Meeting Packet — Commerce Committee, Florida House of Representatives (February 26, 2026)

Summary

Meeting packet for the Commerce Committee of the Florida House of Representatives, with a notice for a meeting on Thursday, February 26, 2026, 3:30 PM to 6:30 PM, listing bills for consideration, among them CS/HB 185 Home Hardening Products and CS/HB 1007 Data Centers. The packet includes the House bill analysis for CS/HB 185, which states that the bill establishes a two-year sales and use tax exemption for qualifying home hardening products, administered through a refund of up to $500. It reports a Revenue Estimating Conference estimate of -$29.9 million for General Revenue and -$8.4 million for local government revenue. The final pages carry a strike amendment for CS/HB 1291.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

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“Meeting Packet — Commerce Committee, Florida House of Representatives (February 26, 2026).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-02-26-3285-commerce-committee-meeting-packets-mtg15186-c8d6318f9f/, SHA-256 984bbd6312b9498e003ed958ba34aaa06af061cae5a1a7b824bad35d8b138115.

Full text

Commerce Committee
Thursday, February 26, 2026
3:30 PM – 6:30 PM
Sumner Hall (404 HOB)

Meeting Packet

Daniel Perez James Buchanan
Speaker Chair
Committee Meeting Notice
HOUSE OF REPRESENTATIVES

Commerce Committee

Start Date and Time: Thursday, February 26, 2026 03:30 PM

End Date and Time: Thursday, February 26, 2026 06:30 PM

Location: Sumner Hall (404 HOB)
Duration: 3.00 hrs

Consideration of the following bill(s):

CS/HB 185 Home Hardening Products by Ways & Means Committee, Dunkley
CS/HB 221 Minimum Wage Requirements by Industries & Professional Activities Subcommittee, Chamberlin
CS/HB 425 Historic Cemeteries Program by Intergovernmental Affairs Subcommittee, Aristide
CS/HB 527 Mandatory Human Reviews of Insurance Claim Denials by Insurance & Banking Subcommittee,
Cassel
CS/HB 637 Farm Equipment by Housing, Agriculture & Tourism Subcommittee, Griffitts
CS/CS/CS/HB 657 Community Associations by Budget Committee, Civil Justice & Claims Subcommittee,
Housing, Agriculture & Tourism Subcommittee, Porras
CS/HB 1001 Official Actions of Local Governments by Civil Justice & Claims Subcommittee, Black
CS/HB 1007 Data Centers by State Affairs Committee, Griffitts
CS/CS/HB 1177 Spaceport Operations and Space Florida by Transportation & Economic Development Budget
Subcommittee, Ways & Means Committee, Sirois
CS/CS/HB 1221 Department of Financial Services by State Administration Budget Subcommittee, Insurance
& Banking Subcommittee, LaMarca
CS/HB 1263 Office of Insurance Regulation by Insurance & Banking Subcommittee, Chaney
CS/HB 1291 Florida Birth-Related Neurological Injury Compensation Association by State Administration
Budget Subcommittee, Anderson

NOTICE FINALIZED on 02/24/2026 4:30PM by Marks.Amie

02/24/2026 04:30:33PM Leagis ® Page 1 of 1
CS/HB 185
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 185 COMPANION BILL: CS/SB 78 (Osgood)
TITLE: Home Hardening Products LINKED BILLS: None
SPONSOR(S): Dunkley RELATED BILLS: None
Committee References
Ways & Means Commerce
19 Y, 0 N, As CS 

SUMMARY
Effect of the Bill:
The bill establishes a two-year sales and use tax exemption for the purchase of qualifying home hardening
products. The exemption is administered through a refund of taxes paid. Qualifying products are defined as impact-
resistant doors, garage doors, and windows installed on eligible residential properties. To qualify, purchases must
be made between July 1, 2026, and June 30, 2028, and a refund application must be submitted no later than
September 30, 2028.

Fiscal or Economic Impact:
The Revenue Estimating Conference estimated the provisions of the bill to have a total nonrecurring negative
impact on General Revenue of -$29.9 million and a total nonrecurring negative impact on local government revenue
of -$8.4 million over fiscal years 2026-27, 2027-28 and 2028-29.
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ANALYSIS
EFFECT OF THE BILL:
The bill creates s. 212.08(21), F.S., which provides for a two-year exemption from the sales and use tax on the sale
of home hardening products used on eligible residential properties. The bill creates a refund mechanism through
which the property owner may receive the benefit of the exemption.

Home hardening products are defined as impact-resistant doors, garage doors, and windows that are designed to
resist wind and wind-borne debris forces. They must be rated for impact resistance and wind pressure in
accordance with the most recent test methods, standards and specifications. (Section 1)

To be eligible for the refund, home hardening products must be purchased from July 1, 2026, through June 30,
2028. The products are required to be used on site-built dwellings on residential property granted a homestead
exemption under s. 196.031, F.S., with a maximum just value of $700,000. A property owner must apply to the
Department of Revenue (Department) for the refund, and may only apply for one eligible property. The owner may
receive up to $500 through a refund of previously paid sales tax. The owner must submit the refund application
between July 1, 2026, and September 30, 2028. The Department must determine the eligibility of the refund within
30 days of receipt. Once a refund has been approved, the Department has 30 days to issue the refund. (Section 1)

The bill specifies the refund application requirements and the process for the Department to issue refunds. The
Department is authorized to adopt emergency rules to implement the refund program. The program is repealed
from statute on June 30, 2029. (Section 1)

The bill takes effect upon becoming law. (Section 2)

STORAGE NAME: h0185a.COM
DATE: 2/24/2026
1
CS/HB 185
RULEMAKING:
The Department has existing rulemaking authority to implement the provisions of Chapter 212, F.S. The bill also
provides emergency rulemaking authority to the Department to implement the program, and specifies that those
emergency rules last until the subsection is repealed (currently set for June 30, 2029) or until the Department
repeals the emergency rules, whichever occurs first.

Lawmaking is a legislative power; however, the Legislature may delegate a portion of such power to executive
branch agencies to create rules that have the force of law. To exercise this delegated power, an agency must
have a grant of rulemaking authority and a law to implement.

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The Revenue Estimating Conference estimates the provisions of the bill will have a total nonrecurring impact on
General Revenue of -$29.9 million through fiscal years 2026-27, 2027-28 and 2028-29.

LOCAL GOVERNMENT:
The Revenue Estimating Conference estimates the provisions of the bill will have a total nonrecurring impact on
local government revenues of -$8.4 million over fiscal years 2026-27, 2027-28 and 2028-29.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Sales Tax

Florida’s sales and use tax is a six percent levy 1 on retail sales of a wide array of tangible personal property,
admissions, and transient lodgings, unless expressly exempted. Generally, the sales tax is added to the price of a
taxable good and collected by the dealer from the purchaser at the time of sale.

In addition to the state sales tax, counties have been granted limited authority to levy discretionary sales surtaxes
for specific purposes on all transactions occurring in the county subject to the state sales tax in ch. 212, F.S., and on
communications services as defined in ch. 202, F.S. 2 A discretionary sales surtax is based on the rate in the county
where the taxable goods or services are sold or delivered. Sixty-five counties currently levy a discretionary sales
surtax with rates ranging from 0.5% to 2.0%.

Impact-resistant windows, doors, and garage doors are generally subject to Florida sales tax. However, the
Legislature previously passed a similar temporary exemption for these type of items for a two-year period lasting
from July 1, 2022, through June 30, 2024. 3

Homestead Exemption

Homestead property is real estate (real property) for which a person has the legal or beneficial title and who in
good faith makes the property his or her permanent residence (or the permanent residence of another legally or
naturally dependent on him or her). 4 The property may be owned jointly, as tenancy by the entireties, or otherwise

1 S. 212.05, F.S.
2 The tax rates, duration of the surtax, method of imposition, and proceed uses are individually specified in s. 212.055, F.S.
General limitations, administration, and collection procedures are set forth in s. 212.054, F.S.
3 Chapter 2022-97, Laws of Florida
4 FLA. CONST. art. VII, s. 6(a) and s. 196.031(1)(a), F.S.

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2
CS/HB 185
in common with others, and can be apportioned among such shared owners. 5 Only one homestead exemption is
allowed to any one person or on any one dwelling house. 6 Individual condominium owners, however, can each
qualify for a separate homestead designation. 7

Every person having legal and equitable title to real estate and who maintains a permanent residence on the real
estate (homestead property) is eligible for an exemption on the first $25,000 of assessed value of the property that
is applicable to all ad valorem tax levies, including levies by school districts. 8 An additional $25,000 exemption
applies to the assessed value of homestead property between $50,000 and $75,000. 9 This exemption is adjusted
annually for inflation 10 and does not apply to ad valorem taxes levied by school districts. 11

Just Value

Just value serves as the basis for determining the assessed value of a homestead property, in accordance with
Article VII, Section 4(d) of the Florida Constitution. It is defined as the price a willing buyer would pay a willing
seller in an arm’s length transaction. 12 The assessed value of property is the annual determination of the value of a
parcel of property for property tax purposes. 13 In newly acquired property, the assessed value is generally equal to
the just value of the property. 14

Site-Built Dwellings

Site-built dwelling means a residential structure that is constructed on its permanent location, in accordance with
applicable state and local building codes. The term refers to a conventional, real-property improvement that is
built in place from individual building materials and systems, rather than transported to the site as a completed or
substantially completed unit. 15 The term does not include mobile homes, manufactured homes, modular homes
constructed off-site and transported as units, recreational vehicles, trailers, park model homes, or any structure
that is titled, registered, or otherwise regulated as a vehicle under chapter 319 or chapter 320, Florida Statutes.

Home Hardening Products

Home hardening can reduce the likelihood of storm-related damage. Retrofitting a building with impact-resistant
doors, garage doors, and windows is an effective way to protect against windborne debris and high wind
pressures, as these products are designed to resist breaking, bending, or other types of failure. 16 Impact-resistant
doors and windows undergo third-party testing and certification by recognized organizations such as ASTM
International, ANSI, the American Architectural Manufacturers Association. 17

5 S. 196.031(1)(a), F.S.
6 Id.
7 Id.
8 FLA. CONST. art. VII, s. 6(a) and s. 196.031, F.S.
9 S. 196.031(1)(b), F.S.
10 FLA. CONST. art VII, s. 6(a)(3) and s. 196.031(1)(b), F.S. In 2025, the adjusted value of this exemption is $25,722. See

https://floridarevenue.com/property/Documents/2025_cpi_homestead_exemption.pdf (last visited Feb. 6, 2026).
11 FLA. CONST. art. VII, s. 6(a)(1)b. and s. 196.031(1)(b), F.S.
12 S. 193.011(1), F.S.
13 S. 192.001(2), F.S.
14 S. 192.001(2)(a), F.S.
15 See HUD, “Single-Family Site-Built, HUD Code Manufactured, and Factory-Built Homes,”,

https://www.huduser.gov/portal/sites/default/files/pdf/Info-Brief-SingleFamilyHomeowners.pdf (last visited Feb 6, 2026).
16 See NAT’L ASS’N OF HOME BUILDERS, Retrofit Improvements-Impact Resistant Doors, available at https://www.nahb.org/-

/media/NAHB/advocacy/docs/top-priorities/codes/retrofit-improvements/retrofit-improvements-impact-resistant-doors-
2020.pdf (last visited Feb. 24, 2026).
17 BUILDING A SAFER FLORIDA, INC., Window Systems, June 2020, available at

https://www.buildingasaferflorida.org/assets/WindowsUpdate062520.pdf (last visited Nov 12, 2025).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
CS/HB 185
Florida Building Code establishes minimum design and performance requirements for wind resistance in
residential structures. 18 Florida’s residential code directs that buildings must be constructed in accordance with
wind provisions that use a basic wind speed based on location, height, and exposure. 19

RECENT LEGISLATION:

YEAR BILL #/SUBJECT HOUSE/SENATE OTHER INFORMATION
SPONSOR(S)
2022 CS/HB 7071 - Taxation Payne Ch. 2022-97, L.O.F.; Created
Two-Year Sales Tax Exemption
on Similar Products.

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
IWays & Means Committee 19 Y, 0 N, As CS 2/10/2026 Aldridge Hallaian

THE CHANGES ADOPTED BY THE • Creates a two-year sales tax refund program instead of a permanent sales
COMMITTEE: tax exemption at the time of sale;
• Provides guidance for the administration of the refund program;
• Limits the refund to $500 of sales tax paid for improvements to site-built
homestead with a just value of $700,000 or less;
• Provides emergency rulemaking authority to the Department to
administer the program;
• Revises the effective date of the bill (upon becoming a law), but retains
effective beginning date of the refund program (July 1, 2026); and
• Repeals the program June 30, 2029.
Commerce Committee Hamon Miralia

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THIS BILL ANALYSIS HAS BEEN UPDATED TO INCORPORATE ALL OF THE CHANGES DESCRIBED ABOVE.
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18 Section 1609, 2023 Florida Building Code (8th Edition) available at https://codes.iccsafe.org/content/FLBC2023P2/chapter-

16-structural-design#FLBC2023P2_Ch16_Sec1609 (last visited February 6, 2026).
19 Section R301.2.1, 2023 Florida Residential Building Code (8th Edition) available at

https://codes.iccsafe.org/content/FLRC2023P1/chapter-3-building-planning#FLRC2023P1_Pt03_Ch03_SecR301.2.1 (last
visited Feb. 6, 2026).
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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

CS/HB 185 2026

1 A bill to be entitled
2 An act relating to home hardening products; providing
3 definitions; providing a sales tax exemption for
4 certain home hardening products; requiring such
5 exemption be in the form of a specified refund;
6 providing requirements for such refund; providing
7 requirements for the Department of Revenue in issuing
8 such refunds; authorizing the department to adopt
9 emergency rules; specifying the timeframe such rules
10 are effective; providing for future repeal; providing
11 an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Subsection (21) is added to section 212.08,
16 Florida Statutes, to read:
17 212.08 Sales, rental, use, consumption, distribution, and
18 storage tax; specified exemptions.—The sale at retail, the
19 rental, the use, the consumption, the distribution, and the
20 storage to be used or consumed in this state of the following
21 are hereby specifically exempt from the tax imposed by this
22 chapter.
23 (21) HOME HARDENING PRODUCTS; SALES TAX REFUND.—
24 (a) As used in this subsection, the term:
25 1. "Eligible residential property" means a residential

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hb185-01-c1
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 185 2026

26 property with a site-built dwelling for which a homestead
27 exemption has been granted under s. 196.031 and which has a just
28 value of $700,000 or less.
29 2. "Home hardening product" means an impact-resistant
30 door, an impact-resistant garage door, or an impact-resistant
31 window.
32 3. "Impact-resistant door" means an exterior door system
33 designed to resist wind and wind-borne debris forces which is
34 rated for impact resistance and wind pressure in accordance with
35 any of the following most recent sets of test methods,
36 standards, and specifications:
37 a. ASTM International E1886 and E1996;
38 b. American Architectural Manufacturers Association 506;
39 or
40 c. Florida Building Code Testing Application Standard TAS
41 201, TAS 202, and TAS 203.
42 4. "Impact-resistant garage door" means a garage door
43 system designed to resist wind and wind-borne debris forces
44 which is rated for impact resistance and wind pressure in
45 accordance with any of the following most recent sets of test
46 methods, standards, and specifications:
47 a. ASTM International E1886 and E1996;
48 b. American Architectural Manufacturers Association 506;
49 c. Florida Building Code Testing Application Standard TAS
50 201, TAS 202, TAS 203; or

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 185 2026

51 d. ANSI/DASMA 115.
52 5. "Impact-resistant window" means a window that is
53 laminated or has been treated with a polycarbonate glazing
54 system designed to resist wind and wind-borne debris forces
55 which is rated for impact resistance and wind pressure in
56 accordance with any of the following most recent sets of test
57 methods, standards, and specifications:
58 a. ASTM International E1886 and E1996;
59 b. American Architectural Manufacturers Association 506;
60 or
61 c. Florida Building Code Testing Application Standard TAS
62 201, TAS 202, and TAS 203.
63 6. "Owner" means a person who holds the legal title to an
64 eligible residential property.
65 7. "Purchase period" means retail purchases made during
66 the period of July 1, 2026, through June 30, 2028.
67 8. "Site-built dwelling" means a dwelling constructed at
68 its permanent location. The term does not include mobile homes,
69 manufactured homes, trailers, or any home or trailer that may be
70 titled or registered in accordance with chapter 319 or chapter
71 320.
72 (b) Home hardening products used on eligible residential
73 property are exempt from the tax imposed by this chapter upon an
74 affirmative showing to the satisfaction of the department that
75 the requirements of this subsection have been met, in an amount

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 185 2026

76 up to $500 per eligible residential property for purchases made
77 during the purchase period. This exemption inures to the owner
78 through a refund of previously paid taxes. To be eligible to
79 receive a refund, an owner must submit an application to the
80 department on a form approved by the department which includes
81 all of the following:
82 1. The name and address of the owner claiming the refund.
83 2. The address of the eligible residential property for
84 which a refund of previously paid taxes is being sought.
85 3. A sworn statement, submitted under penalty of perjury,
86 from the owner which specifies the actual cost of the exempt
87 home hardening products, and the amount of sales tax paid in
88 this state on the exempt home hardening products, and which
89 states that the property is an eligible residential property,
90 and that the home hardening products have been installed in the
91 eligible residential property. Copies of receipts evidencing
92 payment of sales tax must be attached to the form.
93 (c) The owner may submit an application for only one
94 eligible residential property.
95 (d) The owner must submit the refund application to the
96 department between July 1, 2026, and September 30, 2028. Within
97 30 business days after receipt of the refund application, the
98 department must determine if the application meets the
99 requirements of this section. The department must issue a refund
100 within 30 business days after the application is formally

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101 approved.
102 (e) The department is authorized, and all conditions are
103 deemed met, to adopt emergency rules pursuant to s. 120.54(4) to
104 implement the provisions of this subsection. Emergency rules
105 adopted under this subsection are exempt from s. 120.54(4)(c)
106 and shall remain in effect until the expiration or repeal of
107 this subsection, or until repeal of the emergency rule by the
108 Department of Revenue pursuant to s. 120.54(4)(j), whichever
109 occurs first.
110 (f) This subsection is repealed June 30, 2029.
111 Section 2. This act shall take effect upon becoming a law.

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hb185-01-c1
CS/HB 221
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 221 COMPANION BILL: SB 1412 (Martin)
TITLE: Minimum Wage Requirements LINKED BILLS: None
SPONSOR(S): Chamberlin RELATED BILLS: None
Committee References
Industries & Professional Careers & Workforce Commerce
Activities  11 Y, 5 N 
11 Y, 6 N, As CS

SUMMARY
Effect of the Bill:
The bill allows employees to opt out of receiving the state minimum wage for work-studies, internships,
preapprenticeship programs, or other similar work-based learning opportunities. The bill limits the timeframe for
such work-based learning opportunities to 252 days, or two semesters, whichever is longer, and for employees
under 18 years of age, the bill provides a shorter timeframe of 126 days, or one semester. The bill defines “work-
based learning opportunity” to ensure that such activities provide beneficial experience and training for the
employee. The bill also clarifies that the employee must be paid at or above the federal minimum wage while
participating in the work-based learning opportunity.

Fiscal or Economic Impact:
The bill does not appear to have a fiscal impact on state or local government. The bill allows certain employees to
opt out of receiving the state minimum wage. The fiscal impact on such employees and employers is indeterminate.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill creates the "On-the-Job Workforce Training Act." (Section 1)

The bill amends the Florida Minimum Wage Act to provide specific exemptions from state minimum wage
requirements for certain employees. The bill provides that employers are not required to pay the state minimum
wage to employees in a structured work-study, internship, preapprenticeship program, or other similar work-
based learning opportunity, provided such employees choose to opt out of receiving the state minimum wage.
(Section 2)

The bill prohibits such work-based learning opportunities from lasting longer than:
• 252 days or two semesters if the employee is earning credit at a school, college, or university, whichever is
longer; or
• If the employee is under 18 years of age, 126 days, or one semester if the employee is earning credit at a
school, college, or university, whichever is longer. (Section 2)

The bill defines “work-based learning opportunity” as any “interaction with industry or community professionals
which occurs in a workplace setting with the sole purpose of providing the employee with an authentic structured
learning experience and on-the-job training that fosters in-depth, firsthand engagement with the tasks required in
a given career field in order to become qualified and proficient in such career field.” (Section 2)

STORAGE NAME: h0221d.COM
DATE: 2/24/2026
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CS/HB 221
The bill requires work-based learning opportunities to meet all of the following criteria:
• Be developmentally appropriate.
• Identify learning objectives for the term of experience.
• Explore multiple aspects of an industry.
• Develop workplace skills and competencies.
• Assess employee performance.
• Be documented and reported in compliance with state and federal labor laws. (Section 2)

The bill requires an employee to opt out of receiving the state minimum wage by voluntarily signing a waiver. The
written waiver must state that the employee acknowledges his or her right to the state minimum wage pursuant to
the State Constitution and that the employee is knowingly and voluntarily choosing to receive a lesser amount for
his or her work-based learning opportunity. (Section 2)

The bill prohibits an employer from coercing an employee to opt out of receiving the state minimum wage, and
provides that if the employee is younger than 18 years of age, in order for the waiver to be effective, the employee's
parent or guardian must have agreed and signed the waiver on behalf of and in addition to the minor employee.
(Section 2)

The bill requires employees who opt-out of the state minimum wage to be paid at or above the federal minimum
wage, and specifies that at the expiration of the work-based learning opportunity, the employee must be paid at or
above the state minimum wage regardless of his or her position or job title with the employer. (Section 2)

The effective date of the bill is July 1, 2026. (Section 3)

FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
Indeterminate. The bill allows certain employees to opt out of receiving the state minimum wage.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Fair Labor Standards Act
The federal Fair Labor Standards Act (FLSA), enacted in 1938, provides covered workers with minimum wage,
overtime pay, and child labor protections. 1 In 1938, the FLSA established a minimum wage of $.25 an hour. The
current federal minimum wage rate is $7.25 an hour, which went into effect July 24, 2009. The FLSA applies to
employment within any state in the U.S., the District of Columbia, or any territory or possession of the U.S. 2

The FLSA covers most private and public sector employees. However, certain employers and employees are
exempt from coverage, including individuals with disabilities, youth workers, tipped workers, and executive,
administrative, and professional workers. The FLSA covers businesses if the business has annual sales of at least
$500,000. 3 It also covers certain individual employees if such employee is engaged in interstate commerce.

1 29 U.S.C. § 201-219 and 29 C.F.R. Ch. V.
2 Congressional Research Service, CRS Report R42713, The Fair Labor Standards Act (FLSA): An Overview,

https://crsreports.congress.gov/product/pdf/R/R42713, (last visited Nov. 5, 2026). (The main FLSA provisions and
accompanying Department of Labor (DOL) regulations constitute what is commonly known as federal wage and hour laws and
federal child labor law.).
3 The size of an enterprise is measured by its “annual sales or business done.” Annual sales or business done includes all

business activities that can be measured in dollars. Thus, retailers are covered by the FLSA if their annual sales are at least
$500,000. Owners of rental properties are covered if they collect at least $500,000 annually in rent. 29 C.F.R.§§779.258-
779.259.
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CS/HB 221
The FLSA applies to all: 4
• Governments: Federal, state, or local government agencies.
• Hospitals: Hospitals, or institutions primarily engaged in the care of the sick, the aged, or the mentally ill or
disabled who live on the premises. It does not matter if the hospital or institution is public or private or is
operated for profit or not-for-profit.
• Schools: Pre-schools, elementary or secondary schools or institutions of higher learning (e.g., college), or a
school for mentally or physically handicapped or gifted children. It does not matter if the school or
institution is public or private or operated for profit or not-for-profit.

The FLSA includes several exemptions from the federal minimum wage provisions, including:5
• Executive, administrative, and professional employees.
• Employees in certain seasonal amusement or recreational establishments, employees in certain small
newspapers, seamen employed on foreign vessels, employees engaged in fishing operations, and
employees engaged in newspaper delivery.
• Farm workers employed by certain employers.
• Casual babysitters and persons employed as companions for the elderly or infirm.
• Border patrol agents. 6
• Tipped employees, as long as their tips, combined with the employer's cash wage, equal at least the
federal minimum wage ($7.25). The minimum cash wage for tipped employees is $2.13 per hour, with the
employer able to claim a tip credit of up to $5.12 per hour. 7
• Learners, apprentices, and messengers employed primarily in delivering letters and messages,
under special certificates issued by the Department of Labor. 8

The FLSA provides for the employment of certain individuals at wage rates below the minimum wage including
student-learners (vocational education students), as well as full-time students employed by retail or service
establishments, agriculture, or institutions of higher education. Also included are individuals whose earning or
productive capacity is impaired by a physical or mental disability, including those related to age or injury, for the
work to be performed. Certificates issued by the Department of Labor's Wage and Hour Division are required for
this type of employment. 9

The FLSA exempts certain people who volunteer to perform services for a state or local government agency or who
volunteer for humanitarian purposes for non-profit food banks. There is also a recognized exception for
individuals who volunteer their time, freely and without anticipation of compensation, for religious, charitable,
civic, or humanitarian purposes to non-profit organizations. Unpaid internships for public sector and non-profit
charitable organizations, where the intern volunteers without expectation of compensation, are generally
permissible. 10

The FLSA was amended in 2014, concerning border patrol agents, and again in 2018, to exempt minor league
baseball players who are paid at least $290 per week during the 2018 championship season from the federal

4 U.S. Department of Labor, FLSA Advisor, https://webapps.dol.gov/elaws/whd/flsa/scope/screen10.asp, (last visited

February 23, 2026).
5 29 U.S.C. § 213. (It also includes separate exemptions from overtime pay.)
6 See Border Patrol Agent Pay Reform Act of 2014, S.1691, 113th Cong, (2014).
7 29 U.S.C. § 203(m)(2)(A).
8 29 U.S.C. § 214.
9 U.S. Department of Labor, Subminimum Wage, https://www.dol.gov/general/topic/wages/subminimumwage (last visited

February 23, 2026).
10 U.S. Department of Labor, Wage and Hour Division, Fact Sheet #71: Internship Programs Under the FLSA,

https://www.dol.gov/agencies/whd/fact-sheets/71-flsa-internships (last visited February 23, 2026).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
CS/HB 221
minimum wage rate and overtime pay. These two amendments were the only amendments made to the minimum
wage exemptions provisions of the FLSA since Florida passed its minimum wage law in 2005. 11

The FLSA provides that if states enact worker protections, including minimum wage rates, that are more protective
of employees than what is provided by the FLSA, the state law applies. 12 Consequently, no state law may weaken
the worker protections in the FLSA. However, state laws that impose greater worker protections will supersede
those in the FLSA. 13

Thirty states plus Washington DC, Guam, Puerto Rico, and the Virgin Islands provide a minimum wage greater than
the federal minimum wage. Thirteen states provide a minimum wage that is equal to the federal minimum wage.
Five states have not adopted a minimum wage and two states have a minimum wage that is below the federal
minimum wage. 14 For those seven states, the federal minimum wage applies, but only to those workers covered by
the FLSA.

Florida law does not indicate or allow for wage exceptions for learners, apprentices, or messengers. Thus, the FLSA
provisions apply.

Minimum Wage Contained in Article X, Section 24 of the Florida Constitution
On November 2, 2004, Floridians voted to amend the Florida Constitution by adding a minimum wage provision
(Art. X, Sec. 24) that established the state minimum wage. 15 Prior to this date, Florida did not have a state minimum
wage so the FLSA applied for covered workers. Art. X, Sec. 24 provides the amount of the minimum wage and the
procedure for calculating increases in the minimum wage. 16 The amendment also provides that “all working
Floridians are entitled to be paid a minimum wage sufficient to provide a decent and healthy life, that protects their
employers from unfair low wage competition, and that does not force them to rely on taxpayer-funded public
services.” 17

On November 3, 2020, Florida voters again approved a constitutional amendment related to the state’s minimum
wage, Amendment 2, to gradually increase the state’s minimum wage to $15 an hour by the year 2026. 18 Pursuant
to the passage of Amendment 2, on September 30, 2021, Florida’s minimum wage increased to $10 per hour. Each
year thereafter, Florida’s minimum wage increased by $1 and will continue to do so until the minimum wage
reaches $15 per hour on September 30, 2026. Beginning in 2027, the minimum wage will be adjusted annually
for inflation, as it had been done from 2004 to 2021.

Art. X, Sec. 24 specifies that “employers shall pay Employees Wages no less than the Minimum Wage for all hours
worked in Florida.” 19 Art. X, Sec. 24 authorizes persons aggrieved by violations the following remedies: 20
• A civil action.
• Recovery of the full amount of back wages unlawfully withheld plus the same amount as liquidated
damages.

11 s. 448.110, F.S., expressly references ss. 213 and 214 of the FLSA, which address minimum wage exemptions and

employment under special certificates, respectively. However, s. 214 has not been amended since 1989. (See Pub. L. 101–157,
§ 4(d), Nov. 17, 1989, 103 Stat. 941).
12 29 U.S.C. §218.
13 Congressional Research Service, CRS Report R42713, The Fair Labor Standards Act (FLSA): An Overview, Updated March 8,

2023, https://crsreports.congress.gov/product/pdf/R/R42713, (last visited Nov. 5, 2026).
14 U.S. Department of Labor, Consolidated Minimum Wage Table, https://www.dol.gov/agencies/whd/mw-consolidated (last

visited February 23, 2026).
15 Art. X, s. 24, Fla. Const.
16 Art. X, s. 24(c), Fla. Const.
17 Art. X, s. 24(a), Fla. Const.
18 U.S. Department of State, Notice of Increase to State of Florida’s Minimum Wage, https://www.state.gov/wp-

content/uploads/2021/01/2021-01-29-Notice-FL-Minimum-Wage-Increase.pdf (last visited February 23, 2026).
19 Art. X, s. 24(c), Fla. Const.
20 Art. X, s. 24(e), Fla. Const.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
CS/HB 221
• Reasonable attorney’s fees and costs.
• Legal or equitable relief, including, reinstatement in employment and/or injunctive relief.

Art. X, Sec. 24 provides that any employer or other person found liable for willful violations is subject to a $1,000
fine per violation, and the attorney general or other official designated by the state legislature may also bring a civil
action.

Art. X, Sec. 24 provides that “implementing legislation is not required in order to enforce this amendment. The
state legislature may by statute establish additional remedies or fines for violations of this amendment, raise the
applicable Minimum Wage rate, reduce the tip credit, or extend coverage of the Minimum Wage to employers or
employees not covered by this amendment.” 21

Employees
Art. X, Sec. 24 references the FLSA and specifically ties the meaning 22 of “employer,” “employee,” and “wage,” to the
meanings established under the FLSA and its implementing regulations. 23 It also indicates that case law,
administrative interpretations, and other guiding standards developed under the federal FLSA must guide the
construction of Florida’s Constitution related to Art. X, Sec. 24 and any implementing statutes or regulations. 24

The FLSA defines:25
• “Employer” as “any person acting directly or indirectly in the interest of an employer in relation to an
employee and includes a public agency, but does not include any labor organization (other than when
acting as an employer) or anyone acting in the capacity of officer or agent of such labor organization.”
• “Employee” as “any individual employed by an employer.”

The FLSA requires “for-profit” employers to pay employees for their work. Interns and students, however, may
not be “employees” under the FLSA—in which case the FLSA does not require compensation for their work.
Courts have used the “primary beneficiary test” to determine whether an intern or student is, in fact, an employee
under the FLSA. 26 This determination is made on a case-by-case basis.

This test allows courts to examine the “economic reality” of the intern-employer relationship to determine which
party is the “primary beneficiary” of the relationship. Courts 27 have identified the following seven factors as part of
the test:
• The extent to which the intern and the employer clearly understand that there is no expectation of
compensation. Any promise of compensation, express or implied, suggests that the intern is an employee—
and vice versa.
• The extent to which the internship provides training that would be similar to that which would be given in
an educational environment, including the clinical and other hands-on training provided by educational
institutions.

21 Art. X, s. 24(f), Fla. Const.
22 In re Advisory Opinion to the Atty. Gen. re Fla. Minimum Wage Amend., 880 So. 2d 636, 641–42 (Fla. 2004). (“The proposed

amendment does not state that it is adopting the FLSA's definition of the term “employee,” but provides that it is adopting the
meaning of the term “employee,” which is a much broader concept.”)
23 Art. X, s. 24(b), Fla. Const.
24 Art. X, s. 24(f), Fla. Const.
25 29 U.S.C. §203.
26 E.g., Benjamin v. B & H Educ., Inc., --- F.3d ---, 2017 WL 6460087, at *4-5 (9th Cir. Dec. 19, 2017); Glatt v. Fox Searchlight

Pictures, Inc., 811 F.3d 528, 536-37 (2d Cir. 2016); Schumann v. Collier Anesthesia, P.A., 803 F.3d 1199, 1211-12 (11th Cir.
2015); see also Walling v. Portland Terminal Co., 330 U.S. 148, 152-53 (1947); Solis v. Laurelbrook Sanitarium & Sch., Inc., 642
F.3d 518, 529 (6th Cir. 2011).
27 Schumann v. Collier Anesthesia, PA, 803 F.3d 1199 (11th Cir. 2015) (Adopting a modified version of the "primary

beneficiary" test, which examines the "economic reality" of the relationship between the intern and employer to determine
who benefits most.)
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
CS/HB 221
• The extent to which the internship is tied to the intern’s formal education program by integrated
coursework or the receipt of academic credit.
• The extent to which the internship accommodates the intern’s academic commitments by corresponding to
the academic calendar.
• The extent to which the internship’s duration is limited to the period in which the internship provides the
intern with beneficial learning.
• The extent to which the intern’s work complements, rather than displaces, the work of paid employees
while providing significant educational benefits to the intern.
• The extent to which the intern and the employer understand that the internship is conducted without
entitlement to a paid job at the conclusion of the internship.

Courts have described the “primary beneficiary test” as a flexible test, and no single factor is determinative.
Accordingly, whether an intern or student is an employee under the FLSA necessarily depends on the unique
circumstances of each case.

If analysis of these circumstances reveals that an intern or student is actually an employee, then he or she is
entitled to both minimum wage and overtime pay under the FLSA. On the other hand, if the analysis confirms that
the intern or student is not an employee, then he or she is not entitled to either minimum wage or overtime pay
under the FLSA.

Florida Minimum Wage Act
The Florida Minimum Wage Act (Act) implements the minimum wage provisions in Art. X, Sec. 24. 28 The Act
designates the Department of Commerce (Commerce) as the state agency that implements the minimum wage
requirements, 29 establishes procedures with respect to civil actions alleging violations, and provides that it is the
exclusive remedy under state law for violations of Art. X, Sec. 24. 30

The Act provides that, beginning May 2, 2005, employers are required to pay employees a minimum wage at an
hourly rate of $6.15 for all hours worked in Florida. Only those individuals entitled to receive the federal minimum
wage under the FLSA and its implementing regulations are eligible to receive the state minimum wage pursuant to
the Florida Constitution.

The Act requires Commerce to calculate an adjusted state minimum wage rate and requires the Department of
Revenue (DOR) and Commerce to annually publish the amount of the adjusted state minimum wage and the
effective date on their websites. 31 The Act authorizes persons to file a complaint or inform any person of his or her
potential rights pursuant to Art. X, Sec. 24 regarding unpaid wages. 32 The Act also authorizes the Attorney General
(AG) to bring a civil action to enforce these provisions. The AG may seek injunctive relief, and for willful violations,
may seek to impose a fine of $1,000 per violation, payable to the state. 33

As it relates to the federal minimum wage and the FLSA, the Act specifies that: 34
• Only those individuals entitled to receive the federal minimum wage under the FSLA, and its implementing
regulations, are eligible to receive the state minimum wage; and
• Provisions related to federal minimum wage exemptions in the FLSA are considered incorporated in the
Act.

28 Ch. 2005-353, Laws of Fla., codified in s. 448.110, F.S.
29 S. 448.110(2), F.S.
30 S. 448.110(10), F.S. HB 5 (2023) renames the Department of Economic Opportunity as the Department of Commerce; SB 82

(2024), ch. 220, F.S., makes this conforming change in the Florida Minimum Wage Act.
31 S. 448.110(4), F.S.
32 S. 448.110(5), F.S.
33 S. 448.110(7), F.S.
34 S. 448.110(3), F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
CS/HB 221
RECENT LEGISLATION:

YEAR BILL #/SUBJECT HOUSE/SENATE OTHER INFORMATION
SPONSOR(S)
2024 CS/CS/HB 433 - Employment Regulations Esposito/ Trumbull Became law on July 1, 2024.

OTHER RESOURCES:
U.S. Department of Labor: State Minimum Wage Laws

U.S. Department of Labor: Internship Programs

Florida Department of Commerce: Florida’s Minimum Wage

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Industries & Professional Activities 11 Y, 6 N, As CS 1/28/2026 Anstead Thompson
Subcommittee
THE CHANGES ADOPTED BY THE • Shortened the period of time that an employee under 18 years of age is
COMMITTEE: allowed to work for less than minimum wage.
• Defined “work-based learning opportunity.”
• Clarified that any employee that participates in the program may not be
paid less than the federal minimum wage.
Careers & Workforce 11 Y, 5 N Kiner Kiner
Subcommittee
Commerce Committee Hamon Thompson

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

CS/HB 221 2026

1 A bill to be entitled
2 An act relating to minimum wage requirements;
3 providing a short title; amending s. 448.110, F.S.;
4 exempting an employer from state minimum wage
5 requirements for specified employees; prohibiting
6 certain work-based learning opportunities from lasting
7 longer than a specified timeframe; defining the term
8 "work-based learning opportunity"; authorizing
9 employees to voluntarily opt out of the state minimum
10 wage requirements by signing a waiver; prohibiting an
11 employer from coercing an employee into opting out of
12 the state minimum wage; providing requirements for the
13 waiver to be effective for a minor employee; requiring
14 employers to pay an employee at or above the federal
15 minimum wage; requiring an employee to be paid at or
16 above the state minimum wage at the expiration of the
17 work-based learning opportunity; providing an
18 effective date.
19
20 Be It Enacted by the Legislature of the State of Florida:
21
22 Section 1. This act may be cited as the "On-the-Job
23 Workforce Training Act."
24 Section 2. Subsection (3) of section 448.110, Florida
25 Statutes, is amended to read:

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CS/HB 221 2026

26 448.110 State minimum wage; annual wage adjustment;
27 enforcement.—
28 (3)(a) Employers shall pay employees a minimum wage at an
29 hourly rate of $6.15 for all hours worked in Florida. Only those
30 individuals entitled to receive the federal minimum wage under
31 the federal Fair Labor Standards Act, as amended, and its
32 implementing regulations shall be eligible to receive the state
33 minimum wage pursuant to s. 24, Art. X of the State Constitution
34 and this section. The provisions of ss. 213 and 214 of the
35 federal Fair Labor Standards Act, as interpreted by applicable
36 federal regulations and implemented by the Secretary of Labor,
37 are incorporated herein.
38 (b)1. An employer is not subject to the state minimum wage
39 requirements of this section for an employee who is in a
40 structured work-study, internship, or preapprenticeship program,
41 or other similar work-based learning opportunity, and such
42 employee opts out of receiving the minimum wage.
43 a. Such work-based learning opportunity may not last
44 longer than 252 days or, if the employee is earning credit at a
45 school, Florida College System institution, or state university,
46 two semesters, whichever is longer.
47 b. If the employee is under 18 years of age, such work-
48 based learning opportunity may not last longer than 126 days or,
49 if the employee is earning credit at a school, Florida College
50 System institution, or state university, one semester, whichever

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CS/HB 221 2026

51 is longer.
52 2. For purposes of this paragraph, the term "work-based
53 learning opportunity" means any interaction with industry or
54 community professionals which occurs in a workplace setting with
55 the sole purpose of providing the employee with an authentic
56 structured learning experience and on-the-job training that
57 fosters in-depth, firsthand engagement with the tasks required
58 in a given career field in order to become qualified and
59 proficient in such career field. A work-based learning
60 opportunity must meet all of the following criteria:
61 a. Be developmentally appropriate.
62 b. Identify learning objectives for the term of the
63 experience.
64 c. Explore multiple aspects of an industry.
65 d. Develop workplace skills and competencies.
66 e. Assess employee performance.
67 f. Be documented and reported in compliance with state and
68 federal labor laws.
69 (c) An employee may opt out of receiving the state minimum
70 wage by voluntarily signing a waiver of his or her right to the
71 state minimum wage established under this subsection. The waiver
72 must state that the employee acknowledges his or her right to
73 the state minimum wage pursuant to s. 24, Art. X of the State
74 Constitution and this section and that the employee is knowingly
75 and voluntarily choosing to receive a lesser amount for his or

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CS/HB 221 2026

76 her work-based learning opportunity as described in paragraph
77 (b). An employer may not coerce an employee to opt out of
78 receiving the state minimum wage. If the employee is younger
79 than 18 years of age, in order for the waiver to be effective,
80 the employee's parent or guardian must have agreed and signed
81 the waiver on behalf of, and in addition to, the minor employee.
82 (d) Except as provided in paragraphs (b) and (c), an
83 employer must pay an employee a wage at or above the federal
84 minimum wage.
85 (e) At the expiration of the work-based learning
86 opportunity, the employee must be paid at or above the state
87 minimum wage regardless of his or her position or job title with
88 the employer.
89 Section 3. This act shall take effect July 1, 2026.

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hb221-01-c1
CS/HB 425
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 425 COMPANION BILL: SB 34 (Sharief)
TITLE: Historic Cemeteries Program LINKED BILLS: HB 1485 Aristide
SPONSOR(S): Aristide RELATED BILLS: None
Committee References
Intergovernmental Affairs Commerce
16 Y, 0 N, As CS 

SUMMARY
Effect of the Bill:
The bill requires counties and municipalities to approve applications to change land use designations for historic
African-American cemeteries if they sell excess vacant land to fund the cemetery's long-term maintenance and
upkeep. The bill allows a county or municipality to use reasonable discretion to determine the new land use
designation.

Fiscal or Economic Impact:
None
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill provides that if a historic African-American cemetery recorded in the Florida Master Site File sells excess
vacant land to fund the cemetery's long-term maintenance and upkeep, the county or municipality where the
cemetery is located must administratively approve an application to rezone or change the land use designation of
the excess land. The bill allows a county or municipality to use reasonable discretion to determine the new zoning
or land use designation, provided that it is compatible with the surrounding area. (Section 1)

The bill provides an effective date of July 1, 2026. (Section 2)

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Historic Cemeteries Program
Cemeteries that have been recorded are less likely to be destroyed as a result of construction and development
because their locations are known in advance. The Florida Public Archaeology Network estimates that
approximately three quarters of the 5,000 to 7,000 historic cemeteries in the state have not been recorded. 1 The
Historic Cemeteries Program (Program) within the Florida Department of State, created in 2023, encourages local
governments and organizations to preserve, rehabilitate, and provide public education on abandoned and historic
cemeteries. 2 Among other duties, the Program maintains the state database of cemeteries established at least 50
years ago, develops guidelines on identification and maintenance for historic cemeteries, and assists with research,
identification, and coordination related to newly discovered cemeteries. 3

1 Fla. Public Archaeology Network, Florida Historic Cemetery Inventory (last visited Feb. 16, 2026).
2 Ch. 2023-142, Laws of Fla., codified as s. 267.21, F.S.
3 S. 267.21(1), F.S., See Fla. Dept. of State, Historic Cemeteries Program (last visited Feb. 16, 2026).

STORAGE NAME: h0425a.COM
DATE: 2/24/2026
1
CS/HB 425
The Program is responsible for coordinating with the University of South Florida’s Black Cemetery Network to
facilitate the inclusion of abandoned African-American cemeteries in the Black Cemetery Network. 4 The Program
also administers Abandoned African-American Cemeteries Grants, which provide a maximum award of $50,000 in
funding per project to assist with cemetery preservation efforts. 5 To be eligible for these grants, a cemetery must
not be licensed under current law, must have had a majority of interments occurring more than 50 years ago, and
must have a documented association with the interments of persons of primarily African-American ancestry. 6
Grant project types include cemetery research and cemetery protection. 7 In the 2026 fiscal year, eight projects
received funding from an Abandoned African-American Cemetery Grant. 8

Florida Master Site File
The Florida Department of State’s Division of Historical Resources oversees the National Register of Historic Places
program for Florida and maintains the Florida Master Site File (Site File), 9 which is the official state inventory of
historical cultural resources. 10 Categories of resources recorded at the Site File include archaeological sites,
historical structures, historical cemeteries, historical bridges, and historic districts. The Site File is an active
inventory of Florida's historical cultural resources without regard to historical significance. The Site File currently
holds information on more than 200,000 cultural resources and copies of over 22,000 manuscripts. Site File staff
do not evaluate the historical significance of sites or the potential impact of development projects; however,
evaluations of historical significance by other State Historic Preservation Office staff and preservation consultants
are included in the records.

Comprehensive Planning
The Community Planning Act 11 provides counties and municipalities with the power to plan for future
development by adopting comprehensive plans. 12 Each county and municipality must maintain a comprehensive
plan to guide future development and growth. 13

All development, both public and private, and all development orders approved by local governments must be
consistent with the local government’s comprehensive plan. 14 A comprehensive plan is intended to provide for the
future use of land, which contemplates a gradual and ordered growth, and establishes a long-range maximum limit
on the possible intensity of land use. 15

4 Fla. Dept. of State, Historic Cemeteries Program (last visited Feb. 16, 2026).
5 Fla. Dept. of State, Division of Historical Resources, Abandoned African-American Cemeteries Grants (last visited Feb. 16,

2026).
6 Fla. Dept. of State, Division of Historical Resources, Abandoned African-American Cemeteries Grant Guidelines, p. 5 (last visited

Feb. 16, 2026).
7 Id. at pp. 8-9.
8 Fla. Dept. of State, Abandoned African-American Cemetery Grants FY2026 Final Funded List (last visited Feb. 16, 2026).
9 Fla. Dept. of State, Division of Historical Resources, What We Do (last visited Feb. 16, 2026).
10 Fla. Dept. of State, Division of Historical Resources, Master Site File (last visited Feb. 16, 2026).
11 Ch. 163, Part II, F.S.
12 S. 163.3167(1), F.S.
13 S. 163.3167(1)(a), (2), F.S.
14 S. 163.3194(1)(a), F.S.
15 See, e.g., Sarasota County, Fla. Comprehensive Plan, Future Land Use Element, FLU Policy 1.1.1 (last visited Feb. 16, 2026).
16 S. 163.3177(1), F.S.
17 S. 163.3177(6), F.S.
18 S. 163.3177(1)(a), F.S.

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2
CS/HB 425
• Transportation.
• General sanitary sewer, solid waste, drainage, potable water and natural groundwater aquifer recharge.
• Conservation.
• Recreation and open space.
• Housing.
• Coastal management.
• Intergovernmental coordination.
• Property rights.19

Future Land Use Element
Comprehensive plans must include an element regarding future land use that designates the proposed future
general distribution, location, and extent of the uses of land for a number of uses and categories of public and
private uses of land. 20 Each future land use category must be defined in terms of uses included, and must include
standards to be followed in the control and distribution of population densities and building and structure
intensities. 21 The proposed distribution, location, and extent of the various categories of land use must be shown
on a land use map or map series. Future land use plans and plan amendments are based on surveys, studies, and
data regarding the area. 22

A comprehensive plan’s future land use element establishes a range of allowable uses and densities and intensities
over large areas, and the specific use and intensities for specific parcels within that range are decided by a more
detailed, implementing zoning map. 23

Land Development Regulations
Comprehensive plans are implemented via land development regulations. Land development regulations are
ordinances enacted by governing bodies for the regulation of any aspect of development and includes any local
government zoning, rezoning, subdivision, building construction, sign regulations, or any other regulations
controlling the development of land. 24

Each county and municipality must adopt and enforce land development regulations that are consistent with and
that implement its adopted comprehensive plan. 25 Local governments are encouraged to use innovative land
development regulations 26 and may adopt measures for the purpose of increasing affordable housing using land
use mechanisms. 27

Zoning
A comprehensive plan’s future land use element establishes a range of allowable uses and densities 28 and
intensities 29 over large areas, while the specific use and intensities for specific parcels within that range are
decided by a more detailed, implementing zoning map. 30

19 S. 163.3177(3), (6)(a)-(i), F.S.
20 S. 163.3177(6)(a), F.S. Applicable uses and categories of public and private uses of land include, but are not limited to,

residential, commercial, industrial, agricultural, recreational, conservation, educational, and public facilities.
21 S. 163.3177(6)(a)1., F.S.
22 S. 163.3177(6)(a)2., F.S.
23 Richard Grosso, A Guide to Development Order "Consistency" Challenges Under Florida Statutes Section 163.3215, 34 J. Envtl. L.

& Litig. 129, 154 (2019) (citing Brevard Cty. v. Snyder, 627 So. 2d 469, 475 (Fla. 1993)).
24 S. 163.3164(26), F.S.
25 S. 163.3202(1), F.S.
26 S. 163.3202(3), F.S.
27 S. 125.01055 and 166.04151, F.S.
28 “Density” means an objective measurement of the number of people or residential units allowed per unit of land, such as

residents or employees per acre. S. 163.3164(12), F.S.
29 “Intensity” means an objective measurement of the extent to which land may be developed or used, including the

consumption or use of the space above, on, or below ground; the measurement of the use of or demand on natural resources;
and the measurement of the use of or demand on facilities and services. S. 163.3164(22), F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
CS/HB 425

Zoning maps and zoning districts are adopted by a local government for developments within each land use
category or sub-category. While land uses are general in nature, one or more zoning districts may apply within
each land use designation. 31 Common regulations within the zoning map districts include density, height and bulk
of buildings, setbacks, and parking requirements. Regulations for a zoning category in a downtown area may allow
for more density and height than allowed in a suburb, for instance.

If a developer or landowner believes that a proposed development may have merit but it does not meet the
requirements of a zoning map in a jurisdiction, the developer or landowner can seek a rezoning through a rezoning
application. 32 Rezoning applications are initially reviewed by local government staff, then by an appointed body
that makes recommendations to the governing body of the local government, which makes the final
determination. 33 If a property has unique circumstances or small nonconformities but otherwise meets zoning
regulations, local governments may ease restrictions on certain regulations such as building size or setback
through an application for a variance. 34 However, any action to rezone or grant a variance must be consistent with
the local government’s comprehensive plan.

Ordinances or resolutions that change the actual list of permitted, conditional, or prohibited uses within a zoning
category or ordinances or resolutions initiated by the local government that change the actual zoning map
designation of a parcel or parcels of land must follow additional enhanced notice requirements:
• If the area affected is less than 10 acres, the local government must notify by mail each property owner and
hold a public meeting to discuss the ordinance or resolution before passage.
• If the area affected is 10 acres or greater, the local government must hold two separate meetings to discuss
the changes, and notice the public through either mail to each property owner or to the public generally by
newspaper. 35

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Intergovernmental Affairs 16 Y, 0 N, As CS 2/18/2026 Darden Hilliard
Subcommittee
THE CHANGES ADOPTED BY THE • Clarified which cemeteries are eligible for the provisions of the bill.
COMMITTEE: • Allowed a county or municipality to determine the new zoning or land
use designation of the parcel.
Commerce Committee Hamon Fletcher

30 Grosso, supra note 23.
31 See, e.g., Indian River County, Planning and Development Services FAQ (last visited Feb. 16, 2026).
32 See, e.g., City of Tallahassee, Application for Rezoning Review (last visited Feb. 16, 2026).
33 See id. and City of Redington Shores, Planning and Zoning Board (last visited Feb. 16, 2026).
34 See, e.g., City of Tallahassee, Variance and Appeals and Seminole County, Variance Process Requirements (last visited Feb. 16,

2026).
35 See ss. 125.66(5) and 166.041(3), 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

CS/HB 425 2026

1 A bill to be entitled
2 An act relating to the Historic Cemeteries Program;
3 amending s. 267.21, F.S.; requiring local governments
4 to approve applications from historic African-American
5 cemeteries to change the land use category and zoning
6 district of excess vacant land under certain
7 conditions; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsection (3) of section 267.21, Florida
12 Statutes, is renumbered as subsection (4), and a new subsection
13 (3) is added to that section, to read:
14 267.21 Historic Cemeteries Program.—
15 (3) Notwithstanding any other provision of law, if a
16 historic African-American cemetery recorded in the Florida
17 Master Site File pursuant to this section with excess vacant
18 land sells or enters into a contract to sell such land for the
19 express purpose of funding the cemetery's long-term maintenance
20 and upkeep, the county or municipality where such cemetery is
21 located must administratively approve an application to rezone
22 or change the land use designation of such land. A county or
23 municipality may use reasonable discretion in determining the
24 new zoning or land use designation, provided that the zoning or
25 land use designation is compatible with the surrounding area.

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26 Section 2. This act shall take effect July 1, 2026.

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COMMERCE COMMITTEE

CS/HB 425 by Rep. Aristide
Historic Cemeteries Program

AMENDMENT SUMMARY
February 26, 2026

Amendment #619057 by Rep. Aristide (Lines 22-25):
• Provides that the requirement for local governments to administratively approve an
application from a historic African-American cemetery to rezone or change the land use
designation of certain excess vacant land is for the purpose of allowing development
consistent and compatible with adjacent land uses.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 425 (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: Commerce Committee
2 Representative Aristide offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 22-25 and insert:
6 or change the land use designation of such land to allow
7 development consistent and compatible with adjacent land uses. A
8 county or municipality may use reasonable discretion in
9 determining the new zoning or land use designation, provided
10 that the zoning or land use designation is consistent and
11 compatible with the surrounding area.
12
13 -----------------------------------------------------
14 T I T L E A M E N D M E N T
15 Remove line 7 and insert:

619057 - h0425-line22.docx
Published On: 2/25/2026 5:41:39 PM
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 425 (2026)
Amendment No.

16 conditions to allow development consistent and
17 compatible with adjacent land uses; providing an
18 effective date.

619057 - h0425-line22.docx
Published On: 2/25/2026 5:41:39 PM
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CS/HB 527
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 527 COMPANION BILL: SB 202 (Bradley)
TITLE: Mandatory Human Reviews of Insurance Claim LINKED BILLS: None
Denials RELATED BILLS: None
SPONSOR(S): Cassel
Committee References
Insurance & Banking Commerce
18 Y, 0 N, As CS 

SUMMARY
Effect of the Bill:
The bill establishes a statutory framework governing the use of artificial intelligence (AI) in claims handling.
Specifically, the bill prohibits workers’ compensation carriers, insurers, and health maintenance organizations from
reducing a claim payment, denying a claim, or denying a portion of a claim based solely on the output of an AI
system, algorithm, or machine learning system. Instead, the bill requires a qualified human professional to make all
denial and claim payment reduction decisions after analyzing the claim independently of any AI system, machine
learning system, or algorithm. The bill also mandates detailed recordkeeping, certain disclosures in denial letters,
and updates to claims-handling manuals for workers’ compensation carriers, insurers, and health maintenance
organizations who use AI as part of their claims-handling process.

Fiscal or Economic Impact:
There is an indeterminate fiscal impact on the private sector.

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ANALYSIS
EFFECT OF THE BILL:
The bill regulates the use of artificial intelligence systems 1, machine learning systems 2, and algorithms 3 by
workers’ compensation carriers, insurers 4, and health maintenance organizations (HMOs) in their claims handling
process. It allows the use of these systems to assist in processing claims, but the bill prohibits the use of these
systems as the sole basis to reduce a claim payment, deny a claim, or deny a portion of a claim. (Sections 1, 2, and
3).

The bill requires that an individual with authority under the Florida Insurance Code to adjust or deny a claim must
be the person who makes decisions regarding the reduction of a claim payment or denial of a claim or a portion of
a claim. The bill requires this individual, called a “qualified human professional,” to:

1 The bill defines “artificial intelligence system” as a machine-based system that may have varying levels of autonomy and that

can, for a given set of objectives, generate outputs, such as predictions, recommendations, or content, influencing decisions
made in real or virtual environments.
2 The bill defines “machine learning system” as an artificial intelligence system that has the ability to learn from provided data

without being explicitly programmed.
3 The bill defines “algorithm” as a clearly specified mathematical process for computation which uses rules designed to give

prescribed results.
4 Section 2 of the bill applies to most authorized insurers except: reinsurance; policies or contracts not issued for delivery in

this state nor delivered in this state; wet marine and transportation insurance; title insurance; and credit life or credit
disability insurance.
STORAGE NAME: h0527b.COM
DATE: 2/24/2026
1
CS/HB 527
• analyze the claim independently of any AI system, machine learning system, or algorithm;
• review the accuracy of any output produced by an AI system, machine learning system, or algorithm; and
• determine that the claim or portion of the claim is not payable under the terms of the policy or contract and
should be denied, or that the claim payment should be reduced. (Sections 1, 2, and 3).

The bill also requires workers’ compensation carriers, insurers, and HMOs to maintain detailed records of claim
denials, including:
• the name, title, business address, and the unique identifier of the qualified human professional responsible
for the decision;
• the date and time of the decision; and
• documentation of the basis for reduction of the claim payment or claim denial, including any information
provided by any AI system, machine learning system, or algorithm. (Sections 1, 2, and 3).

Additionally, the bill requires workers’ compensation carriers, insurers, and HMOs to include the following in their
denial letters to policyholders:
• an email address, telephone number, business address, and unique identifier, in lieu of the name of the
qualified human professional who made the decision; and
• an affirmation that an AI system, machine learning system, or algorithm was not the sole basis for the
denial. (Sections 1, 2, and 3).

Workers’ compensation carriers, insurers, and HMOs who use AI systems, machine learning systems, or algorithms
as part of their claims handling process must update their claims handling manuals with details about how these
systems are used by the insurer and how those processes comply with the bill’s requirements. (Sections 1, 2, and
3).

The bill grants the Department of Financial Services (DFS) the authority to carry out market conduct examinations
and investigations of workers’ compensation carriers to verify compliance with the bill. (Section 1).

The bill imposes penalties for workers’ compensation carriers who violate the bill. (Section 1). These penalties
include administrative fines of up to $2,500 for each nonwillful violation not to exceed $10,000 for all nonwillful
violations arising out of the same action 5 and DFS may impose administrative fines of up to $20,000, not to exceed
$100,000 for all willful violations arising out of the same action. 6

The bill grants the Office of Insurance Regulation (OIR) the authority to carry out market conduct examinations
and investigations of the insurers and HMOs to verify compliance with the bill. (Sections 2 and 3).

The bill provides an effective date of July 1, 2026. (Section 4).

RULEMAKING:
The bill grants rulemaking authority to DFS and the Financial Services Commission to implement the statutory
framework regulating the use of artificial intelligence in claims handling by workers’ compensation carriers,
insurers, and HMOs created by this bill.

5 See s. 440.525, F.S.
6 Id.

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CS/HB 527
FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
Indeterminate fiscal impact. Insurance companies, workers’ compensation carriers, and HMOs that use AI systems,
machine learning systems, or algorithms may incur fiscal costs in order to comply with the bill.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Use of Artificial Intelligence Systems, Machine Learning Systems, and Algorithms by Insurers
Artificial intelligence is the development of computer systems to perform tasks that normally require human
intelligence, such as learning and decision-making. 7 It enables computer systems to receive information that is
either provided to them by others or gathered by them, which they can then process and respond to in some
meaningful way. To a certain extent, AI systems can adjust their behavior by analyzing the results of prior actions
and operating without direct human control. 8

The use of AI is becoming more prevalent across all industries, and major companies like IBM, Apple, Google, and
Amazon are using this technology internally and in their customer-facing products and services. 9 AI technologies
are increasingly being used in certain insurance operations, such as underwriting, customer service, marketing,
fraud detection, and claims handling. 10 A survey conducted by the National Association of Insurance
Commissioners (NAIC) found that out of 193 auto insurers surveyed, 88% reported either using or having plans to
use AI or machine learning systems. 11 Similarly, out of 194 home insurers who responded to the NAIC survey, 70%
of insurers either use or plan to use these systems. 12 The property and casualty insurers who were surveyed
reported using AI in claims handling to analyze accident images, to estimate claim settlement values, and to detect
fraud. 13

Workers’ compensation
Workers’ compensation is a no-fault system that provides disability and medical benefits and compensation for
lost wages when an employee is injured in the course of employment. 14 Employers must secure coverage, and may
do so by purchasing insurance from an authorized carrier, qualifying as a self-insurer, or purchasing coverage from
the Florida Workers’ Compensation Joint Underwriting Association, which is the state-sponsored insurer of last
resort. 15

Health Maintenance Organizations
Health maintenance organizations (HMOs) provide emergency care, inpatient hospital services, physician care,
ambulatory diagnostic treatment, and preventive health care services. 16 HMOs provide these services to
subscribers who pay for these services on a prepaid per capita or prepaid aggregate fixed-sum basis. 17 HMOs are

7 National Conference of State Legislatures (NCSL), Artificial Intelligence 2025 Legislation, July 10, 2025,

https://www.ncsl.org/technology-and-communication/artificial-intelligence-2025-legislation (last visited Jan. 29, 2026).
8 European Parliament, What is artificial intelligence and how is it used?, E.U. News, Jun. 20, 2023,

https://www.europarl.europa.eu/topics/en/article/20200827STO85804/what-is-artificial-intelligence-and-how-is-it-used
(last visited Jan. 29, 2026).
9 National Association of Insurance Commissioners (NAIC), Artificial Intelligence, Jan. 17, 2025,

http://content.naic.org/insurance-topics/artificial-intelligence (last visited Jan. 29, 2026).
10 Id.
11 Id.
12 Id.
13 Id.
14 S. 440.015, F.S.
15 Ss. 440.38 and 627.311(5), F.S.
16 S. 641.19, F.S.
17 Id.

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3
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required to obtain a certificate of authority from the Office of Insurance Regulation (OIR) to be able to operate in
Florida. 18

Florida Insurance Code
The Florida Insurance Code 19 provides the regulatory framework for admitted insurers in the state. Currently, the
Florida Insurance Code does not regulate the use of artificial intelligence by insurers. However, insurers are bound
by certain requirements relating to claims handling. For example, property insurers are required to develop a
claims-handling manual that provides guidelines for processing claims that comply with all the requirements of the
Florida Insurance Code, and it grants OIR the authority to request a copy of this manual. 20

The Florida Insurance Code provides penalties for violations of the code, including cease and desist authority by
OIR and the Department of Financial Services (DFS), administrative fines, restitution, and suspension or revocation
of the insurer’s certificate of authority. 21

Department of Financial Services
The Chief Financial Officer is a constitutional officer who is the head of DFS. DFS enforces certain provisions of the
Florida Insurance Code, including those related to insurance agents, insurance agencies, managing general agents,
insurance adjusters, reinsurance intermediaries, viatical settlement brokers, customer representatives, service
representatives, and agencies. 22 DFS oversees workers’ compensation carriers, including carrier responsibilities,
coverage requirements, claim procedures, timelines, and penalties. 23

Office of Insurance Regulation
The 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. 24 The OIR is responsible for examining the affairs, transactions,
accounts, records, and assets of each authorized insurer in the state. 25 As part of that process, insurers must make
available all records relating to the subject of the examination. 26 The OIR is also authorized to carry out market
conduct examinations to determine compliance with the Florida Insurance Code. 27

Financial Services Commission
The Financial Services Commission is composed of the Governor, the Chief Financial Officer, the Attorney General,
and the Commissioner of Agriculture and it serves as agency head of the OIR for purposes of rulemaking. 28 The
Financial Services Commission encompasses two offices: the OIR (responsible for insurers and risk bearing
entities) and the Office of Financial Regulation (responsible for the regulation of banks, credit unions, other
financial institutions, finance companies, and the securities industry). 29

18 S. 641.22, F.S.
19 See s. 624.01, F.S.
20 S. 627.4108, F.S.
21 See ss. 624.310, 624.418, and 624.4211, F.S.
22 S. 626.016, F.S.
23 Chapter 440, F.S.
24 S. 20.121(3)(a), F.S.
25 S. 624.316(1)(a), F.S.
26 S. 624.318(2), F.S.
27 S. 624.3161, F.S.
28 S. 20.121(3), F.S.
29 Id.

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BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking 18 Y, 0 N, As CS 12/9/2025 Brackett Miguez
Subcommittee
THE CHANGES ADOPTED BY THE • Expanded the scope of the bill to include workers’ compensation and
COMMITTEE: health maintenance organizations (HMOs).
• Explicitly allowed insurers, workers’ compensation carriers, and HMOs
to use algorithms, artificial intelligence systems, or machine learning
systems to assist in claims handling, including the generation of
recommendations to approve or deny a claim.
• Clarified that the qualified human professional is only required to
review denials, partial denials, and claims where the payment is
reduced.
• Created penalties for workers’ compensation carriers who violate the
bill’s requirements.
• Provided that insurers, workers’ compensation carriers, and HMOs
must provide the unique identifier of the qualified human professional
to the policyholder instead of the professional’s name.

Commerce Committee Hamon Miguez

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CS/HB 527 2026

1 A bill to be entitled
2 An act relating to mandatory human reviews of
3 insurance claim denials; creating s. 440.131, F.S.;
4 defining terms; authorizing workers' compensation
5 carriers to use algorithms, artificial intelligence
6 systems, and machine learning systems to assist in
7 processing claims; prohibiting the use of algorithms,
8 artificial intelligence, or machine learning systems
9 as the sole basis for determining whether to reduce a
10 claim payment or deny a claim or portion of a claim;
11 requiring that carriers' decisions to deny a claim or
12 portion of a claim or reduce a claim be made by
13 qualified human professionals; specifying the duties
14 of qualified human professionals; requiring a carrier
15 to maintain certain records; requiring carriers to
16 include certain information in denial communications
17 to claimants; requiring that certain carriers detail
18 certain information in their claims-handling manual;
19 authorizing the Department of Financial Services to
20 conduct examinations and investigations under certain
21 circumstances and to adopt rules; providing penalties;
22 creating s. 627.4263, F.S.; defining terms;
23 authorizing insurers to use algorithms, artificial
24 intelligence systems, and machine learning systems to
25 assist in processing claims; prohibiting the use of

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26 algorithms, artificial intelligence, or machine
27 learning systems as the sole basis for determining
28 whether to reduce a claim payment or deny a claim or
29 portion of a claim; requiring that insurers' decisions
30 to deny a claim or portion of a claim or reduce a
31 claim be made by qualified human professionals;
32 specifying the duties of qualified human
33 professionals; requiring an insurer to maintain
34 certain records; requiring insurers to include certain
35 information in denial communications to claimants;
36 requiring that certain insurers detail certain
37 information in their claims-handling manual;
38 authorizing the Office of Insurance Regulation to
39 conduct market conduct examinations and investigations
40 under certain circumstances; authorizing the Financial
41 Services Commission to adopt rules; creating s.
42 641.31091, F.S.; defining terms; authorizing health
43 maintenance organizations to use algorithms,
44 artificial intelligence systems, and machine learning
45 systems to assist in processing claims; prohibiting
46 the use of algorithms, artificial intelligence, or
47 machine learning systems as the sole basis for
48 determining whether to reduce a claim payment or deny
49 a claim or portion of a claim; requiring that health
50 maintenance organizations' decisions to deny a claim

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51 or reduce a claim or portion of a claim be made by
52 qualified human professionals; specifying the duties
53 of qualified human professionals; requiring a health
54 maintenance organization to maintain certain records;
55 requiring health maintenance organizations to include
56 certain information in denial communications to
57 claimants; requiring that certain health maintenance
58 organizations detail certain information in their
59 claims-handling manual; authorizing the office to
60 conduct market conduct examinations and investigations
61 under certain circumstances; authorizing the
62 commission to adopt rules; providing an effective
63 date.
64
65 Be It Enacted by the Legislature of the State of Florida:
66
67 Section 1. Section 440.131, Florida Statutes, is created
68 to read:
69 440.131 Mandatory human reviews of claim denials.—
70 (1) As used in this section, the term:
71 (a) "Algorithm" means a clearly specified mathematical
72 process for computation which uses rules designed to give
73 prescribed results.
74 (b) "Artificial intelligence system" means a machine-based
75 system that may have varying levels of autonomy and that can,

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76 for a given set of objectives, generate outputs, such as
77 predictions, recommendations, or content, influencing decisions
78 made in real or virtual environments.
79 (c) "Machine learning system" means an artificial
80 intelligence system that has the ability to learn from provided
81 data without being explicitly programmed.
82 (d) "Qualified human professional" means an individual
83 who, under the Florida Insurance Code, has the authority to
84 adjust or deny a claim or a portion of a claim and may exercise
85 such authority over a particular claim.
86 (2) A carrier may use an algorithm, an artificial
87 intelligence system, or a machine learning system to assist in
88 processing claims, including generating recommendations to
89 approve or deny a claim or a portion of a claim, in accordance
90 with this section.
91 (3) A decision to reduce a claim payment or deny a claim
92 or a portion of a claim may not be made solely on the basis of
93 an algorithm, an artificial intelligence system, or a machine
94 learning system. A carrier's decision to reduce a claim payment
95 or deny a claim or a portion of a claim must be made by a
96 qualified human professional.
97 (4) If an algorithm, an artificial intelligence system, or
98 a machine learning system assists in processing a claim, the
99 qualified human professional must do all of the following before
100 reducing a claim payment or denying the claim or a portion of

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101 the claim:
102 (a) Analyze the facts of the claim and the terms of the
103 insurance policy independently of any artificial intelligence
104 system, machine learning system, or algorithm.
105 (b) Review the accuracy of any output generated by such a
106 system or algorithm.
107 (c) Determine that the claim or portion of the claim is
108 not payable under the terms of the insurance policy and should
109 be denied or that the claim payment should be reduced.
110 (5) A carrier shall maintain detailed records of the
111 actions of qualified human professionals who are required to
112 perform the actions under subsection (4), including:
113 (a) The name, the title, the business address, and the
114 unique identifier associated with the name of the qualified
115 human professional who made the decision to reduce the claim
116 payment or deny the claim or a portion of the claim.
117 (b) The date and time of the qualified human
118 professional's decision.
119 (c) Documentation of the basis for the reduction of the
120 claim payment or denial of the claim or a portion of the claim,
121 including any information provided by an algorithm, an
122 artificial intelligence system, or a machine learning system.
123 (6) In all written denial communications to an injured
124 employee, a carrier shall include:
125 (a) An e-mail address, a telephone number, a business

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126 address, and a unique identifier, in lieu of the name of the
127 qualified human professional who made the decision to reduce the
128 claim payment or deny the claim or a portion of the claim; and
129 (b) A written statement affirming that an algorithm, an
130 artificial intelligence system, or a machine learning system did
131 not serve as the sole basis for determining whether to reduce
132 the claim payment or deny the claim or a portion of the claim.
133 (7) A carrier that uses an algorithm, an artificial
134 intelligence system, or a machine learning system as part of its
135 claims-handling process shall detail in its claims-handling
136 manual the manner in which such algorithms or systems are to be
137 used and the manner in which the carrier complies with this
138 section.
139 (8) The department may conduct examinations and
140 investigations it deems necessary to verify compliance with this
141 section.
142 (9) The department may adopt rules to implement this
143 section.
144 (10) Failure to comply with this section shall be
145 considered a violation of this chapter and is subject to
146 penalties as provided for in s. 440.525.
147 Section 2. Section 627.4263, Florida Statutes, is created
148 to read:
149 627.4263 Mandatory human reviews of claim denials.—
150 (1) As used in this section, the term:

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151 (a) "Algorithm" means a clearly specified mathematical
152 process for computation which uses rules designed to give
153 prescribed results.
154 (b) "Artificial intelligence system" means a machine-based
155 system that may have varying levels of autonomy and that can,
156 for a given set of objectives, generate outputs, such as
157 predictions, recommendations, or content, influencing decisions
158 made in real or virtual environments.
159 (c) "Machine learning system" means an artificial
160 intelligence system that has the ability to learn from provided
161 data without being explicitly programmed.
162 (d) "Qualified human professional" means an individual
163 who, under the Florida Insurance Code, has the authority to
164 adjust or deny a claim or a portion of a claim and may exercise
165 such authority over a particular claim.
166 (2) An insurer may use an algorithm, artificial
167 intelligence system, or machine learning system to assist in
168 processing claims, including generating recommendations to
169 approve or deny a claim or a portion of a claim, in accordance
170 with this section.
171 (3) A decision to reduce a claim payment or deny a claim
172 or a portion of a claim may not be made solely on the basis of
173 an algorithm, an artificial intelligence system, or a machine
174 learning system. An insurer's decision to reduce a claim payment
175 or deny a claim or a portion of a claim must be made by a

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176 qualified human professional.
177 (4) If an algorithm, an artificial intelligence system, or
178 a machine learning system assists in processing a claim, the
179 qualified human professional must do all of the following before
180 reducing a claim payment or denying the claim or a portion of
181 the claim:
182 (a) Analyze the facts of the claim and the terms of the
183 insurance policy independently of any artificial intelligence
184 system, machine learning system, or algorithm.
185 (b) Review the accuracy of any output generated by such a
186 system or algorithm.
187 (c) Determine that the claim or portion of the claim is
188 not payable under the terms of the insurance policy and should
189 be denied or that the claim payment should be reduced.
190 (5) An insurer shall maintain detailed records of the
191 actions of qualified human professionals who are required to
192 perform the actions under subsection (4), including:
193 (a) The name, the title, the business address, and the
194 unique identifier associated with the name of the qualified
195 human professional who made the decision to reduce the claim
196 payment or deny the claim or a portion of the claim.
197 (b) The date and time of the qualified human
198 professional's decision.
199 (c) Documentation of the basis for the reduction of the
200 claim payment or denial of the claim or a portion of the claim,

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201 including any information provided by an algorithm, an
202 artificial intelligence system, or a machine learning system.
203 (6) In all written denial communications to an insured, an
204 insurer shall include:
205 (a) An e-mail address, a telephone number, a business
206 address, and a unique identifier, in lieu of the name of the
207 qualified human professional who made the decision to reduce the
208 claim payment or deny the claim or a portion of the claim; and
209 (b) A written statement affirming that an algorithm, an
210 artificial intelligence system, or a machine learning system did
211 not serve as the sole basis for determining whether to reduce
212 the claim payment or deny the claim or a portion of the claim.
213 (7) An insurer that uses an algorithm, an artificial
214 intelligence system, or a machine learning system as part of its
215 claims-handling process shall detail in its claims-handling
216 manual the manner in which such algorithms or systems are to be
217 used and the manner in which the insurer complies with this
218 section.
219 (8) The office may conduct market conduct examinations and
220 investigations it deems necessary to verify compliance with this
221 section.
222 (9) The commission may adopt rules to implement this
223 section.
224 Section 3. Section 641.31091, Florida Statutes, is created
225 to read:

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226 641.31091 Mandatory human reviews of claim denials.—
227 (1) As used in this section, the term:
228 (a) "Algorithm" means a clearly specified mathematical
229 process for computation which uses rules designed to give
230 prescribed results.
231 (b) "Artificial intelligence system" means a machine-based
232 system that may have varying levels of autonomy and that can,
233 for a given set of objectives, generate outputs, such as
234 predictions, recommendations, or content, influencing decisions
235 made in real or virtual environments.
236 (c) "Machine learning system" means an artificial
237 intelligence system that has the ability to learn from provided
238 data without being explicitly programmed.
239 (d) "Qualified human professional" means an individual
240 who, under the Florida Insurance Code, has the authority to
241 adjust or deny a claim or a portion of a claim and may exercise
242 such authority over a particular claim.
243 (2) A health maintenance organization may use an
244 algorithm, an artificial intelligence system, or a machine
245 learning system to assist in processing claims, including
246 generating recommendations to approve or deny a claim or a
247 portion of a claim, in accordance with this section.
248 (3) A decision to reduce a claim payment or deny a claim
249 or a portion of a claim may not be made solely on the basis of
250 an algorithm, artificial intelligence system, or machine

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 527 2026

251 learning system. A health maintenance organization's decision to
252 reduce a claim payment or deny a claim or a portion of a claim
253 must be made by a qualified human professional.
254 (4) If an algorithm, an artificial intelligence system, or
255 a machine learning system assists in processing a claim, the
256 qualified human professional must do all of the following before
257 reducing a claim payment or denying the claim or a portion of
258 the claim:
259 (a) Analyze the facts of the claim and the terms of the
260 health maintenance contract independently of any artificial
261 intelligence system, machine learning system, or algorithm.
262 (b) Review the accuracy of any output generated by such a
263 system or algorithm.
264 (c) Determine that the claim or portion of the claim is
265 not payable under the terms of the health maintenance contract
266 and should be denied or that the claim payment should be
267 reduced.
268 (5) A health maintenance organization shall maintain
269 detailed records of the actions of qualified human professionals
270 who are required to perform the actions under subsection (4),
271 including:
272 (a) The name, the title, the business address, and the
273 unique identifier associated with the name of the qualified
274 human professional who made the decision to reduce the claim
275 payment or deny the claim or a portion of the claim.

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CS/HB 527 2026

276 (b) The date and time of the qualified human
277 professional's decision.
278 (c) Documentation of the basis for the reduction of the
279 claim payment or denial of the claim or a portion of the claim,
280 including any information provided by an algorithm, an
281 artificial intelligence system, or a machine learning system.
282 (6) In all written denial communications to a subscriber,
283 a health maintenance organization shall include:
284 (a) An e-mail address, a telephone number, a business
285 address, and a unique identifier, in lieu of the name of the
286 qualified human professional who made the decision to reduce the
287 claim payment or deny the claim or a portion of the claim; and
288 (b) A written statement affirming that an algorithm, an
289 artificial intelligence system, or a machine learning system did
290 not serve as the sole basis for determining whether to reduce
291 the claim payment or deny the claim or a portion of the claim.
292 (7) A health maintenance organization that uses an
293 algorithm, an artificial intelligence system, or a machine
294 learning system as part of its claims-handling process shall
295 detail in its claims-handling manual the manner in which such
296 algorithms or systems are to be used and the manner in which the
297 health maintenance organization complies with this section.
298 (8) The office may conduct market conduct examinations and
299 investigations or use any method it deems necessary to verify
300 compliance with this section.

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301 (9) The commission may adopt rules to implement this
302 section.
303 Section 4. This act shall take effect July 1, 2026.

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hb527-01-c1
COMMERCE COMMITTEE

CS/HB 527 by Rep. Cassel
Mandatory Human Reviews of Insurance Claim Denials

AMENDMENT SUMMARY
February 26, 2026

Amendment #724241 by Rep. Cassel (strike-all):
• Removes the definition of, and references to, “algorithm.”
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (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: Commerce Committee
2 Representative Cassel offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Section 440.131, Florida Statutes, is created
7 to read:
8 440.131 Mandatory human reviews of claim denials.—
9 (1) As used in this section, the term:
10 (a) "Artificial intelligence system" means a machine-based
11 system that may have varying levels of autonomy and that can,
12 for a given set of objectives, generate outputs, such as
13 predictions, recommendations, or content, influencing decisions
14 made in real or virtual environments.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No.

15 (b) "Machine learning system" means an artificial
16 intelligence system that has the ability to learn from provided
17 data without being explicitly programmed.
18 (c) "Qualified human professional" means an individual
19 who, under the Florida Insurance Code, has the authority to
20 adjust or deny a claim or a portion of a claim and may exercise
21 such authority over a particular claim.
22 (2) A carrier may use an artificial intelligence system or
23 a machine learning system to assist in processing claims,
24 including generating recommendations to approve or deny a claim
25 or a portion of a claim, in accordance with this section.
26 (3) A decision to reduce a claim payment or deny a claim
27 or a portion of a claim may not be made solely on the basis of
28 an artificial intelligence system or a machine learning system.
29 A carrier's decision to reduce a claim payment or deny a claim
30 or a portion of a claim must be made by a qualified human
31 professional.
32 (4) If an artificial intelligence system or a machine
33 learning system assists in processing a claim, the qualified
34 human professional must do all of the following before reducing
35 a claim payment or denying the claim or a portion of the claim:
36 (a) Analyze the facts of the claim and the terms of the
37 insurance policy independently of any artificial intelligence
38 system or machine learning system.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

39 (b) Review the accuracy of any output generated by such a
40 system.
41 (c) Determine that the claim or portion of the claim is
42 not payable under the terms of the insurance policy and should
43 be denied or that the claim payment should be reduced.
44 (5) A carrier shall maintain detailed records of the
45 actions of qualified human professionals who are required to
46 perform the actions under subsection (4), including:
47 (a) The name, the title, the business address, and the
48 unique identifier associated with the name of the qualified
49 human professional who made the decision to reduce the claim
50 payment or deny the claim or a portion of the claim.
51 (b) The date and time of the qualified human
52 professional's decision.
53 (c) Documentation of the basis for the reduction of the
54 claim payment or denial of the claim or a portion of the claim,
55 including any information provided by an artificial intelligence
56 system or a machine learning system.
57 (6) In all written denial communications to an injured
58 employee, a carrier shall include:
59 (a) An e-mail address, a telephone number, a business
60 address, and a unique identifier, in lieu of the name of the
61 qualified human professional who made the decision to reduce the
62 claim payment or deny the claim or a portion of the claim; and

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

63 (b) A written statement affirming that an artificial
64 intelligence system or a machine learning system did not serve
65 as the sole basis for determining whether to reduce the claim
66 payment or deny the claim or a portion of the claim.
67 (7) A carrier that uses an artificial intelligence system
68 or a machine learning system as part of its claims-handling
69 process shall detail in its claims-handling manual the manner in
70 which such systems are to be used and the manner in which the
71 carrier complies with this section.
72 (8) The department may conduct examinations and
73 investigations it deems necessary to verify compliance with this
74 section.
75 (9) The department may adopt rules to implement this
76 section.
77 (10) Failure to comply with this section shall be
78 considered a violation of this chapter and is subject to
79 penalties as provided for in s. 440.525.
80 Section 2. Section 627.4263, Florida Statutes, is created
81 to read:
82 627.4263 Mandatory human reviews of claim denials.—
83 (1) As used in this section, the term:
84 (a) "Artificial intelligence system" means a machine-based
85 system that may have varying levels of autonomy and that can,
86 for a given set of objectives, generate outputs, such as

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

87 predictions, recommendations, or content, influencing decisions
88 made in real or virtual environments.
89 (b) "Machine learning system" means an artificial
90 intelligence system that has the ability to learn from provided
91 data without being explicitly programmed.
92 (c) "Qualified human professional" means an individual
93 who, under the Florida Insurance Code, has the authority to
94 adjust or deny a claim or a portion of a claim and may exercise
95 such authority over a particular claim.
96 (2) An insurer may use an artificial intelligence system
97 or machine learning system to assist in processing claims,
98 including generating recommendations to approve or deny a claim
99 or a portion of a claim, in accordance with this section.
100 (3) A decision to reduce a claim payment or deny a claim
101 or a portion of a claim may not be made solely on the basis of
102 an artificial intelligence system or a machine learning system.
103 An insurer's decision to reduce a claim payment or deny a claim
104 or a portion of a claim must be made by a qualified human
105 professional.
106 (4) If an artificial intelligence system or a machine
107 learning system assists in processing a claim, the qualified
108 human professional must do all of the following before reducing
109 a claim payment or denying the claim or a portion of the claim:

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

110 (a) Analyze the facts of the claim and the terms of the
111 insurance policy independently of any artificial intelligence
112 system or machine learning system.
113 (b) Review the accuracy of any output generated by such a
114 system.
115 (c) Determine that the claim or portion of the claim is
116 not payable under the terms of the insurance policy and should
117 be denied or that the claim payment should be reduced.
118 (5) An insurer shall maintain detailed records of the
119 actions of qualified human professionals who are required to
120 perform the actions under subsection (4), including:
121 (a) The name, the title, the business address, and the
122 unique identifier associated with the name of the qualified
123 human professional who made the decision to reduce the claim
124 payment or deny the claim or a portion of the claim.
125 (b) The date and time of the qualified human
126 professional’s decision.
127 (c) Documentation of the basis for the reduction of the
128 claim payment or denial of the claim or a portion of the claim,
129 including any information provided by an artificial intelligence
130 system or a machine learning system.
131 (6) In all written denial communications to an insured, an
132 insurer shall include:
133 (a) An e-mail address, a telephone number, a business
134 address, and a unique identifier, in lieu of the name of the
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

135 qualified human professional who made the decision to reduce the
136 claim payment or deny the claim or a portion of the claim; and
137 (b) A written statement affirming that an artificial
138 intelligence system or a machine learning system did not serve
139 as the sole basis for determining whether to reduce the claim
140 payment or deny the claim or a portion of the claim.
141 (7) An insurer that uses an artificial intelligence system
142 or a machine learning system as part of its claims-handling
143 process shall detail in its claims-handling manual the manner in
144 which such systems are to be used and the manner in which the
145 insurer complies with this section.
146 (8) The office may conduct market conduct examinations and
147 investigations it deems necessary to verify compliance with this
148 section.
149 (9) The commission may adopt rules to implement this
150 section.
151 Section 3. Section 641.31091, Florida Statutes, is created
152 to read:
153 641.31091 Mandatory human reviews of claim denials.—
154 (1) As used in this section, the term:
155 (a) "Artificial intelligence system" means a machine-based
156 system that may have varying levels of autonomy and that can,
157 for a given set of objectives, generate outputs, such as
158 predictions, recommendations, or content, influencing decisions
159 made in real or virtual environments.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

160 (b) "Machine learning system" means an artificial
161 intelligence system that has the ability to learn from provided
162 data without being explicitly programmed.
163 (c) "Qualified human professional" means an individual
164 who, under the Florida Insurance Code, has the authority to
165 adjust or deny a claim or a portion of a claim and may exercise
166 such authority over a particular claim.
167 (2) A health maintenance organization may use an
168 artificial intelligence system or a machine learning system to
169 assist in processing claims, including generating
170 recommendations to approve or deny a claim or a portion of a
171 claim, in accordance with this section.
172 (3) A decision to reduce a claim payment or deny a claim
173 or a portion of a claim may not be made solely on the basis of
174 an artificial intelligence system or machine learning system. A
175 health maintenance organization's decision to reduce a claim
176 payment or deny a claim or a portion of a claim must be made by
177 a qualified human professional.
178 (4) If an artificial intelligence system or a machine
179 learning system assists in processing a claim, the qualified
180 human professional must do all of the following before reducing
181 a claim payment or denying the claim or a portion of the claim:
182 (a) Analyze the facts of the claim and the terms of the
183 health maintenance contract independently of any artificial
184 intelligence system or machine learning system.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

185 (b) Review the accuracy of any output generated by such a
186 system.
187 (c) Determine that the claim or portion of the claim is
188 not payable under the terms of the health maintenance contract
189 and should be denied or that the claim payment should be
190 reduced.
191 (5) A health maintenance organization shall maintain
192 detailed records of the actions of qualified human professionals
193 who are required to perform the actions under subsection (4),
194 including:
195 (a) The name, the title, the business address, and the
196 unique identifier associated with the name of the qualified
197 human professional who made the decision to reduce the claim
198 payment or deny the claim or a portion of the claim.
199 (b) The date and time of the qualified human
200 professional's decision.
201 (c) Documentation of the basis for the reduction of the
202 claim payment or denial of the claim or a portion of the claim,
203 including any information provided by an artificial intelligence
204 system or a machine learning system.
205 (6) In all written denial communications to a subscriber,
206 a health maintenance organization shall include:
207 (a) An e-mail address, a telephone number, a business
208 address, and a unique identifier, in lieu of the name of the

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

209 qualified human professional who made the decision to reduce the
210 claim payment or deny the claim or a portion of the claim; and
211 (b) A written statement affirming that an artificial
212 intelligence system or a machine learning system did not serve
213 as the sole basis for determining whether to reduce the claim
214 payment or deny the claim or a portion of the claim.
215 (7) A health maintenance organization that uses an
216 artificial intelligence system or a machine learning system as
217 part of its claims-handling process shall detail in its claims-
218 handling manual the manner in which such systems are to be used
219 and the manner in which the health maintenance organization
220 complies with this section.
221 (8) The office may conduct market conduct examinations and
222 investigations or use any method it deems necessary to verify
223 compliance with this section.
224 (9) The commission may adopt rules to implement this
225 section.
226 Section 4. This act shall take effect July 1, 2026.
227
228 -----------------------------------------------------
229 T I T L E A M E N D M E N T
230 Remove everything before the enacting clause and insert:
231 An act relating to mandatory human reviews of
232 insurance claim denials; creating s. 440.131, F.S.;
233 defining terms; authorizing workers' compensation
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

234 carriers to use artificial intelligence systems and
235 machine learning systems to assist in processing
236 claims; prohibiting the use of artificial intelligence
237 or machine learning systems as the sole basis for
238 determining whether to reduce a claim payment or deny
239 a claim or portion of a claim; requiring that
240 carriers' decisions to deny a claim or portion of a
241 claim or reduce a claim be made by qualified human
242 professionals; specifying the duties of qualified
243 human professionals; requiring a carrier to maintain
244 certain records; requiring carriers to include certain
245 information in denial communications to claimants;
246 requiring that certain carriers detail certain
247 information in their claims-handling manual;
248 authorizing the Department of Financial Services to
249 conduct examinations and investigations under certain
250 circumstances and to adopt rules; providing penalties;
251 creating s. 627.4263, F.S.; defining terms;
252 authorizing insurers to use artificial intelligence
253 systems and machine learning systems to assist in
254 processing claims; prohibiting the use of artificial
255 intelligence or machine learning systems as the sole
256 basis for determining whether to reduce a claim
257 payment or deny a claim or portion of a claim;
258 requiring that insurers' decisions to deny a claim or
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

259 portion of a claim or reduce a claim be made by
260 qualified human professionals; specifying the duties
261 of qualified human professionals; requiring an insurer
262 to maintain certain records; requiring insurers to
263 include certain information in denial communications
264 to claimants; requiring that certain insurers detail
265 certain information in their claims-handling manual;
266 authorizing the Office of Insurance Regulation to
267 conduct market conduct examinations and investigations
268 under certain circumstances; authorizing the Financial
269 Services Commission to adopt rules; creating s.
270 641.31091, F.S.; defining terms; authorizing health
271 maintenance organizations to use artificial
272 intelligence systems and machine learning systems to
273 assist in processing claims; prohibiting the use of
274 artificial intelligence or machine learning systems as
275 the sole basis for determining whether to reduce a
276 claim payment or deny a claim or portion of a claim;
277 requiring that health maintenance organizations'
278 decisions to deny a claim or reduce a claim or portion
279 of a claim be made by qualified human professionals;
280 specifying the duties of qualified human
281 professionals; requiring a health maintenance
282 organization to maintain certain records; requiring
283 health maintenance organizations to include certain
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 527 (2026)
Amendment No.

284 information in denial communications to claimants;
285 requiring that certain health maintenance
286 organizations detail certain information in their
287 claims-handling manual; authorizing the office to
288 conduct market conduct examinations and investigations
289 under certain circumstances; authorizing the
290 commission to adopt rules; providing an effective
291 date.

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CS/HB 637
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 637 COMPANION BILL: SB 386 (Trumbull)
TITLE: Farm Equipment LINKED BILLS: None
SPONSOR(S): Griffitts RELATED BILLS: None
Committee References
Housing, Agriculture & Tourism Civil Justice & Claims Commerce
15 Y, 0 N, As CS  14 Y, 0 N 

SUMMARY
Effect of the Bill:
The bill requires a manufacturer of farm equipment to make repairs to conform the equipment to applicable express
warranty standards, or replace or refund such equipment if the manufacturer or its authorized dealer fails to conform
the farm equipment after a reasonable number of attempts, if a consumer reports the defective or non-conforming
farm equipment to the manufacturer within one year of the original delivery date or within the warranty period.

The bill provides affirmative defenses and allows consumers to bring civil actions for enforcement.

Fiscal or Economic Impact:
The bill may have a positive fiscal impact on owners of nonconforming farm equipment who may be able to get the
equipment fixed or replaced. The bill may have a negative fiscal impact on farm equipment manufacturers that may
need to fix or replace more farm equipment.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill amends s. 604.04, F.S., farm equipment, to create Florida’s farm equipment lemon law. (Section 1)

The bill provides that if farm equipment is defective and does not conform to all applicable express written
warranties, the consumer may report the defect to the manufacturer or its authorized service agent during the
manufacturer's warranty period or during the 1-year period following the original delivery date of the farm
equipment to the consumer to allow the manufacturer or its authorized agent the opportunity to conform the farm
equipment to the warranty. Upon receipt of such report, the manufacturer or its authorized agent must make such
repairs as are necessary to conform the equipment to the warranty. Such repairs must be at no cost to the
consumer. (Section 1)

The bill requires the manufacturer or its authorized agent to replace the farm equipment with comparable farm
equipment, or accept the return of the defective farm equipment from the consumer and refund the consumer the
cash purchase price, including sales tax, license fees, registration fees, and any similar governmental charges if the
manufacturer or its authorized dealer is not able to or otherwise fails to conform the farm equipment to any
applicable express written warranty after a reasonable number of attempts. (Section 1)

The bill provides a presumption that the manufacturer has made a reasonable number of attempts to conform the
farm equipment to the applicable express warranties if the same nonconformity has been the subject of repair
three or more times by the manufacturer or its authorized agent but the nonconformity continues to exist. This
presumption applies to a manufacturer only if the manufacturer or its authorized agent has received prior direct

STORAGE NAME: h0637d.COM
DATE: 2/24/2026
1
CS/HB 637
written notification from or on behalf of the consumer and been offered an opportunity to cure the alleged defect.
(Section 1)

The bill requires all reasonable attempts to conform the farm equipment to the warranty by the manufacturer to be
made within 18 months after the consumer reports the defect to the manufacturer. (Section 1)

The bill provides an affirmative defense for the manufacturer for any claim brought under the bill if:
• An alleged nonconformity does not substantially impair the farm equipment's use and market value; or
• A nonconformity is the result of abuse or neglect, or of modifications or alterations of the farm equipment
not authorized by the manufacturer.

The bill provides that the bill may not be construed to limit or impair the rights or remedies which are otherwise
available to a consumer under Ch. 681, F.S. (Section 1)

The bill allows any consumer who suffers a loss by reason of a violation of the bill, to bring a civil action to enforce
such provision. (Section 1)

The bill defines “farm equipment” as all power-drawn, power-driven, or self-propelled equipment used on a farm
or used to transport farm products. (Section 1)

The bill makes conforming changes. (Section 1)

The bill has an effective date of July 1, 2026. (Section 2)

FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill may have a positive fiscal impact on owners of nonconforming farm equipment who may be able to get the
equipment fixed or replaced. The bill may have a negative fiscal impact on farm equipment manufacturers that may
need to fix or replace more farm equipment.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
General Agricultural Laws

Chapter 604, F.S., addresses general agricultural laws, including surveys, 1 limited agriculture associations, 2 and
dealers in agricultural products. 3

Farm Equipment

Section 604.40, F.S., provides that, notwithstanding any other law, ordinance, rule, or policy to the contrary, all
power-drawn, power-driven, or self-propelled equipment used on a farm or used to transport farm products may

1 This is a program undertaken by state and local officials to survey and map the soils of Florida. S. 604.01, F.S.
2 Any three or more persons engaged in agricultural pursuits may form a limited agricultural association to encourage efficient

and progressive agriculture and to enable the farmers of Florida to enjoy the manifold benefits of joint and collective effort
without personal liability and the expense and technical involvements of corporate structure. Ss. 604.09 and 604.10, F.S.
3 A “dealer in agricultural products” is any person, partnership, corporation, or other business entity in the business of

purchasing, receiving, or soliciting agricultural products from the producer or the producer’s agent or representative for
resale or processing for sale; acting as an agent for such producer in the sale of agricultural products for the account of the
producer on a net return basis; or acting as a negotiating broker between the producer or the producer’s agent or
representative and the buyer. S. 604.15, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
CS/HB 637
be stored, maintained, or repaired by the owner within the boundaries of the owner’s farm and at least 50 feet
away from any public road without limitation. However, this provision does not apply to farm equipment that is
used in urban agriculture, which is any new or existing noncommercial agricultural uses on land that is: 4
• Within a dense urban land area,
• Not classified as agricultural,
• Not zoned as agricultural as its principal use, and
• Designated by a municipality for inclusion in an approved urban agricultural pilot project.

Farm Equipment Lemon Laws

Farm equipment is not generally covered under federal consumer warranty law, the Magnuson-Moss Warranty
Act, 5 which only covers warranties for products normally used for personal, family, or household purposes. 6

Due to consumer complaints, some states have passed specific “lemon laws” for farm equipment. Under these laws,
an owner of farm equipment has a legal remedy when the farm equipment has a nonconformity from the warranty
which has not been repaired within a reasonable number of attempts. The basic structure of a farm equipment
lemon law is similar to a motor vehicle lemon law, which mandates re-purchase or replacement of the product if it
has a nonconformity that has not been repaired within a reasonable number of attempts. Some states provide a
presumption of the reasonable number of attempts to repair, or they limit the repair attempts to a specific number
of days out of service. Additionally, some farm equipment lemon laws require a consumer to give the manufacturer
notice to make a final repair attempt before the consumer may seek legal relief. 7

Motor Vehicle Warranty Enforcement Act

Chapter 681, F.S., the Motor Vehicle Warranty Enforcement Act, 8 or “lemon law,” provides remedies for consumers
who purchase or lease new motor vehicles with a defect or condition not conforming to the express warranty 9 that
substantially impairs the use, value, or safety of a motor vehicle 10 that has not been corrected within a reasonable
number of attempts 11 by the manufacturer. 12

A manufacturer of a motor vehicle notified of a defect in the vehicle by the consumer within 24 months 13 of the
delivery of the vehicle to the consumer must make repairs to the vehicle so that it conforms to the warranty on the
vehicle. 14 After three attempts to repair the vehicle, the consumer must provide written notice to the manufacturer
by certified or express mail allowing the manufacturer one final chance to repair the vehicle. 15

4 The term does not include vegetable gardens for personal consumption on residential properties. S. 604.73, F.S.
5 15 U.S.C. §2301.
6 Richard Stuhlbarg and Adele Karoum, Is That Tractor Really a Lemon? A Look at State Legislation, Ag Innovator, 2019,

https://www.farmequip.org/agi/2019-summer/is-that-tractor-really-a-lemon/ (last visited Feb. 9, 2026).
7 Id.
8 S. 681.10, F.S.
9 See s. 681.104, F.S.
10 This does not include a defect or condition that results from an accident, abuse, neglect, modification, or alteration of the

motor vehicle by persons other than the manufacturer or its authorized service agent. S. 681.102, F.S.
11 See id. Section 681.104, F.S., provides that a “reasonable” number of attempts is three or more unsuccessful attempts for the

same nonconformity, as well as allowing the manufacturer one final attempt after receiving written notification from the
consumer by registered or express mail.
12 Section 681.102(13), F.S., defines “manufacturer” as any person, whether a resident or nonresident of Florida, who

manufactures or assembles motor vehicles, or who manufactures or assembles chassis for recreational vehicles, or who
manufactures or installs on previously assembled truck or recreational vehicle chassis special bodies or equipment which,
when installed, forms an integral part of the motor vehicle, or a “distributor” or an “importer” as those terms are defined in s.
320.60, F.S. A “dealer” as defined in s. 320.60, F.S. may not be deemed to be a manufacturer, a distributor, or an importer.
13 This is called the “lemon law rights period.” See s. 681.102(9), F.S.
14 S. 681.103(1), F.S.
15 S. 681.104(1), F.S.

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3
CS/HB 637

If the manufacturer cannot repair the vehicle to conform to the warranty after this final attempt, the manufacturer,
within 40 days, must either repurchase the vehicle and refund the full purchase price to the consumer, less a
reasonable offset for use, 16 or if the consumer pays a reasonable offset for use, replace the vehicle with a vehicle
acceptable to the consumer. 17

A violation by a manufacturer of the “lemon law” is considered an unfair or deceptive trade practice. 18 Additionally,
a consumer may file an action to recover damages caused by a violation of the “lemon law,” and the court must
award a consumer who prevails in such action the amount of any pecuniary loss, litigation costs, reasonable
attorney’s fees, and appropriate equitable relief. 19

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Housing, Agriculture & Tourism 15 Y, 0 N, As CS 1/21/2026 Curtin Wright
Subcommittee
THE CHANGES ADOPTED BY THE • Required all reasonable attempts to conform the farm equipment to
COMMITTEE: the warranty by the manufacturer must be made within 18 months
after the consumer reports the defect to the manufacturer.
• Made a technical change.
Civil Justice & Claims 14 Y, 0 N 2/18/2026 Jones Fronczak
Subcommittee
Commerce Committee Hamon Wright

16 “Reasonable offset for use” means the number of miles attributable to a consumer up to the date of a settlement agreement

or arbitration hearing, whichever occurs first, multiplied by the base selling or sale price of the vehicle as reflected on the
purchase invoice, exclusive of taxes, government fees, and dealer fees, or in the case of a lease, the agreed upon value as
reflected in the lease agreement and divided by 120,000, except in the case of a recreational vehicle, in which event it shall be
divided by 60,000. S. 681.102(19), F.S.
17 If a manufacturer establishes a procedure that the Department of Legal Affairs (DLA) certifies as complying with the

informal dispute settlement procedures in the Code of Federal Regulations and informs the consumer about how to file a
claim, the consumer must follow that procedure before he or she may either receive a refund or a replacement vehicle. Ss.
681.104(2)(a) and 681.108(1), F.S. See 16 C.F.R. part 703.
18 S. 681.111, F.S.
19 S. 681.112(1), F.S. An action must be commenced within 1 year after the expiration of the lemon law rights period.

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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

CS/HB 637 2026

1 A bill to be entitled
2 An act relating to farm equipment; amending s. 604.40,
3 F.S.; defining the term "farm equipment"; conforming
4 provisions to changes made by the act; authorizing a
5 consumer to report farm equipment that is defective
6 and does not conform to specified warranties to the
7 manufacturer or its authorized service agent during a
8 specified timeframe to allow the manufacturer or its
9 authorized agent to conform such farm equipment to
10 such warranty; requiring the manufacturer or its
11 authorized agent to make such repairs to conform the
12 farm equipment to the warranty upon receipt of such
13 report; requiring that such repairs be at no cost to
14 the consumer; requiring the manufacturer or its
15 authorized agent to replace or accept the return of
16 the defective farm equipment under certain
17 circumstances; providing a presumption; providing for
18 the nonapplicability of the presumption; providing
19 affirmative defenses; providing civil remedies;
20 providing an effective date.
21
22 Be It Enacted by the Legislature of the State of Florida:
23
24 Section 1. Section 604.40, Florida Statutes, is amended to
25 read:

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 637 2026

26 604.40 Farm equipment; protection against defective farm
27 equipment.—
28 (1) As used in this section, the term "farm equipment"
29 means all power-drawn, power-driven, or self-propelled equipment
30 used on a farm or used to transport farm products.
31 (2) Notwithstanding any other law, ordinance, rule, or
32 policy to the contrary, farm equipment all power-drawn, power-
33 driven, or self-propelled equipment used on a farm or used to
34 transport farm products may be stored, maintained, or repaired
35 by the owner within the boundaries of the owner's farm and at
36 least 50 feet away from any public road without limitation.
37 (2) This subsection section does not apply to farm
38 equipment that is used in urban agriculture, as defined in s.
39 604.73(3).
40 (3)(a) If farm equipment is defective and does not conform
41 to all applicable express written warranties, the consumer may
42 report the defect to the manufacturer or its authorized service
43 agent during the manufacturer's warranty period or during the 1-
44 year period following the original delivery date of the farm
45 equipment to the consumer to allow the manufacturer or its
46 authorized agent the opportunity to conform the farm equipment
47 to the warranty. Upon receipt of such report, the manufacturer
48 or its authorized agent shall make such repairs as are necessary
49 to conform the equipment to the warranty. Such repairs shall be
50 at no cost to the consumer.

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 637 2026

51 (b) The manufacturer or its authorized agent shall replace
52 the farm equipment with comparable farm equipment, or accept the
53 return of the defective farm equipment from the consumer and
54 refund the consumer the cash purchase price, including sales
55 tax, license fees, registration fees, and any similar
56 governmental charges if the manufacturer or its authorized
57 dealer is not able to or otherwise fails to conform the farm
58 equipment to any applicable express written warranty after a
59 reasonable number of attempts.
60 (c) It is presumed that the manufacturer has made a
61 reasonable number of attempts to conform the farm equipment to
62 the applicable express warranties if the same nonconformity has
63 been the subject of repair three or more times by the
64 manufacturer or its authorized agent but the nonconformity
65 continues to exist. All reasonable attempts to conform the farm
66 equipment to the manufacturer's warranty must be made within 18
67 months after the consumer reports the defect to the manufacturer
68 in accordance with paragraph (a).
69 (d) In no event shall the presumption provided in
70 paragraph (c) apply to a manufacturer unless the manufacturer or
71 its authorized agent has received prior direct written
72 notification from or on behalf of the consumer and been offered
73 an opportunity to cure the alleged defect.
74 (e) It is an affirmative defense to any claim under this
75 subsection that:

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CS/HB 637 2026

76 1. An alleged nonconformity does not substantially impair
77 the farm equipment's use and market value; or
78 2. A nonconformity is the result of abuse or neglect, or
79 of modifications to or alterations of the farm equipment not
80 authorized by the manufacturer.
81 (f) This subsection may not be construed to limit or
82 impair the rights or remedies which are otherwise available to a
83 consumer under chapter 681.
84 (g) Any consumer who suffers a loss by reason of a
85 violation of this subsection may bring a civil action to enforce
86 such provision.
87 Section 2. This act shall take effect July 1, 2026.

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hb637-01-c1
COMMERCE COMMITTEE

CS/HB 637 by Rep. Griffitts
Farm Equipment

AMENDMENT SUMMARY
February 26, 2026

Amendment #603659 by Rep. Griffitts (Strike-all):
• Defines “consumer” to mean a purchaser or lessee of farm equipment, other than for
purposes of resale, or a person entitled to enforce the obligations of the warranty during
the duration of the farm equipment warranty period.
• Provides that lienholders and holders of a security interest in farm equipment, if any, are
entitled to a refund if the manufacturer or its authorized representative is unable to or
otherwise fails to conform the equipment to the applicable express written warranty, and
that the manufacturer or its authorized agent is entitled to a reasonable offset for prior
use and depreciation of the farm equipment when providing a refund.
• Provides that the allowable repair period shall be extended by any period of time during
which services are not available to the consumer due to war, invasion, strike, fire, flood,
or natural disaster.
• Clarifies that the provisions of the bill apply to farm equipment sold on or after July 1,
2026.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 637 (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: Commerce Committee
2 Representative Griffitts offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Section 604.40, Florida Statutes, is amended to
7 read:
8 604.40 Farm equipment; protection against defective farm
9 equipment.—
10 (1) As used in this section, the term:
11 (a) "Farm equipment" means all power-drawn, power-driven,
12 or self-propelled equipment primarily designed for use on a farm
13 or primarily designed to transport farm products.
14 (b) "Consumer" means a purchaser or lessee of farm
15 equipment, other than for purposes of resale, or a person

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 637 (2026)
Amendment No.

16 entitled to enforce the obligations of the warranty during the
17 duration of the farm equipment warranty period.
18 (2) Notwithstanding any other law, ordinance, rule, or
19 policy to the contrary, farm equipment all power-drawn, power-
20 driven, or self-propelled equipment used on a farm or used to
21 transport farm products may be stored, maintained, or repaired
22 by the owner within the boundaries of the owner's farm and at
23 least 50 feet away from any public road without limitation.
24 (2) This subsection section does not apply to farm
25 equipment that is used in urban agriculture, as defined in s.
26 604.73(3).
27 (3)(a) If farm equipment is defective and does not conform
28 to all applicable express written warranties, the consumer may
29 report the defect in writing to the manufacturer or its
30 authorized service agent during the manufacturer's warranty
31 period or during the 1-year period following the original
32 delivery date of the farm equipment to the consumer to allow the
33 manufacturer or is authorized agent the opportunity to conform
34 the farm equipment to the warranty. Upon receipt of such report,
35 the manufacturer or its authorized agent shall make such repairs
36 as are necessary to conform the equipment to the warranty. Such
37 repairs shall be at no cost to the consumer.
38 (b) The manufacturer or its authorized agent shall replace
39 the farm equipment with comparable farm equipment, or accept the
40 return of the defective farm equipment from the consumer and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 637 (2026)
Amendment No.

41 refund the consumer and the lienholder or holder of a security
42 interest, if any, the cash purchase price, including sales tax,
43 license fees, registration fees, and any similar governmental
44 charges less a reasonable offset for prior use and depreciation
45 of the farm equipment, if the manufacturer or its authorized
46 dealer is not able to or otherwise fails to conform the farm
47 equipment to any applicable express written warranty after a
48 reasonable number of attempts.
49 (c) It is presumed that the manufacturer has made a
50 reasonable number of attempts to conform the farm equipment to
51 the applicable express warranties if the same nonconformity has
52 been the subject of repair three or more times by the
53 manufacturer or its authorized agent but the nonconformity
54 continues to exist. All reasonable attempts to conform the farm
55 equipment to the manufacturer's warranty must be made within 18
56 months after the consumer reports the defect to the manufacturer
57 in accordance with paragraph (a).
58 (d) In no event shall the presumption provided in
59 paragraph (c) apply to a manufacturer unless the manufacturer or
60 its authorized agent has received prior direct written
61 notification from or on behalf of the consumer and been offered
62 an opportunity to cure the alleged defect.
63 (e) The allowable repair period shall be extended by any
64 period of time during which repair services are not available to

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 637 (2026)
Amendment No.

65 the consumer because of war, invasion, strike, fire, flood, or
66 natural disaster.
67 (f) It is an affirmative defense to any claim under this
68 subsection that:
69 1. An alleged nonconformity does not substantially impair
70 the farm equipment's use and market value; or
71 2. A nonconformity is the result of abuse or neglect, or
72 of modifications to or alterations of the farm equipment not
73 authorized by the manufacturer.
74 (g) Any consumer who suffers a loss by reason of a
75 violation of this subsection may bring a civil action to enforce
76 such provision.
77 (h) This section applies to farm equipment sold on or
78 after July 1, 2026.
79 Section 2. This act shall take effect July 1, 2026.
80
81 -----------------------------------------------------
82 T I T L E A M E N D M E N T
83 Remove everything before the enacting clause and insert:
84 An act relating to farm equipment; amending s. 604.40,
85 F.S.; defining the term "farm equipment"; conforming
86 provisions to changes made by the act; authorizing a
87 consumer to report farm equipment that is defective
88 and does not conform to specified warranties to the
89 manufacturer or its authorized service agent during a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 637 (2026)
Amendment No.

90 specified timeframe to allow the manufacturer or its
91 authorized agent to conform such farm equipment to
92 such warranty; requiring the manufacturer or its
93 authorized agent to make such repairs to conform the
94 farm equipment to the warranty upon receipt of such
95 report; requiring that such repairs be at no cost to
96 the consumer; requiring the manufacturer or its
97 authorized agent to replace or accept the return of
98 the defective farm equipment under certain
99 circumstances; providing a presumption; providing
100 affirmative defenses; providing civil remedies;
101 providing applicability; providing an effective date.

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Page 5 of 5
CS/CS/CS/HB 657
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/CS/CS/HB 657 COMPANION BILL: CS/SB 1498 (Bradley)
TITLE: Community Associations LINKED BILLS: None
SPONSOR(S): Porras RELATED BILLS: None
Committee References
Housing, Agriculture & Civil Justice & Claims Budget Commerce
Tourism  14 Y, 1 N, As CS  24 Y, 0 N, As CS 
16 Y, 0 N, As CS

SUMMARY
Effect of the Bill:
The bill:
• Requires new homeowners’ associations (HOAs) and condominium associations (COAs) to include
“Kaufman” language in their governing documents, which language effectively subjects an HOA or COA, as
applicable, to Florida’s current community association laws and any future enactments.
• Requires existing HOAs and COAs to vote on whether or not to amend their governing documents to include
“Kaufman” language.
• Allows HOAs to be terminated pursuant to a plan of termination that meets certain requirements and
specifies that the governing documents of a dissolved HOA are deemed terminated and unenforceable.
• Specifies that HOA directors, officers, and committee members have a duty of loyalty to the HOA and its
members and defines what constitutes a conflict of interest for such persons.
• Eliminates presuit mediation requirements for community associations.
• Authorizes each circuit court to create a community association court program with jurisdiction over
disputes arising under the Condominium Act, Cooperative Act, or Homeowners’ Association Act, which
programs are to be funded by an appropriation to the Department of Business and Professional Regulation.
• Defines the term “financial statements” within the HOA Act.

Fiscal or Economic Impact:
The House of Representatives’ proposed General Appropriations Act authorizes twelve full-time equivalent
positions and provides $1,000,000 from the General Revenue Fund and $1,210,396 from the State Courts Revenue
Trust Fund to implement the provisions of the bill, contingent upon its passage.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
Presuit Mediation Requirements for Community Associations
The bill eliminates presuit mediation requirements for community associations. (Sections 3, 5, and 8.)

Community Association Court Program
The bill allows a circuit court to create and administer a community association court program. Under the bill, a
chief judge of a judicial circuit that creates a community association court program must designate at least one
judge to preside over the program. The bill authorizes the chief judge to issue administrative orders concerning the
community association court program. (Sections 3 and 10.)

STORAGE NAME: h0657f.COM
DATE: 2/24/2026
1
CS/CS/CS/HB 657
The bill specifies that a community association court program has jurisdiction over disputes, including any related
termination or enforcement proceedings, arising under Florida’s Condominium Act, Cooperative Act, or
Homeowners’ Association Act. The bill authorizes a community association court program to do all of the
following:
• Enforce all statutory rights of unit owners and parcel owners.
• Verify and compel compliance with all statutory requirements by community associations, boards of
administration, and officers or directors of such boards.
• Order the Department of State to dissolve a community association.
• Appoint a termination trustee to manage the distribution of association assets and resolution of liabilities.
• Impose civil penalties for violations of statutory rights.
• Issue injunctive relief as appropriate.
• Award reasonable attorney fees and costs as appropriate. (Section 10.)

The bill requires the chief judge in each judicial circuit in which a community association court program is created
to submit a report that summarizes the caseload of each community association court program and the outcomes
of such caseload to the President of the Senate and the Speaker of the House of Representatives by January 1 of
each year. (Section 10.)

The bill requires the Office of the State Courts Administrator to establish procedure, staffing, and reporting
requirements for the operation of a community association court program. (Section 10.)

The bill specifies that the costs associated with the creation, operation, and compliance and enforcement duties of
a community association court program will be funded as authorized by and consistent with the General
Appropriations Act. Any funds specifically appropriated or transferred from the Division of Florida Condominiums,
Timeshares, and Mobile Homes Trust Fund within the Department of Business and Professional Regulation to
implement such programs are to be reverted annually by June 30 if unencumbered, and by September 30 if
undisbursed. (Section 10.)

The bill creates two additional judgeships in the Eleventh Judicial Circuit, and one judgeship each in the Thirteenth
and Seventeenth Judicial Circuits. The bill specifies that the additional judgeships are authorized for the purpose of
implementing the community court association program. (Sections 11 and 12.)

Dissolution of Homeowners’ Associations
The bill creates the Homeowners’ Association Dissolution and Accountability Act under which an HOA may be
terminated by a plan of termination that meets certain requirements specified by the bill. (Section 9.)

To initiate the process for terminating an HOA under the bill, a parcel owner must provide a petition for a plan of
termination that has been signed by at least 50 percent of the voting interests of the HOA to the board of
administration. Within 60 days of receiving such a petition, the bill requires the board to hold a meeting of the
members, the notice for which must be made in accordance with s. 720.303(2), F.S., 1 and include the following
information:
• A copy of the proposed plan of termination;
• An explanation of how the common areas and the assets of the HOA will be managed or transferred; and
• The manner in which voting will take place. (Section 9.)

1 Section 720.303(2)(c), F.S., specifies notice requirements for board meetings of an HOA, unless different requirements are

specified in an HOA’s bylaws.
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2
CS/CS/CS/HB 657
Voting Requirements
The bill requires a plan of termination to be approved by at least two-thirds of the total voting interests of an HOA,
subject to the following conditions:
• The total voting interests must include all voting interests of the HOA for purposes of voting on a plan of
termination.
• A voting interest may not be suspended for any reason when voting on a plan of termination.
• If the members of an HOA reject a plan of termination, a subsequent plan of termination may not be
considered for at least 18 months after the date of the rejection. (Section 9.)

The bill specifies that a parcel owner desiring to reject a plan of termination must do so by voting to reject the plan
in person or by proxy, or by delivering a written objection to the HOA before or at the meeting called for the
purpose of voting on the plan. The bill prohibits a voting interest from being suspended for any reason for
purposes of signing a petition for a plan of termination or determining whether the 50 percent threshold for such
petition has been met. (Section 9.)

Approval by a Community Association Court Program
If a plan of termination is approved by an HOA, the bill requires the HOA’s board to submit the approved plan to
the community association court program in the judicial circuit where the HOA is located, or, if none, to another
court of competent jurisdiction. Within 45 days of receiving a plan of termination, the court must examine the plan
and notify the HOA by mail of any procedural deficiencies or that the plan is accepted. If a plan is accepted, the
termination may proceed as authorized. The bill specifies that a plan of termination is deemed to be accepted if a
court fails to provide the required notice within the 45-day time period. (Section 9.)

The bill requires the board to record an approved plan of termination 2 that has been accepted by a court in the
public records of each county in which any portion of the HOA is located. The bill specifies that a plan of
termination becomes effective upon recordation, 3 at which point title to the HOA’s property vests in a termination
trustee. (Section 9.)

Termination Trustee
The bill specifies that the board serves as an HOA’s termination trustee unless a different person is appointed in a
plan of termination, in which case the board must transfer any HOA property to that trustee. A termination trustee
is vested with the powers given by an HOA’s declaration and bylaws, in addition to certain other powers specified
by the bill. The bill provides that the approval of a plan of termination does not terminate an HOA’s board, which
must continue in existence following approval of the plan with all powers and duties the board had before approval
of the plan. (Section 9.)

The bill authorizes and requires an HOA’s board to take the following actions after the approval of a plan of
termination, notwithstanding any provision to the contrary in the HOA’s declaration or bylaws:
• Employ directors, agents, attorneys, and other professionals to liquidate or conclude the affairs of the
board.
• Conduct the affairs of the HOA as necessary for the liquidation or termination of the HOA.
• Carry out contracts and collect, pay, and settle debts and claims for and against the HOA.
• Defend suits brought against the HOA.
• Sue in the name of the HOA for all sums due or owed to the HOA or to recover any HOA property.
• Perform any act necessary to maintain, repair, or demolish unsafe or uninhabitable improvements or other
HOA property in compliance with applicable codes.
• Sell at public or private sale or exchange, convey, or otherwise dispose of assets of the HOA for an amount
deemed to be in the best interests of the HOA, and execute bills of sale and deeds of conveyance in the name
of the HOA.

2 And the consents or joinders of parcel owners thereto. (Section 7.)
3 Unless a later date is specified in the plan of termination. (Section 7.)

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3
CS/CS/CS/HB 657
• Collect and receive rents, profits, accounts receivable, income, maintenance fees, special assessments, or
insurance proceeds for the HOA.
• Contract and do anything in the name of the HOA which is proper or convenient to terminate the affairs of
the HOA. (Section 9.)

The bill requires all HOA assets remaining after the payment of any debts to be distributed equally among
members or as otherwise provided in a plan of termination. The bill prevents a member from being subject to
personal liability for unpaid obligations of the HOA beyond the member’s regular assessments or special
assessments, as such assessments existed before the vote approving the termination. (Section 9.)

Ability to Petition a Court to Compel Compliance
The bill authorizes a member of an HOA to petition the community association court program in the judicial circuit
in which the HOA is located, or, if none exists, another court of competent jurisdiction, for an order compelling
compliance with the bill’s provisions if any of the following occurs:
• The board fails to call a meeting to vote on a plan of termination within the 60-day time period required by
the bill.
• The board is unable, unwilling, or fails to act as termination trustee.
• The board refuses or fails to record the plan of termination or otherwise obstructs the termination process.
(Section 9.)

The bill authorizes a court to verify compliance with the procedural requirements of a plan of termination under
the bill, including all voting requirements; order the Department of State to dissolve the HOA; and appoint a
termination trustee to manage the distribution of assets and resolution of liabilities of a dissolved HOA. (Section 9.)

The bill specifies the following actions by an HOA or an HOA’s officers or directors are unlawful:
• Failing to call or notice a meeting after receipt of a valid petition for a plan of termination.
• Spending HOA funds to campaign for or against a plan of termination.
• Concealing any financial or property records relevant to a plan of termination. (Section 9.)

The bill provides that an officer or director who violates the above provisions is subject to:
• A civil penalty of up to $5,000 per violation.
• Removal from office by court order.
• Personal liability for legal fees incurred by the petitioners. (Section 9.)

Governing Documents and Easements of a Dissolved HOA
The bill specifies that, upon the dissolution of an HOA, its governing documents which were recorded in the official
records of a county are deemed terminated and unenforceable. The bill prohibits the recorded governing
documents of a dissolved HOA from being construed to create any rights for the general public or any successor
entity unless expressly provided by law. The bill requires the clerk of the circuit court to, upon receipt of a certified
copy of an HOA’s articles of dissolution, mark or otherwise indicate in the county’s official records that the HOA’s
governing documents are terminated and inactive. (Section 1.)

The bill requires an exclusive easement created for the benefit of an HOA or its members to revert to the servient
estate 4 upon dissolution of the HOA if the owner of the servient estate has continuously paid his or her ad valorem
taxes on the land encumbered by the easement. Upon reversion, the bill provides that the exclusive easement is
extinguished and that the owner of the servient estate regains full rights of ownership, possession, and control of
the land encumbered by such easement. (Section 1.)

4 “Servient estate” means the real property burdened by an easement. (Section 1)

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
CS/CS/CS/HB 657
The bill prohibits an easement formerly held by an HOA from becoming a public right-of-way, trail, or access route
unless a separate, valid written notice in accordance with s. 712.06, F.S., has been recorded to preserve the
easement for the benefit of the public. (Section 1.)

These provisions in the bill do not impair or extinguish easements, covenants, or restrictions benefiting individual
property owners which were separately recorded or preserved under ch. 712, F.S., the Marketable Record Title Act.
(Section 1.)

These provisions apply prospectively and retroactively to HOAs dissolved before, on, or after July 1, 2026. (Section
1.)

“Kaufman” Language
The bill requires each condominium association (COA) and homeowners’ association (HOA) formed on or after July
1, 2026, to include certain language in its governing documents that effectively subjects the COA or HOA, as
applicable, and its governing documents to the current laws governing such associations and any future
amendments to those laws. This is known as “Kaufman” language. (Sections 2 and 6.)

The bill requires COAs and HOAs in existence before July 1, 2026 to hold a meeting of their members by January 1,
2027, to vote whether to amend their governing documents to include Kaufman language. The bill specifies that the
decision to include Kaufman language in a COA’s or HOA’s governing documents requires, at a meeting of the
members at which a quorum has been attained:
• The affirmative approval of a majority of the voting interests of an HOA.
• The affirmative approval of the owners of two-thirds of the units of a COA. (Sections 2 and 6.)

Conflict of Interest
The bill creates a duty of loyalty for HOA directors, officers, and committee members to the association and its
members. The bill specifies that:
• A conflict of interest exists when a director, officer, or committee member of an HOA has a direct or indirect
financial interest in a transaction, contract, or decision under consideration by the HOA.
• Compensating or contracting with a director, officer, or committee member, or an immediate family
thereof, creates a rebuttable presumption of a conflict of interest. (Section 6.)

The bill requires an HOA director, officer, or committee member with a conflict of interest to disclose the nature
and extent of the interest in writing to the board of the HOA before any discussion or vote on the matter. The bill
prohibits the interested director, officer, or committee member from participating in any discussion or vote on the
matter. (Section 6.)

The bill provides that a transaction involving a conflict of interest is voidable by an HOA unless the transaction was
approved by a majority of the voting interests of the HOA after full disclosure by the interested director, officer, or
committee member. (Section 6.)

The bill’s provisions relating to conflicts of interest may not be waived or limited in an HOA’s governing
documents. (Section 6.)

Official Records
The bill amends the HOA Act to define the term “financial statements,” which statements the HOA must, under
current law, retain as part of its official records. Specifically, under the bill, the term “financial statements” means a
comprehensive report prepared in accordance with generally accepted accounting principles which accurately
reflects the financial condition and operation of an HOA for a specified reporting period. This report must include,
at a minimum, a balance sheet; an income and expense statement; a budget comparison; and a complete set of bank
statements, including copies of check images for all disbursements the HOA made during the reporting period, for
each bank account belonging to the HOA. (Section 4.)

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Miscellaneous Provisions
The bill conforms cross-references due to changes made by the act. (Sections 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,
and 23.)

The bill has an effective date of July 1, 2026. (Section 24.)

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The proposed House of Representatives’ General Appropriations Act authorizes twelve full-time equivalent
positions, with associated salary rate of $1,257,504, and provides $1,000,000 in recurring funds from the General
Revenue Fund, as well as $1,170,196 in recurring funds and $40,200 in nonrecurring funds from the State Courts
Revenue Trust Fund to implement the community association court program, contingent upon passage of the bill.
The funds are provided for two additional judgeships in the Eleventh Judicial Circuit, and one judgeship each in the
Thirteenth and Seventeenth Judicial Circuits, as well as associated staff. If future needs associated with
implementing community association court programs exceed available resources, the State Court System may
request additional funding through the traditional Legislative Budget Request process outlined in s. 216.023, F.S.

PRIVATE SECTOR:
The bill may have an indeterminate positive impact on community associations and their members to the extent
that the community association court program results in more resolved disputes. The bill may also have an
indeterminate impact on homeowners’ associations that wish to dissolve and terminate. A request for a formal
analysis was submitted to the Department of Business and Professional Regulation on December 17, 2025.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Community Associations
A community association is a residential association in which membership is a condition of ownership of a unit in a
planned unit development, or of a lot for a home or a mobile home, or of a townhouse, villa, condominium,
cooperative, or other residential unit which is part of a residential development scheme and which is authorized to
impose a fee which may become a lien on the parcel. 5

The table below summarizes the three major types of community associations recognized in Florida, 6 the Florida
laws that govern them, and the type of ownership specific to each association:

Community Association Ownership Structure Governed By
Condominium Association “Condominium” means that form of ownership of Ch. 718, F.S.
real property created pursuant to ch. 718, F.S.,
which is comprised entirely of units that may be
owned by one or more persons, and in which there
is, appurtenant to each unit, an undivided share in
common elements. 7
Cooperative Association “Cooperative” means that form of ownership of Ch. 719, F.S.
real property wherein legal title is vested in a
corporation or other entity and the beneficial use is
evidenced by an ownership interest in the
cooperative association and a lease or other

5 S. 468.431(1), F.S.
6 Other community associations recognized in Florida include vacation and timeshare plans. See ch. 721, F.S.
7 S. 718.103(12), F.S.

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evidence of title or possession granted by the
cooperative association as the owner of all the
cooperative property. 8
Homeowners’ Association “Homeowners’ association” means a Florida Ch. 720, F.S.
corporation responsible for the operation of a
community or a mobile home subdivision in which
the voting membership is made up of parcel
owners or their agents, or a combination thereof,
and in which membership is a mandatory
condition of parcel ownership, and which is
authorized to impose assessments that, if unpaid,
may become a lien on the parcel. 9

Presuit Mediation Requirements for Community Associations
Under Florida law, certain disputes between a homeowners’ association (HOA) and a parcel owner are subject to
presuit mediation before the dispute is filed in court. 10 The disputes subject to presuit mediation include disputes
regarding:
• The use of or changes to a parcel or the common areas and other covenant enforcement disputes.
• Amendments to an association’s documents.
• Meetings of the board and committees appointed by the board.
• Member meetings not including election or recall disputes.
• Access to the official records of the association. 11
Presuit mediation proceedings for community associations must be conducted in accordance with the applicable
Florida Rules of Civil Procedure, and such proceedings are privileged and confidential to the same extent as court-
ordered mediation. 12

The failure of a party to respond to a demand or response for presuit mediation, agree upon a mediator, make
payment of fees and costs within the time established by the mediator, or appear for a scheduled mediation session
without the approval of the mediator entitles the other party to proceed in court and seek an award of the costs
and fees associated with the mediation. 13 A party’s failure or refusal to participate in the mediation process bars
the recovery of any fees and costs by such party in subsequent litigation relating to the dispute. 14

Conflict of Interest for HOA Directors and Officers
The Florida Homeowners’ Association Act 15 requires directors and officers of an HOA to disclose to the HOA any
activity that may be reasonably construed to be a conflict of interest at least 14 days before voting on an issue or
entering into a contract that is the subject of the conflict. 16 A rebuttable presumption of a conflict of interest exists
if any of the following acts occur without prior disclosure to the HOA:
• A director or an officer, or a relative of a director or an officer, enters into a contract for goods or services
with the HOA.

8 S. 719.103(12), F.S.
9 S. 720.301(9), F.S. The term “homeowners’ association” does not include a community development district or other similar

special taxing district created pursuant to statute.
10 See s. 720.311, F.S.
11 S. 720.311(2)(a), F.S.
12 Id.
13 S. 720.311(2)(b), F.S.
14 Id.
15 Ch. 720, F.S.
16 S. 720.3033(6)(b), F.S.

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• A director or an officer, or a relative of a director or an officer, holds an interest in a corporation, limited
liability company, partnership, limited liability partnership, or other business entity that conducts business
with the HOA or proposes to enter into a contract or other transaction with the HOA. 17

Official Records
The HOA Act requires an HOA to maintain specified documents, which constitute the HOA’s official records, for at
least 7 years, unless the HOA’s governing documents require retention for a longer period of time. Such documents
include copies of the HOA’s governing documents and:
• The minutes of all board and member meetings.
• A current roster of all members and their designated mailing addresses and parcel identification numbers.
• All of the HOA’s insurance policies or copies thereof.
• A current copy of all contracts to which the HOA is a party.
• All tax returns, financial statements, 18 and financial reports of the HOA.
• A copy of the disclosure summary. 19
• Ballots, sign-in sheets, voting proxies, and all other papers and electronic records relating to voting by
parcel owners, which must be maintained for at least one year after the date of the election, vote, or
meeting.
• All other written records of the HOA not specifically named which are related to the operation of the HOA. 20

Further, an HOA with 100 or more parcels must post specified documents on its website or make such documents
available through an application that may be downloaded on a mobile device. 21

The official records must generally be maintained within this state and made available to a parcel owner for
inspection or photocopying within 45 miles of the community or within the county in which the HOA is located
within 10 business days after receipt by the board or its designee of a written request from the parcel owner; such
a requirement may be met by having a copy of the official records available for inspection or copying in the
community, by making the records available to a parcel owner electronically via the Internet, or by allowing the
records to be viewed in electronic format on a computer screen and printed upon request. 22 If the HOA has a
photocopy machine available where the records are maintained, it must provide parcel owners with copies on
request during the inspection if the entire request is limited to no more than 25 pages, and an HOA must allow a
member to use a portable device to make an electronic copy of the official records without charging a fee to a
member for the use of such a portable device. 23

Where an HOA fails to provide access to the records within 10 business days after receipt of a written request to
inspect the records from a parcel owner, there is a rebuttable presumption that the HOA willfully failed to comply
with the HOA Act’s records access requirements. 24 A member denied access to official records is entitled to recover
from the HOA her or his actual damages or minimum damages for such a willful failure, with the minimum

17 S. 720.3033(6)(b)1.–2., F.S.
18 The term “financial statements” is presently undefined within the HOA Act.
19 Under the HOA Act, a prospective parcel owner in a community must be presented a disclosure summary before executing a

contract for sale. The disclosure summary must be in a form substantially similar to certain language specified in s.
720.401(1)(a), F.S. The disclosure summary essentially puts a prospective parcel owner on notice that, as a purchaser of
property in a community, the purchaser will be obligated to be a member of an HOA; that there have been or will be recorded
restrictive covenants governing the use and occupancy of properties in the community; and that the purchaser will be
obligated to pay assessments to an HOA, which may be subject to change. See s. 720.401, F.S.
20 S. 720.303, F.S.
21 Id.
22 Id.
23 Id.
24 Id.

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damages set at $50 per calendar day, up to 10 days. 25 Criminal penalties may also apply to certain willful and
knowing misconduct pertaining to an HOA’s official records. 26

Optional Termination for Condominium Associations
Under the Florida Condominium Act, 27 the condominium form of ownership may be terminated for all or a portion
of the condominium’s property pursuant to a plan of termination that meets certain requirements and is approved
by the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) within the Department of
Business and Professional Regulation (DBPR). 28

Florida law requires a plan of termination for a condominium association to be approved by at least 80 percent of
the total voting interests of the condominium. 29 If five percent or more of the total voting interests of the
condominium association rejects a plan of termination by negative vote or by providing written objections,
however, the plan of termination may not proceed. 30

The termination of a condominium association is subject to the following conditions:
• The total voting interests of the condominium must include all voting interests for the purpose of
considering a plan of termination.
• A voting interest of the condominium may not be suspended for any reason when voting on termination.
• If five percent or more of the total voting interests of the condominium reject a plan of termination, a
subsequent plan of termination may not be considered for 24 months after the date of the rejection. 31

Once a plan of termination is approved by a condominium association, the plan must be submitted to the Division.
The Division must examine the plan of termination to determine its procedural sufficiency and, within 45 days of
receiving the plan, the Division must notify the condominium association by mail of any procedural deficiencies or
that the plan is accepted. 32 If the Division does not provide notice within the 45-day time period, the plan of
termination is presumed to be accepted. 33 If the Division determines that the requisite conditions have been met
and that the plan complies with procedural requirements, the Division must approve the termination, at which
point the termination may proceed as authorized. 34

The approval of a plan of termination does not terminate a condominium association, which shall continue to exist
with all of the powers and duties it had before the plan was approved. Notwithstanding any provision to the
contrary in a condominium association’s declaration or bylaws, after approval of a plan of termination, the
condominium association’s board must:
• Employ directors, agents, attorneys, and other professionals to liquidate or conclude its affairs.
• Conduct the affairs of the association as necessary for the liquidation or termination.
• Carry out contracts and collect, pay, and settle debts and claims for and against the association.
• Defend suits brought against the association.
• Sue in the name of the association for all sums due or owed to the association or to recover any of its
property.
• Perform any act necessary to maintain, repair, or demolish unsafe or uninhabitable improvements or other
condominium property in compliance with applicable codes.

25 Id.
26 Id.
27 Ch. 718, F.S.
28 S. 718.117(3), F.S.
29 Id.
30 Id.
31 S. 718.117(3)(a), F.S.
32 S. 718.117(3)(e), F.S.
33 Id.
34 Id.

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• Sell at public or private sale or exchange, convey, or otherwise dispose of assets of the association for an
amount deemed to be in the best interests of the association, and execute bills of sale and deeds of
conveyance in the name of the association.
• Collect and receive rents, profits, accounts receivable, income, maintenance fees, special assessments, or
insurance proceeds for the association.
• Contract and do anything in the name of the association which is proper or convenient to terminate the
affairs of the association. 35

Impairment of Contracts and Community Association Law
The U.S. Constitution and the Florida Constitution prohibit states from passing any law “impairing the obligation of
contracts.” 36 The Florida Supreme Court has interpreted the language under the Florida Constitution to mean, as a
general rule, the Legislature is prohibited from enacting any law that impairs vested rights under a contract
between private parties. 37

The governing documents of a community association are essentially contracts between a community association
and its members. The governing documents of an association include:
• The recorded declaration of covenants for the community and all duly adopted amendments, supplements,
and exhibits thereto; and
• The articles of incorporation and bylaws of the association and all duly adopted amendments thereto. 38

For community associations, the general rule against the impairment of contracts means that a new or amended
statute may not be applied to an association’s governing documents if the new or amended statute impairs a vested
right guaranteed by the governing documents. 39 A statute impairs the governing documents if it creates a new
obligation, imposes a new penalty, or diminishes a vested right. 40 A vested right is a right derived from an
association’s governing documents, whereas a statutory right is derived from state statute. 41

“Kaufman” Language
Notwithstanding the general rule against the impairment of contracts, an exception exists if an association’s
governing documents incorporate future legislative enactments. To accomplish this, the governing documents
must contain language in substantially the following form: “This association and the association’s governing
documents are governed by the Florida Homeowners’ Association Act [or the Condominium Act, as applicable], as
amended from time to time.” The phrase “as amended from time to time” effectively incorporates future
legislative enactments and is known as Kaufman language. 42

If the governing documents of an association have Kaufman language, a new or amended statute under Florida’s
community association laws does not impair the governing documents and may apply to the association, as the
governing documents have already incorporated any future changes to those laws.

35 S. 718.117(6), F.S.
36 U.S. CONST. art. I, § 10, cl. 1; FLA. CONST. art. I, § 10.
37 See Dewberry v. Auto-Owners Ins. Co., 363 So. 2d 1077, 1080 (Fla. 1978). See also Eric Glazer and Louis Goetz, Florida

Community Association Law: Contracts Clause Application in an Ever-Changing Legislative Landscape (Sep./Oct. 2015), Fla. Bar
Journal, Vol. 89 No. 8, https://www.floridabar.org/the-florida-bar-journal/florida-community-association-law-contracts-
clause-application-in-an-ever-changing-legislative-landscape/ (last visited Feb. 6, 2026).
38 S. 720.301(8), F.S.
39 See Cohn v. The Grand Condominium Ass’n, Inc., 62 So. 3d 1120 (Fla. 2011); see also Pomponio v. Claridge of Pompano Condo,

Inc., 378 So. 2d 774, 776 (Fla. 1979).
40 See R.A.M. of South Fla., Inc., v. WCI Communities, Inc., 869 So. 2d 1210 (Fla. 2d DCA 2004) (quoting Div. of Workers’ Comp. v.

Brevada, 420 So. 2d 887, 891 (Fla. 1st DCA 1982).
41 See R.A.M. of South Fla., 869 So. 2d at 1210. See also Eric Glazer, Florida Community Association Law, Fla. Bar Journal

(Sep./Oct. 2015), Vol. 89 No. 8.
42 See Kaufman v. Shere, 347 So. 2d 627 (Fla. 3d DCA 1977), cert. den., 355 So 2d 517 (Fla. 1978).

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Marketable Record Title Act
Before the passage of the Marketable Record Title Act’s (MRTA) in 1963, a title examination involved reviewing all
documents relating to a parcel of property recorded in the public records of a county from the oldest public
records – which could in some cases date back to a land grant from the king of Spain 43 – to the most recent. 44 This
usually required the purchase of a title abstract and a review and analysis of every document and title
transaction45 listed in the abstract. 46

MRTA simplified the title examination process by confirming a piece of real property’s marketability based on a
30-year marketable record period and a consideration of certain statutory exceptions, rather than on a perfect
record from the oldest public records. MRTA provides that any person with legal capacity to own land who has
been vested with any estate in land of record for 30 years or more has marketable record title to such land free and
clear of all claims other than those specified in statute or otherwise preserved. 47

After 30 years, MRTA automatically extinguishes all estates, interests, claims, or charges existing due to any act,
title transaction, event, or omission occurring before the effective date of the root of title 48 and not statutorily
excepted from extinguishment. 49 Subject to certain exceptions, 50 all extinguished estates, interests, claims, or
charges become null and void. 51

Preserving Interests Under MRTA
MRTA provides a mechanism for an interested party to preserve from extinguishment a right or interest the party
holds. Additionally, a community association may preserve and protect a community covenant or restriction52 by
filing:
• A written notice in the form required by MRTA;53
• A summary notice complying with certain statutory specifications relating to notice of association
information; 54 or
• An amendment to a community covenant or restriction indexed under the association’s legal name and
referencing the information to be preserved. 55

Such an action creates a new marketable record period, preventing extinguishment of the interests and rights
contained in the notice or community covenant or restriction amendment for 30 years from the date of filing. 56

43 See The Florida Bar, Florida Real Property Title Examination and Insurance ch. 2, (8th ed. 2016).
44 Gregory M. Cook, The Marketable Record Title Act Made Easy, 66 Fl. Bar J. 55 (Oct. 1992), https://www.floridabar.org/the-

florida-bar-journal/the-marketable-record-title-act-made-easy/ (last visited Feb. 3, 2026).
45 “Title transaction” means any recorded instrument or court proceeding affecting title to any estate or interest in land and

describing the land sufficiently to identify its location and boundaries. S. 712.01(7), F.S.
46 Cook, supra note 43.
47 Id.; See also S. 712.03, F.S.
48 “Root of title” means any title transaction purporting to create or transfer the estate claimed by any person which is the last

title transaction to have been recorded at least 30 years before the time when marketability is being determined. The effective
date of the root of title is the date it was recorded. S. 712.01(6), F.S.
49 S. 712.04, F.S.
50 See s. 712.03, F.S.
51 S. 712.04, F.S.
52 “Community covenant or restriction” means any agreement or limitation contained in a document recorded in the public

records of the county where the property lies which subjects the parcel to any use restriction enforceable by a community
association or authorizes a community association to impose a charge or assessment against the parcel or parcel owner. S.
712.01, F.S.
53 S. 712.05(2)(a), F.S.
54 S. 712.05(2)(b), F.S.
55 Id.
56 S. 712.05(3), F.S.

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RECENT LEGISLATION:

YEAR BILL #/SUBJECT HOUSE/SENATE SPONSOR(S) OTHER INFORMATION

2025 CS/CS/HB 983 Porras/ Arrington Amended provisions in the
Homeowners’ Association Act. Died
in the House.
2024 CS/CS/CS/HB 1021 Lopez, V./ Bradley Amended provisions in the
Condominium Act, Cooperative Act,
and Homeowners’ Association Act.
Approved by the Governor.
2023 CS/CS/HB 919 Porras, Fernandez-Barquin/ Rodriguez Amended provisions in the
Condominium Act, Cooperative Act,
and Homeowners’ Association Act.
Approved by the Governor.

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BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
IHousing, Agriculture & Tourism 16 Y, 0 N, As CS 1/21/2026 Curtin Fletcher
Subcommittee
THE CHANGES ADOPTED BY THE • Provided that the governing documents of an HOA are terminated and
COMMITTEE: unenforceable upon dissolution.
• Applies the bill’s requirements for HOAs to include or vote to include
“Kaufman language” in their governing documents to condominium
associations.
• Created a duty of loyalty for directors, officers, and committee
members to an HOA and its members, and created conflict of interest
disclosure requirements for such directors, officers, and committee
members.
• Prohibited an owner’s voting interest from being suspended for any
reason for purposes of signing a petition for a plan of termination.
• Made certain other clarifying, technical changes.
Civil Justice & Claims 14 Y, 1 N, As CS 2/3/2026 Jones Mawn
Subcommittee
THE CHANGES ADOPTED BY THE • Defined the term “financial statements” within the HOA Act.
COMMITTEE: • Increased the percentage of owners who must sign a petition for a plan
of termination of an HOA.
• Increased the percentage of voting interests necessary to approve an
amendment adding “Kaufman Language” to the governing documents
of a COA or an HOA.
• Made technical, conforming changes.
Budget Committee 24 Y, 0 N, As CS 2/16/2026 Pridgeon Saag

THE CHANGES ADOPTED BY THE • Removed a provision requiring community association court programs
COMMITTEE: to be funded through a specific appropriation, and provided that such
programs will be funded as authorized by the General Appropriations
Act.
• Required that any funds appropriated or transferred from a specified
trust fund to implement court programs under the bill must revert by
specified dates.
• Increased the number of judges in the Eleventh, Thirteenth, and
Seventeenth Judicial Circuits in order to implement court programs
authorized by the bill.
Commerce Committee Hamon Fletcher

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/CS/CS/HB 657 2026

1 A bill to be entitled
2 An act relating to community associations; creating s.
3 712.13, F.S.; providing legislative findings and
4 intent; providing definitions; providing that the
5 recorded governing documents of a dissolved
6 homeowners' association are deemed terminated and
7 unenforceable; requiring the clerk of the circuit
8 court to indicate in the county records that a
9 dissolved association's governing documents are
10 terminated and inactive; requiring certain exclusive
11 easements to revert to the servient estate upon
12 dissolution of a homeowners' association under certain
13 circumstances; providing for the extinguishment of
14 such easement; prohibiting an easement held by a
15 dissolved association from becoming a public right-of-
16 way, trail, or access route unless the easement is
17 separately recorded for public use; providing
18 construction; providing retroactive applicability;
19 amending s. 718.104, F.S.; requiring condominium
20 associations to include a specified statement in the
21 governing documents or to hold a meeting by a date
22 certain to vote to amend the governing documents to
23 include such statement; requiring a vote held at such
24 meeting to be approved by a certain amount of the
25 voting interests; amending s. 718.1255, F.S.; removing

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26 presuit mediation requirements; amending s. 720.301,
27 F.S.; defining the term "financial statements";
28 amending s. 720.302, F.S.; conforming a provision to
29 changes made by the act; amending s. 720.303, F.S.;
30 requiring homeowners' associations to include a
31 specified statement in the governing documents or to
32 hold a meeting by a date certain to vote to amend the
33 governing documents to include such statement;
34 requiring a vote held at such meeting to be approved
35 by a certain amount of the voting interests; providing
36 that directors, officers, and committee members of a
37 homeowners' association owe a duty of loyalty to such
38 association and its members; requiring a director, an
39 officer, or a committee member who has a conflict of
40 interest to disclose to the board such conflict in
41 writing; prohibiting such director, officer, or member
42 from participating in any discussion or vote on such
43 matter; authorizing an association to void a
44 transaction involving a conflict of interest;
45 providing an exception; providing a rebuttable
46 presumption; providing construction; amending s.
47 720.306, F.S.; conforming a cross-reference; amending
48 s. 720.311, F.S.; removing presuit mediation
49 requirements; requiring that specified arbitrators
50 conduct arbitration proceedings; creating s. 720.319,

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51 F.S.; providing a short title; providing legislative
52 findings; authorizing a homeowners' association to be
53 terminated; providing requirements for the termination
54 of a homeowners' association; providing conditions for
55 a plan of termination; requiring an approved plan of
56 termination be submitted to a community association
57 court program and recorded in the public records of
58 each county in which the association is located;
59 providing duties and responsibilities of a termination
60 trustee; authorizing a member to file a petition with
61 a community association court program under certain
62 circumstances; authorizing a community association
63 court program to take certain actions; providing
64 responsibilities of the board after approval of a plan
65 of termination; providing for the distribution of
66 assets and paying of lawful debts after an association
67 is terminated; specifying unlawful actions by an
68 association or its officers or directors; providing
69 penalties; creating s. 720.32, F.S.; providing
70 legislative intent; authorizing circuit courts to
71 create and administer a community association court
72 program; providing duties of the chief judge;
73 providing the jurisdiction of the community
74 association court program; authorizing the community
75 association court program to take certain actions;

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76 requiring the chief judge of certain judicial circuits
77 to submit to the Legislature a specified report
78 annually by a specified date; providing duties of the
79 Office of the State Courts Administrator; providing
80 that certain costs associated with the community
81 association court program be funded through specific
82 appropriations in the General Appropriations Act;
83 requiring certain funds that remain unencumbered or
84 undisbursed by specified dates to revert to the
85 Division of Florida Condominiums, Timeshares, and
86 Mobile Homes Trust Fund; amending s. 26.031, F.S.;
87 increasing the number of circuit judges in certain
88 judicial circuits; specifying that the additional
89 circuit court judges are for the community association
90 court program; amending s. 34.01, F.S.; conforming a
91 provision to changes made by the act; amending ss.
92 336.125, 558.002, 617.0601, 617.0701, 617.0721,
93 617.0725, 617.0808, 617.1606, 718.116, and 720.3085,
94 F.S.; conforming cross-references; providing an
95 effective date.
96
97 Be It Enacted by the Legislature of the State of Florida:
98
99 Section 1. Section 712.13, Florida Statutes, is created to
100 read:

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101 712.13 Governing documents associated with dissolved
102 homeowners' associations.—
103 (1) The Legislature finds that when a homeowners'
104 association has been dissolved, voluntarily or involuntarily,
105 the recorded governing documents created solely for the
106 association's benefit may remain in the county records
107 indefinitely, imposing an undue burden on private property
108 owners. It is the intent of the Legislature to restore and
109 protect private property rights by ensuring that such
110 encumbrances are properly extinguished or removed from the
111 official records of the county when the association ceases to
112 exist.
113 (2) As used in this section, the term:
114 (a) "Dissolved association" means a homeowners'
115 association that has filed articles of dissolution with the
116 Department of State under chapter 617 or has otherwise ceased
117 its legal operation and existence.
118 (b) "Exclusive easement" means an easement recorded for
119 the sole benefit or use of a homeowners' association or its
120 members.
121 (c) "Governing documents" has the same meaning as in s.
122 720.301.
123 (d) "Servient estate" means the real property burdened by
124 an easement.
125 (3)(a) Upon the dissolution of a homeowners' association,

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126 the governing documents of the association, which were recorded
127 in the official records of a county and created solely for the
128 operation or benefit of the dissolved association or its
129 members, are deemed terminated and are unenforceable.
130 (b) The recorded governing documents may not be construed
131 to create any rights for the general public or for any successor
132 entity unless expressly provided by law.
133 (c) The clerk of the circuit court shall, upon receipt of
134 a certified copy of the association's articles of dissolution,
135 mark or otherwise indicate in the county's official records that
136 the governing documents for the dissolved association are
137 terminated and inactive.
138 (4)(a) An exclusive easement created for the benefit of a
139 homeowners' association or its members must revert to the
140 servient estate upon dissolution of the association if the owner
141 of the servient estate has continuously paid his or her ad
142 valorem taxes on the land encumbered by the easement.
143 (b) Upon reversion, the exclusive easement is extinguished
144 and the owner of the servient estate regains full rights of
145 ownership, possession, and control of the land encumbered by the
146 easement.
147 (c) An easement formerly held by a homeowners' association
148 may not become a public right-of-way, trail, or access route
149 unless a separate, valid written notice in accordance with s.
150 712.06 has been recorded to preserve the easement for the

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151 benefit of the public.
152 (5) This section does not impair or extinguish easements,
153 covenants, or restrictions benefiting individual property owners
154 which were separately recorded or preserved under this chapter.
155 (6) This section applies both prospectively and
156 retroactively to homeowners' associations dissolved before, on,
157 or after July 1, 2026.
158 Section 2. Subsection (8) is added to section 718.104,
159 Florida Statutes, to read:
160 718.104 Creation of condominiums; contents of
161 declaration.—Every condominium created in this state shall be
162 created pursuant to this chapter.
163 (8)(a) Each association formed on or after July 1, 2026,
164 must include the following statement in the governing documents:
165
166 This association and the association's governing
167 documents are governed by the Florida Condominium Act,
168 as amended from time to time.
169
170 (b) By January 1, 2027, each association in existence
171 before July 1, 2026, must hold a meeting of the members in
172 accordance with s. 718.112 to vote whether to amend the
173 governing documents of the association to include the statement
174 in paragraph (a). The association must obtain the affirmative
175 approval of two-thirds of the units at a meeting of the

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176 membership at which a quorum has been attained in order to amend
177 the governing documents under this paragraph.
178 Section 3. Subsections (6) and (7) of section 718.1255,
179 Florida Statutes, are renumbered as subsections (5) and (6),
180 respectively, and paragraphs (a), (h), (k), and (m) of
181 subsection (4) and present subsection (5) of that section are
182 amended, to read:
183 718.1255 Alternative dispute resolution; mediation;
184 nonbinding arbitration; applicability.—
185 (4) NONBINDING ARBITRATION AND MEDIATION OF DISPUTES.—The
186 Division of Florida Condominiums, Timeshares, and Mobile Homes
187 of the Department of Business and Professional Regulation may
188 employ full-time attorneys to act as arbitrators to conduct the
189 arbitration hearings provided by this chapter. The division may
190 also certify attorneys who are not employed by the division to
191 act as arbitrators to conduct the arbitration hearings provided
192 by this chapter. A person may not be employed by the department
193 as a full-time arbitrator unless he or she is a member in good
194 standing of The Florida Bar. A person may only be certified by
195 the division to act as an arbitrator if he or she has been a
196 member in good standing of The Florida Bar for at least 5 years
197 and has mediated or arbitrated at least 10 disputes involving
198 condominiums in this state during the 3 years immediately
199 preceding the date of application, mediated or arbitrated at
200 least 30 disputes in any subject area in this state during the 3

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201 years immediately preceding the date of application, or attained
202 board certification in real estate law or condominium and
203 planned development law from The Florida Bar. Arbitrator
204 certification is valid for 1 year. An arbitrator who does not
205 maintain the minimum qualifications for initial certification
206 may not have his or her certification renewed. The department
207 may not enter into a legal services contract for an arbitration
208 hearing under this chapter with an attorney who is not a
209 certified arbitrator unless a certified arbitrator is not
210 available within 50 miles of the dispute. The department shall
211 adopt rules of procedure to govern such arbitration hearings
212 including mediation incident thereto. The decision of an
213 arbitrator is final; however, a decision is not deemed final
214 agency action. Nothing in this provision shall be construed to
215 foreclose parties from proceeding in a trial de novo unless the
216 parties have agreed that the arbitration is binding. If judicial
217 proceedings are initiated, the final decision of the arbitrator
218 is admissible in evidence in the trial de novo.
219 (a) Before the institution of court litigation, a party to
220 a dispute, other than an election or recall dispute, must shall
221 either petition the division for nonbinding arbitration or
222 request that the case be referred to mediation initiate presuit
223 mediation as provided in subsection (5). Arbitration is binding
224 on the parties if all parties in arbitration agree to be bound
225 in a writing filed in arbitration. The petition must be

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226 accompanied by a filing fee in the amount of $50. Filing fees
227 collected under this section must be used to defray the expenses
228 of the alternative dispute resolution program.
229 (h) Mediation proceedings must generally be conducted in
230 accordance with the Florida Rules of Civil Procedure, and these
231 proceedings are privileged and confidential to the same extent
232 as court-ordered mediation. Persons who are not parties to the
233 dispute are not allowed to attend the mediation conference
234 without the consent of all parties, with the exception of
235 counsel for the parties and corporate representatives designated
236 to appear for a party. If the mediator declares an impasse after
237 a mediation conference has been held, the arbitration proceeding
238 terminates, unless all parties agree in writing to continue the
239 arbitration proceeding, in which case the arbitrator's decision
240 shall be binding or nonbinding, as agreed upon by the parties;
241 in the arbitration proceeding, the arbitrator shall not consider
242 any evidence relating to the unsuccessful mediation except in a
243 proceeding to impose sanctions for failure to appear at the
244 mediation conference. If the parties do not agree to continue
245 arbitration, the arbitrator shall enter an order of dismissal,
246 and either party may institute a suit in a community association
247 court program under s. 720.32 or a court of competent
248 jurisdiction. The parties may seek to recover any costs and
249 attorney fees incurred in connection with arbitration and
250 mediation proceedings under this section as part of the costs

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251 and fees that may be recovered by the prevailing party in any
252 subsequent litigation.
253 (k) The arbitration decision shall be rendered within 30
254 days after the hearing and presented to the parties in writing.
255 An arbitration decision is final in those disputes in which the
256 parties have agreed to be bound. An arbitration decision is also
257 final if a complaint for a trial de novo is not filed in a
258 community association court program under s. 720.32 or a court
259 of competent jurisdiction in which the condominium is located
260 within 30 days. The right to file for a trial de novo entitles
261 the parties to file a complaint in the appropriate trial court
262 for a judicial resolution of the dispute. The prevailing party
263 in an arbitration proceeding shall be awarded the costs of the
264 arbitration and reasonable attorney fees in an amount determined
265 by the arbitrator. Such an award shall include the costs and
266 reasonable attorney fees incurred in the arbitration proceeding
267 as well as the costs and reasonable attorney fees incurred in
268 preparing for and attending any scheduled mediation. An
269 arbitrator's failure to render a written decision within 30 days
270 after the hearing may result in the cancellation of his or her
271 arbitration certification.
272 (m) Any party to an arbitration proceeding may enforce an
273 arbitration award by filing a petition in a community
274 association court program under s. 720.32 or a court of
275 competent jurisdiction in which the condominium is located. A

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276 petition may not be granted unless the time for appeal by the
277 filing of a complaint for trial de novo has expired. If a
278 complaint for a trial de novo has been filed, a petition may not
279 be granted with respect to an arbitration award that has been
280 stayed. If the petition for enforcement is granted, the
281 petitioner shall recover reasonable attorney fees and costs
282 incurred in enforcing the arbitration award. A mediation
283 settlement may also be enforced through the county or circuit
284 court or a community association court program, as applicable,
285 and any costs and fees incurred in the enforcement of a
286 settlement agreement reached at mediation must be awarded to the
287 prevailing party in any enforcement action.
288 (5) PRESUIT MEDIATION.—In lieu of the initiation of
289 nonbinding arbitration as provided in subsections (1)-(4), a
290 party may submit a dispute to presuit mediation in accordance
291 with s. 720.311; however, election and recall disputes are not
292 eligible for mediation and such disputes must be arbitrated by
293 the division or filed in a court of competent jurisdiction.
294 Section 4. Subsections (8) through (13) of section
295 720.301, Florida Statutes, are renumbered as subsections (9)
296 through (14), respectively, and a new subsection (8) is added to
297 that section, to read:
298 720.301 Definitions.—As used in this chapter, the term:
299 (8) "Financial statements" means a comprehensive report
300 prepared in accordance with generally accepted accounting

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301 principles which accurately reflects the financial condition and
302 operation of a homeowners' association for a specified reporting
303 period. This report must include, at a minimum, a balance sheet;
304 an income and expense statement; a budget comparison; and a
305 complete set of bank statements, including copies of check
306 images for all disbursements the association made during the
307 reporting period, for each bank account belonging to the
308 association.
309 Section 5. Subsection (2) of section 720.302, Florida
310 Statutes, is amended to read:
311 720.302 Purposes, scope, and application.—
312 (2) The Legislature recognizes that it is not in the best
313 interest of homeowners' associations or the individual
314 association members thereof to create or impose a bureau or
315 other agency of state government to regulate the affairs of
316 homeowners' associations. However, in accordance with s.
317 720.311, the Legislature finds that homeowners' associations and
318 their individual members will benefit from an expedited
319 alternative process for resolution of election and recall
320 disputes and presuit mediation of other disputes involving
321 covenant enforcement and authorizes the department to hear,
322 administer, and determine these disputes as more fully set forth
323 in this chapter. Further, the Legislature recognizes that
324 certain contract rights have been created for the benefit of
325 homeowners' associations and members thereof before the

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326 effective date of this act and that ss. 720.301-720.407 are not
327 intended to impair such contract rights, including, but not
328 limited to, the rights of the developer to complete the
329 community as initially contemplated.
330 Section 6. Subsections (11) through (15) of section
331 720.303, Florida Statutes, are renumbered as subsections (12)
332 through (16), respectively, subsection (1) is amended, and a new
333 subsection (11) is added to that section, to read:
334 720.303 Association powers and duties; meetings of board;
335 official records; budgets; financial reporting; association
336 funds; recalls.—
337 (1) POWERS AND DUTIES.—
338 (a) An association that operates a community as defined in
339 s. 720.301 must be operated by an association that is a Florida
340 corporation. After October 1, 1995, the association must be
341 incorporated and the initial governing documents must be
342 recorded in the official records of the county in which the
343 community is located. An association may operate more than one
344 community.
345 (b) The officers and directors of an association are
346 subject to s. 617.0830 and have a fiduciary relationship to the
347 members who are served by the association.
348 (c) The powers and duties of an association include those
349 set forth in this chapter and, except as expressly limited or
350 restricted in this chapter, those set forth in the governing

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351 documents.
352 1. Each association formed on or after July 1, 2026, must
353 include the following statement in the governing documents:
354
355 This association and the association's governing
356 documents are governed by the Florida Homeowners'
357 Association Act, as amended from time to time.
358
359 2. By January 1, 2027, each association in existence
360 before July 1, 2026, must hold a meeting of the members in
361 accordance with s. 720.306 to vote whether to amend the
362 governing documents of the association to include the statement
363 in subparagraph 1. The association must obtain the affirmative
364 approval of two-thirds of the voting interests of the
365 association at a meeting of the membership at which a quorum has
366 been attained in order to amend the governing documents under
367 this subparagraph.
368 (d) After control of the association is obtained by
369 members other than the developer, the association may institute,
370 maintain, settle, or appeal actions or hearings in its name on
371 behalf of all members concerning matters of common interest to
372 the members, including, but not limited to, the common areas;
373 roof or structural components of a building, or other
374 improvements for which the association is responsible;
375 mechanical, electrical, or plumbing elements serving an

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376 improvement or building for which the association is
377 responsible; representations of the developer pertaining to any
378 existing or proposed commonly used facility; and protest of ad
379 valorem taxes on commonly used facilities. The association may
380 defend actions in eminent domain or bring inverse condemnation
381 actions. Before commencing litigation against any party in the
382 name of the association involving amounts in controversy in
383 excess of $100,000, the association must obtain the affirmative
384 approval of a majority of the voting interests at a meeting of
385 the membership at which a quorum has been attained. This
386 paragraph subsection does not limit any statutory or common-law
387 right of any individual member or class of members to bring any
388 action without participation by the association.
389 (e) A member does not have authority to act for the
390 association by virtue of being a member. An association may have
391 more than one class of members and may issue membership
392 certificates.
393 (f) An association of 15 or fewer parcel owners may
394 enforce only the requirements of those deed restrictions
395 established prior to the purchase of each parcel upon an
396 affected parcel owner or owners.
397 (11) CONFLICTS OF INTEREST.—
398 (a) A director, an officer, or a committee member of an
399 association owes a duty of loyalty to the association and its
400 members.

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401 (b) A conflict of interest exists when a director, an
402 officer, or a committee member has a direct or an indirect
403 financial interest in a transaction, contract, or decision under
404 consideration by the association.
405 (c) The director, officer, or committee member with a
406 conflict of interest must disclose the nature and extent of the
407 conflict in writing to the board before any discussion or vote
408 occurs on the matter.
409 (d) After disclosure of the conflict of interest, the
410 conflicted director, officer, or committee member may not
411 participate in any discussion or vote on the matter.
412 (e) A transaction involving a conflict of interest is
413 voidable by the association unless the transaction was approved
414 by a majority of the voting interests of the association after
415 full disclosure by the conflicted director, officer, or
416 committee member has occurred.
417 (f) Compensating or contracting with a director, an
418 officer, or a committee member of the association, or an
419 immediate family member thereof, creates a rebuttable
420 presumption that a conflict of interest exists.
421 (g) This subsection may not be waived or limited by the
422 governing documents of the association.
423 Section 7. Paragraph (h) of subsection (1) of section
424 720.306, Florida Statutes, is amended to read:
425 720.306 Meetings of members; voting and election

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426 procedures; amendments.—
427 (1) QUORUM; AMENDMENTS.—
428 (h)1. Except as otherwise provided in this paragraph, any
429 governing document, or amendment to a governing document, that
430 is enacted after July 1, 2021, and that prohibits or regulates
431 rental agreements applies only to a parcel owner who acquires
432 title to the parcel after the effective date of the governing
433 document or amendment, or to a parcel owner who consents,
434 individually or through a representative, to the governing
435 document or amendment.
436 2. Notwithstanding subparagraph 1., an association may
437 amend its governing documents to prohibit or regulate rental
438 agreements for a term of less than 6 months and may prohibit the
439 rental of a parcel for more than three times in a calendar year,
440 and such amendments shall apply to all parcel owners.
441 3. This paragraph does not affect the amendment
442 restrictions for associations of 15 or fewer parcel owners under
443 s. 720.303(1)(f) s. 720.303(1).
444 4. For purposes of this paragraph, a change of ownership
445 does not occur when a parcel owner conveys the parcel to an
446 affiliated entity, when beneficial ownership of the parcel does
447 not change, or when an heir becomes the parcel owner. For
448 purposes of this subparagraph, the term "affiliated entity"
449 means an entity that controls, is controlled by, or is under
450 common control with the parcel owner or that becomes a parent or

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451 successor entity by reason of transfer, merger, consolidation,
452 public offering, reorganization, dissolution or sale of stock,
453 or transfer of membership partnership interests. For a
454 conveyance to be recognized as one made to an affiliated entity,
455 the entity must furnish to the association a document certifying
456 that this subparagraph applies and provide any organizational
457 documents for the parcel owner and the affiliated entity which
458 support the representations in the certificate, as requested by
459 the association.
460 5. For purposes of this paragraph, a change of ownership
461 does occur when, with respect to a parcel owner that is a
462 business entity, every person that owned an interest in the real
463 property at the time of the enactment of the amendment or rule
464 conveys their interest in the real property to an unaffiliated
465 entity.
466 Section 8. Section 720.311, Florida Statutes, is amended
467 to read:
468 720.311 Dispute resolution.—
469 (1) The Legislature finds that alternative dispute
470 resolution has made progress in reducing court dockets and
471 trials and in offering a more efficient, cost-effective option
472 to litigation. The filing of any petition for arbitration tolls
473 or the serving of a demand for presuit mediation as provided for
474 in this section shall toll the applicable statute of
475 limitations. Any recall dispute filed with the department under

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476 s. 720.303(10) must shall be conducted by the department in
477 accordance with the provisions of ss. 718.112(2)(l) and 718.1255
478 and the rules adopted by the division. In addition, the
479 department shall conduct binding arbitration of election
480 disputes between a member and an association in accordance with
481 s. 718.1255 and rules adopted by the division. Election disputes
482 and recall disputes are not eligible for presuit mediation;
483 these disputes must be arbitrated by the department or filed in
484 a court of competent jurisdiction. The arbitration proceeding
485 must be conducted by a department arbitrator or by a private
486 arbitrator certified by the department. At the conclusion of an
487 arbitration proceeding, the department shall charge the parties
488 a fee in an amount adequate to cover all costs and expenses
489 incurred by the department in conducting the proceeding.
490 Initially, the petitioner shall remit a filing fee of at least
491 $200 to the department. The fees paid to the department shall
492 become a recoverable cost in the arbitration proceeding, and the
493 prevailing party in an arbitration proceeding shall recover its
494 reasonable costs and attorney fees in an amount found reasonable
495 by the arbitrator. The department shall adopt rules to
496 effectuate the purposes of this section.
497 (2)(a) Disputes between an association and a parcel owner
498 regarding use of or changes to the parcel or the common areas
499 and other covenant enforcement disputes, disputes regarding
500 amendments to the association documents, disputes regarding

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501 meetings of the board and committees appointed by the board,
502 membership meetings not including election meetings, and access
503 to the official records of the association shall be the subject
504 of a demand for presuit mediation served by an aggrieved party
505 before the dispute is filed in court. Presuit mediation
506 proceedings must be conducted in accordance with the applicable
507 Florida Rules of Civil Procedure, and these proceedings are
508 privileged and confidential to the same extent as court-ordered
509 mediation. Disputes subject to presuit mediation under this
510 section shall not include the collection of any assessment,
511 fine, or other financial obligation, including attorney's fees
512 and costs, claimed to be due or any action to enforce a prior
513 mediation settlement agreement between the parties. Also, in any
514 dispute subject to presuit mediation under this section where
515 emergency relief is required, a motion for temporary injunctive
516 relief may be filed with the court without first complying with
517 the presuit mediation requirements of this section. After any
518 issues regarding emergency or temporary relief are resolved, the
519 court may either refer the parties to a mediation program
520 administered by the courts or require mediation under this
521 section. An arbitrator or judge may not consider any information
522 or evidence arising from the presuit mediation proceeding except
523 in a proceeding to impose sanctions for failure to attend a
524 presuit mediation session or to enforce a mediated settlement
525 agreement. Persons who are not parties to the dispute may not

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526 attend the presuit mediation conference without the consent of
527 all parties, except for counsel for the parties and a corporate
528 representative designated by the association. When mediation is
529 attended by a quorum of the board, such mediation is not a board
530 meeting for purposes of notice and participation set forth in s.
531 720.303. An aggrieved party shall serve on the responding party
532 a written demand to participate in presuit mediation in
533 substantially the following form:
534 STATUTORY OFFER TO PARTICIPATE
535 IN PRESUIT MEDIATION
536 The alleged aggrieved party, ................, hereby
537 demands that ................, as the responding
538 party, engage in mandatory presuit mediation in
539 connection with the following disputes, which by
540 statute are of a type that are subject to presuit
541 mediation:
542 (List specific nature of the dispute or disputes to be
543 mediated and the authority supporting a finding of a
544 violation as to each dispute.)
545 Pursuant to section 720.311, Florida Statutes, this
546 demand to resolve the dispute through presuit
547 mediation is required before a lawsuit can be filed
548 concerning the dispute. Pursuant to the statute, the
549 parties are required to engage in presuit mediation
550 with a neutral third-party mediator in order to

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551 attempt to resolve this dispute without court action,
552 and the aggrieved party demands that you likewise
553 agree to this process. If you fail to participate in
554 the mediation process, suit may be brought against you
555 without further warning.
556 The process of mediation involves a supervised
557 negotiation process in which a trained, neutral third-
558 party mediator meets with both parties and assists
559 them in exploring possible opportunities for resolving
560 part or all of the dispute. By agreeing to participate
561 in presuit mediation, you are not bound in any way to
562 change your position. Furthermore, the mediator has no
563 authority to make any decisions in this matter or to
564 determine who is right or wrong and merely acts as a
565 facilitator to ensure that each party understands the
566 position of the other party and that all options for
567 reasonable settlement are fully explored.
568 If an agreement is reached, it shall be reduced to
569 writing and becomes a binding and enforceable
570 commitment of the parties. A resolution of one or more
571 disputes in this fashion avoids the need to litigate
572 these issues in court. The failure to reach an
573 agreement, or the failure of a party to participate in
574 the process, results in the mediator declaring an
575 impasse in the mediation, after which the aggrieved

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576 party may proceed to court on all outstanding,
577 unsettled disputes. If you have failed or refused to
578 participate in the entire mediation process, you will
579 not be entitled to recover attorney's fees, even if
580 you prevail.
581 The aggrieved party has selected and hereby lists five
582 certified mediators who we believe to be neutral and
583 qualified to mediate the dispute. You have the right
584 to select any one of these mediators. The fact that
585 one party may be familiar with one or more of the
586 listed mediators does not mean that the mediator
587 cannot act as a neutral and impartial facilitator. Any
588 mediator who cannot act in this capacity is required
589 ethically to decline to accept engagement. The
590 mediators that we suggest, and their current hourly
591 rates, are as follows:
592 (List the names, addresses, telephone numbers, and
593 hourly rates of the mediators. Other pertinent
594 information about the background of the mediators may
595 be included as an attachment.)
596 You may contact the offices of these mediators to
597 confirm that the listed mediators will be neutral and
598 will not show any favoritism toward either party. The
599 Florida Supreme Court can provide you a list of
600 certified mediators.

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601 Unless otherwise agreed by the parties, section
602 720.311(2)(b), Florida Statutes, requires that the
603 parties share the costs of presuit mediation equally,
604 including the fee charged by the mediator. An average
605 mediation may require three to four hours of the
606 mediator's time, including some preparation time, and
607 the parties would need to share equally the mediator's
608 fees as well as their own attorney's fees if they
609 choose to employ an attorney in connection with the
610 mediation. However, use of an attorney is not required
611 and is at the option of each party. The mediators may
612 require the advance payment of some or all of the
613 anticipated fees. The aggrieved party hereby agrees to
614 pay or prepay one-half of the mediator's estimated
615 fees and to forward this amount or such other
616 reasonable advance deposits as the mediator requires
617 for this purpose. Any funds deposited will be returned
618 to you if these are in excess of your share of the
619 fees incurred.
620 To begin your participation in presuit mediation to
621 try to resolve the dispute and avoid further legal
622 action, please sign below and clearly indicate which
623 mediator is acceptable to you. We will then ask the
624 mediator to schedule a mutually convenient time and
625 place for the mediation conference to be held. The

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626 mediation conference must be held within ninety (90)
627 days of this date, unless extended by mutual written
628 agreement. In the event that you fail to respond
629 within 20 days from the date of this letter, or if you
630 fail to agree to at least one of the mediators that we
631 have suggested or to pay or prepay to the mediator
632 one-half of the costs involved, the aggrieved party
633 will be authorized to proceed with the filing of a
634 lawsuit against you without further notice and may
635 seek an award of attorney's fees or costs incurred in
636 attempting to obtain mediation.
637 Therefore, please give this matter your immediate
638 attention. By law, your response must be mailed by
639 certified mail, return receipt requested, and by
640 first-class mail to the address shown on this demand.
641 ........................
642 ........................
643 RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR
644 AGREEMENT TO THAT CHOICE.
645 AGREEMENT TO MEDIATE
646 The undersigned hereby agrees to participate in
647 presuit mediation and agrees to attend a mediation
648 conducted by the following mediator or mediators who
649 are listed above as someone who would be acceptable to
650 mediate this dispute:

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651 (List acceptable mediator or mediators.)
652 I/we further agree to pay or prepay one-half of the
653 mediator's fees and to forward such advance deposits
654 as the mediator may require for this purpose.
655 ........................
656 Signature of responding party #1
657 ........................
658 Telephone contact information
659 ........................
660 Signature and telephone contact information of
661 responding party #2 (if applicable)(if property is
662 owned by more than one person, all owners must sign)
663 (b) Service of the statutory demand to participate in
664 presuit mediation shall be effected by sending a letter in
665 substantial conformity with the above form by certified mail,
666 return receipt requested, with an additional copy being sent by
667 regular first-class mail, to the address of the responding party
668 as it last appears on the books and records of the association.
669 The responding party has 20 days from the date of the mailing of
670 the statutory demand to serve a response to the aggrieved party
671 in writing. The response shall be served by certified mail,
672 return receipt requested, with an additional copy being sent by
673 regular first-class mail, to the address shown on the statutory
674 demand. Notwithstanding the foregoing, once the parties have
675 agreed on a mediator, the mediator may reschedule the mediation

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676 for a date and time mutually convenient to the parties. The
677 parties shall share the costs of presuit mediation equally,
678 including the fee charged by the mediator, if any, unless the
679 parties agree otherwise, and the mediator may require advance
680 payment of its reasonable fees and costs. The failure of any
681 party to respond to a demand or response, to agree upon a
682 mediator, to make payment of fees and costs within the time
683 established by the mediator, or to appear for a scheduled
684 mediation session without the approval of the mediator, shall
685 constitute the failure or refusal to participate in the
686 mediation process and shall operate as an impasse in the presuit
687 mediation by such party, entitling the other party to proceed in
688 court and to seek an award of the costs and fees associated with
689 the mediation. Additionally, notwithstanding the provisions of
690 any other law or document, persons who fail or refuse to
691 participate in the entire mediation process may not recover
692 attorney's fees and costs in subsequent litigation relating to
693 the dispute. If any presuit mediation session cannot be
694 scheduled and conducted within 90 days after the offer to
695 participate in mediation was filed, an impasse shall be deemed
696 to have occurred unless both parties agree to extend this
697 deadline.
698 (2)(c) In If presuit mediation as described in paragraph
699 (a) is not successful in resolving all issues between the
700 parties, the parties may file the unresolved dispute in a court

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701 of competent jurisdiction or elect to enter into binding or
702 nonbinding arbitration pursuant to the procedures set forth in
703 s. 718.1255 and rules adopted by the division, with the
704 arbitration proceeding to be conducted by a department
705 arbitrator or by a private arbitrator certified by the
706 department. If all parties do not agree to arbitration
707 proceedings following an unsuccessful presuit mediation, any
708 party may file the dispute in court. A final order resulting
709 from nonbinding arbitration is final and enforceable in the
710 courts if a complaint for trial de novo is not filed in a court
711 of competent jurisdiction within 30 days after entry of the
712 order. As to any issue or dispute that is not resolved at
713 arbitration presuit mediation, and as to any issue that is
714 settled at arbitration presuit mediation but is thereafter
715 subject to an action seeking enforcement of the mediation
716 settlement, the prevailing party in any subsequent arbitration
717 or litigation proceeding may shall be entitled to seek recovery
718 of all costs and attorney attorney's fees incurred in the
719 arbitration presuit mediation process.
720 (3)(d) An A mediator or arbitrator is shall be authorized
721 to conduct mediation or arbitration under this section only if
722 he or she has been certified as a circuit court civil mediator
723 or arbitrator, respectively, pursuant to the requirements
724 established by the Florida Supreme Court. Settlement agreements
725 resulting from mediation shall not have precedential value in

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726 proceedings involving parties other than those participating in
727 the mediation to support either a claim or defense in other
728 disputes.
729 (e) The presuit mediation procedures provided by this
730 subsection may be used by a Florida corporation responsible for
731 the operation of a community in which the voting members are
732 parcel owners or their representatives, in which membership in
733 the corporation is not a mandatory condition of parcel
734 ownership, or which is not authorized to impose an assessment
735 that may become a lien on the parcel.
736 Section 9. Section 720.319, Florida Statutes, is created
737 to read:
738 720.319 Dissolution of homeowners' association.—
739 (1) This section may be cited as the "Homeowners'
740 Association Dissolution and Accountability Act."
741 (2) The Legislature finds that:
742 (a) Homeowners' associations are created as authorized by
743 general law and are subject to covenants that encumber the land
744 and restrict the use of real property.
745 (b) In some circumstances, the continued enforcement of
746 those covenants may no longer serve the homeowners' or
747 community's interest and it is the public policy of this state
748 to provide by general law a method to preserve the value of the
749 property interests and the rights of alienation thereof that
750 homeowners have in their parcels before and after termination.

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751 (c) It is contrary to the public policy of this state to
752 require the continued operation of a homeowners' association
753 when such continuation is made impossible by law or regulation.
754 (d) It is in the best interest of this state to provide
755 for termination of the declaration of covenants in certain
756 circumstances in order to:
757 1. Prevent covenants from impairing the continued
758 productive use of the property.
759 2. Provide fair treatment and just compensation for parcel
760 owners and preserve property values and the local property tax
761 base.
762 3. Preserve the state's long history of protecting
763 homestead property rights by ensuring that such protection is
764 extended to parcel owners whose parcel is their homestead in the
765 context of a termination of a declaration of covenants for an
766 association.
767 (3) A homeowners' association may be terminated by a plan
768 of termination that meets the requirements of this section and
769 is approved by a community association court program under s.
770 720.32.
771 (4) A plan of termination is subject to the following
772 conditions:
773 (a) The total voting interests of the association must
774 include all voting interests for the purpose of considering a
775 plan of termination. A voting interest of the association may

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776 not be suspended for any reason when voting on termination under
777 this section.
778 (b) If the members reject a plan of termination, a
779 subsequent plan of termination under this section may not be
780 considered for at least 18 months after the date of the
781 rejection.
782 (c) A plan of termination must be approved by at least
783 two-thirds of the total voting interests of the association.
784 (d) A parcel owner desiring to reject a plan of
785 termination must do so by either voting in person or by proxy to
786 reject the plan or by delivering a written objection to the
787 association before or at the meeting called under subsection
788 (5).
789 (5)(a) A parcel owner who wishes to terminate a
790 homeowners' association in which he or she is a member must
791 provide to the board of administration a petition for a plan of
792 termination that is signed by at least 50 percent of the voting
793 members of the association. The board must hold a meeting of the
794 members within 60 days after receipt of the signed petition. A
795 voting interest of the association may not be suspended for any
796 reason for purposes of signing the petition or determining
797 whether the 50 percent threshold for such petition has been met
798 under this paragraph.
799 (b) Notice of such meeting must be made in accordance with
800 s. 720.303(2) and include the following information:

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801 1. A copy of the proposed plan of dissolution.
802 2. An explanation of how the common areas and the assets
803 of the association will be managed or transferred.
804 3. The manner in which voting will take place.
805 (c) If the board fails to call a meeting within the 60-day
806 time period, any member may petition a community association
807 court program under s. 720.32 or, if a community association
808 court program does not exist in the judicial circuit in which
809 the association is located, another court of competent
810 jurisdiction for an order compelling compliance with this
811 section.
812 (6) If a plan of termination is approved, the board must
813 submit such plan to the community association court program in
814 the judicial circuit in which the association is located or, if
815 a community association court program does not exist, another
816 court of competent jurisdiction. The court shall examine the
817 plan of termination and determine its procedural sufficiency
818 and, within 45 days after receipt of the plan, notify the
819 association by mail of any procedural deficiencies or that the
820 plan is accepted. If notice is not provided within the 45-day
821 time period, the plan of termination is deemed accepted. If the
822 court determines that the conditions required by this section
823 have been met and that the plan of termination complies with the
824 procedural requirements of this section, the court must
825 authorize the termination and the termination may proceed as

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826 authorized in this section.
827 (7)(a) A plan of termination and the consents or joinders
828 of parcel owners must be recorded in the public records of each
829 county in which any portion of the association is located. The
830 plan is effective only upon recordation or at a later date
831 specified in the plan.
832 (b) Upon recordation or at a later date specified in the
833 plan of termination, title to the association property vests in
834 a termination trustee. The board serves as such trustee unless
835 another person is appointed in the plan of termination. If the
836 board is not the termination trustee, the board must transfer
837 any association property to such trustee. The termination
838 trustee is vested with the powers given by the declaration and
839 bylaws of the association and subsection (9). If the board is
840 unable, unwilling, or fails to act as termination trustee, a
841 parcel owner may petition the community association court
842 program to appoint a termination trustee.
843 (8) If the board fails to hold the meeting under
844 subsection (5), obstructs the termination process, or refuses to
845 record the decision of the members to terminate, a member may
846 file a petition with the community association court program in
847 the judicial circuit in which the association is located or, if
848 a community association court program does not exist, another
849 court of competent jurisdiction. A community association court
850 program may do all of the following:

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851 (a) Verify compliance with the procedural requirements of
852 this section and all statutory voting requirements.
853 (b) Order the Department of State to dissolve the
854 homeowners' association.
855 (c) Appoint a termination trustee to manage the
856 distribution of assets and resolution of liabilities.
857 (9) The approval of the plan of termination does not
858 terminate the board of administration, which shall continue in
859 existence following approval of the plan of termination with all
860 powers and duties such board had before approval of the plan.
861 Notwithstanding any provision to the contrary in the declaration
862 or bylaws, after approval of the plan of termination the board
863 must:
864 (a) Employ directors, agents, attorneys, and other
865 professionals to liquidate or conclude the board's affairs.
866 (b) Conduct the affairs of the association as necessary
867 for the liquidation or termination.
868 (c) Carry out contracts and collect, pay, and settle debts
869 and claims for and against the association.
870 (d) Defend suits brought against the association.
871 (e) Sue in the name of the association for all sums due or
872 owed to the association or to recover any association property.
873 (f) Perform any act necessary to maintain, repair, or
874 demolish unsafe or uninhabitable improvements or other
875 association property in compliance with applicable codes.

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876 (g) Sell at public or private sale or exchange, convey, or
877 otherwise dispose of assets of the association for an amount
878 deemed to be in the best interests of the association, and
879 execute bills of sale and deeds of conveyance in the name of the
880 association.
881 (h) Collect and receive rents, profits, accounts
882 receivable, income, maintenance fees, special assessments, or
883 insurance proceeds for the association.
884 (i) Contract and do anything in the name of the
885 association which is proper or convenient to terminate the
886 affairs of the association.
887 (10)(a) All remaining association assets after the payment
888 of any lawful debts must be distributed equally among members or
889 as otherwise provided in the plan of termination.
890 (b) A member may not be subject to personal liability for
891 unpaid obligations beyond the member's regular assessments or
892 special assessments that existed before the vote for
893 termination.
894 (11)(a) The following actions by an association or the
895 officers or directors thereof are unlawful:
896 1. Failing to call or notice a meeting after receipt of a
897 valid petition for a plan of termination.
898 2. Spending association funds to campaign for or against
899 the plan of termination.
900 3. Concealing any financial or property records relevant

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901 to the plan of termination.
902 (b) An officer or a director who violates paragraph (a) is
903 subject to any of the following:
904 1. A civil penalty of up to $5,000 per violation.
905 2. Removal from office by court order.
906 3. Personal liability for legal fees incurred by the
907 petitioners.
908 Section 10. Section 720.32, Florida Statutes, is created
909 to read:
910 720.32 Community association court program.—
911 (1) It is the intent of the Legislature to encourage and
912 support the judicial circuits of the state to create and
913 maintain a community association court program in each judicial
914 circuit. The purpose of a community association court program is
915 to address disputes that arise between community associations
916 and the members thereof or between members within a community
917 association. It is the intent of the Legislature that this
918 section provides a detailed statewide standard for the creation,
919 operation, and procedures for community association court
920 programs.
921 (2) A circuit court may create and administer a community
922 association court program. The chief judge shall designate at
923 least one judge to preside over the community association court
924 program. The chief judge may issue administrative orders
925 concerning the community association court program.

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926 (3) The community association court program has
927 jurisdiction over disputes, including any related termination or
928 enforcement proceedings, arising under any of the following:
929 (a) Chapter 718, the Condominium Act.
930 (b) Chapter 719, the Cooperative Act.
931 (c) Chapter 720, the Homeowners' Association Act.
932 (4) The community association court program may do all of
933 the following:
934 (a) Enforce all statutory rights of unit owners and parcel
935 owners.
936 (b) Verify and compel compliance with all statutory
937 requirements by community associations, boards of
938 administration, and officers or directors of such boards.
939 (c) Order the Department of State to dissolve a community
940 association.
941 (d) Appoint a termination trustee to manage the
942 distribution of association assets and resolution of
943 liabilities.
944 (e) Impose civil penalties for violations of statutory
945 rights.
946 (f) Issue injunctive relief as appropriate.
947 (g) Award reasonable attorney fees and costs as
948 appropriate.
949 (5) By January 1 of each year, the chief judge in each
950 judicial circuit in which a community association court program

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951 is created shall submit to the President of the Senate and the
952 Speaker of the House of Representatives a report that summarizes
953 the caseload of each community association court program and the
954 outcomes of such caseload.
955 (6) The Office of the State Courts Administrator shall
956 establish procedure, staffing, and reporting requirements for
957 the operation of the community association court program.
958 (7) The costs associated with the creation, operation, and
959 compliance and enforcement duties of the community association
960 court program shall be funded as authorized by and consistent
961 with funding appropriated in the General Appropriations Act.
962 (8) Funds specifically appropriated by an operating
963 appropriation or a nonoperating transfer from the Division of
964 Florida Condominiums, Timeshares, and Mobile Homes Trust Fund to
965 the state court system to support judicial functions relating to
966 community associations which remain unencumbered as of June 30
967 or undisbursed as of September 30 each year shall revert to the
968 Division of Florida Condominiums, Timeshares, and Mobile Homes
969 Trust Fund.
970 Section 11. Subsections (11), (13), and (17) of section
971 26.031, Florida Statutes, are amended to read:
972 26.031 Judicial circuits; number of judges.—The number of
973 circuit judges in each circuit shall be as follows:
974 JUDICIAL CIRCUIT TOTAL
975 (11) Eleventh..........................................8583

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976 (13) Thirteenth........................................4645
977 (17) Seventeenth.......................................5958
978 Section 12. The amendments made by this act to s. 26.031,
979 Florida Statutes, are for the purpose of authorizing additional
980 judgeships specifically for the community association court
981 program created in s. 720.32, Florida Statutes, by this act.
982 Section 13. Paragraph (d) of subsection (1) of section
983 34.01, Florida Statutes, is amended to read:
984 34.01 Jurisdiction of county court.—
985 (1) County courts shall have original jurisdiction:
986 (d) Of disputes occurring in the homeowners' associations
987 as described in s. 720.311(2)(a), which shall be concurrent with
988 jurisdiction of the circuit courts.
989 Section 14. Paragraph (a) of subsection (1) of section
990 336.125, Florida Statutes, is amended to read:
991 336.125 Closing and abandonment of roads; optional
992 conveyance to homeowners' association; traffic control
993 jurisdiction.—
994 (1)(a) In addition to the authority provided in s. 336.12,
995 the governing body of the county may abandon the roads and
996 rights-of-way dedicated in a recorded residential subdivision
997 plat and simultaneously convey the county's interest in such
998 roads, rights-of-way, and appurtenant drainage facilities to a
999 homeowners' association for the subdivision, if the following
1000 conditions have been met:

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1001 1. The homeowners' association has requested the
1002 abandonment and conveyance in writing for the purpose of
1003 converting the subdivision to a gated neighborhood with
1004 restricted public access.
1005 2. No fewer than four-fifths of the owners of record of
1006 property located in the subdivision have consented in writing to
1007 the abandonment and simultaneous conveyance to the homeowners'
1008 association.
1009 3. The homeowners' association is both a corporation not
1010 for profit organized and in good standing under chapter 617, and
1011 a "homeowners' association" as defined in s. 720.301 s.
1012 720.301(9) with the power to levy and collect assessments for
1013 routine and periodic major maintenance and operation of street
1014 lighting, drainage, sidewalks, and pavement in the subdivision.
1015 4. The homeowners' association has entered into and
1016 executed such agreements, covenants, warranties, and other
1017 instruments; has provided, or has provided assurance of, such
1018 funds, reserve funds, and funding sources; and has satisfied
1019 such other requirements and conditions as may be established or
1020 imposed by the county with respect to the ongoing operation,
1021 maintenance, and repair and the periodic reconstruction or
1022 replacement of the roads, drainage, street lighting, and
1023 sidewalks in the subdivision after the abandonment by the
1024 county.
1025 Section 15. Subsection (2) of section 558.002, Florida

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1026 Statutes, is amended to read:
1027 558.002 Definitions.—As used in this chapter, the term:
1028 (2) "Association" has the same meaning as in s. 718.103,
1029 s. 719.103(2), s. 720.301(10) s. 720.301(9), or s. 723.075.
1030 Section 16. Subsection (6) of section 617.0601, Florida
1031 Statutes, is amended to read:
1032 617.0601 Members, generally.—
1033 (6) Subsections (1), (2), (3), and (4) do not apply to a
1034 corporation that is an association as defined in s. 720.301(10)
1035 s. 720.301.
1036 Section 17. Subsection (6) of section 617.0701, Florida
1037 Statutes, is amended to read:
1038 617.0701 Meetings of members, generally; failure to hold
1039 annual meeting; special meeting; consent to corporate actions
1040 without meetings; waiver of notice of meetings.—
1041 (6) Subsections (1) and (3) do not apply to any
1042 corporation that is an association as defined in s. 720.301(10)
1043 s. 720.301; a corporation regulated by chapter 718, chapter 719,
1044 chapter 720, chapter 721, or chapter 723; or a corporation where
1045 membership in such corporation is required pursuant to a
1046 document recorded in the county property records.
1047 Section 18. Subsection (7) of section 617.0721, Florida
1048 Statutes, is amended to read:
1049 617.0721 Voting by members.—
1050 (7) Subsections (1), (5), and (6) do not apply to a

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1051 corporation that is an association, as defined in s. 720.301(10)
1052 s. 720.301, or a corporation regulated by chapter 718 or chapter
1053 719.
1054 Section 19.7. Section 617.0725, Florida Statutes, is
1055 amended to read:
1056 617.0725 Quorum.—An amendment to the articles of
1057 incorporation or the bylaws which adds, changes, or deletes a
1058 greater or lesser quorum or voting requirement must meet the
1059 same quorum or voting requirement and be adopted by the same
1060 vote and voting groups required to take action under the quorum
1061 and voting requirements then in effect or proposed to be
1062 adopted, whichever is greater. This section does not apply to
1063 any corporation that is an association, as defined in s.
1064 720.301(10) s. 720.301(9), or any corporation regulated under
1065 chapter 718 or chapter 719.
1066 Section 20. Subsection (3) of section 617.0808, Florida
1067 Statutes, is amended to read:
1068 617.0808 Removal of directors.—
1069 (3) This section does not apply to any corporation that is
1070 an association, as defined in s. 720.301(10) s. 720.301, or a
1071 corporation regulated under chapter 718 or chapter 719.
1072 Section 21. Section 617.1606, Florida Statutes, is amended
1073 to read:
1074 617.1606 Access to records.—Sections 617.1601-617.1605 do
1075 not apply to a corporation that is an association, as defined in

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/CS/CS/HB 657 2026

1076 s. 720.301(10) s. 720.301, or a corporation regulated under
1077 chapter 718 or chapter 719.
1078 Section 22. Paragraph (b) of subsection (1) of section
1079 718.116, Florida Statutes, is amended to read:
1080 718.116 Assessments; liability; lien and priority;
1081 interest; collection.—
1082 (1)
1083 (b)1. The liability of a first mortgagee or its successor
1084 or assignees who acquire title to a unit by foreclosure or by
1085 deed in lieu of foreclosure for the unpaid assessments that
1086 became due before the mortgagee's acquisition of title is
1087 limited to the lesser of:
1088 a. The unit's unpaid common expenses and regular periodic
1089 assessments which accrued or came due during the 12 months
1090 immediately preceding the acquisition of title and for which
1091 payment in full has not been received by the association; or
1092 b. One percent of the original mortgage debt. The
1093 provisions of this paragraph apply only if the first mortgagee
1094 joined the association as a defendant in the foreclosure action.
1095 Joinder of the association is not required if, on the date the
1096 complaint is filed, the association was dissolved or did not
1097 maintain an office or agent for service of process at a location
1098 which was known to or reasonably discoverable by the mortgagee.
1099 2. An association, or its successor or assignee, that
1100 acquires title to a unit through the foreclosure of its lien for

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1101 assessments is not liable for any unpaid assessments, late fees,
1102 interest, or reasonable attorney's fees and costs that came due
1103 before the association's acquisition of title in favor of any
1104 other association, as defined in s. 718.103 or s. 720.301(10) s.
1105 720.301(9), which holds a superior lien interest on the unit.
1106 This subparagraph is intended to clarify existing law.
1107 Section 23. Paragraph (d) of subsection (2) of section
1108 720.3085, Florida Statutes, is amended to read:
1109 720.3085 Payment for assessments; lien claims.—
1110 (2)
1111 (d) An association, or its successor or assignee, that
1112 acquires title to a parcel through the foreclosure of its lien
1113 for assessments is not liable for any unpaid assessments, late
1114 fees, interest, or reasonable attorney's fees and costs that
1115 came due before the association's acquisition of title in favor
1116 of any other association, as defined in s. 718.103 or s.
1117 720.301(10) s. 720.301(9), which holds a superior lien interest
1118 on the parcel. This paragraph is intended to clarify existing
1119 law.
1120 Section 24. This act shall take effect July 1, 2026.

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COMMERCE COMMITTEE

CS/CS/CS/HB 657 by Rep. Porras
Community Associations

AMENDMENT SUMMARY
February 26, 2026

Amendment #141027 by Rep. Porras (Strike-All):
• Clarifies that the requirement for condominium associations (COAs) to record and
maintain as an official record the recordings of meetings conducted by video conference
applies only to those meetings that are open to unit owners.
• Requires COAs and homeowners’ associations (HOAs) to provide copies of certain
records to law enforcement agencies or prosecuting agencies within 5 days of receiving
a subpoena or written request, and makes it a second-degree misdemeanor for a
director, board member, or community association manager (CAM) or CAM firm of a
COA or HOA to willfully and knowingly fail to provide such records.
• Expands the types of buildings for which a developer must have a turnover inspection
performed to all buildings on condominium property or cooperative property, as
applicable, rather than only those buildings that are three stories or higher in height.
• Limits the types of buildings for which a COA or cooperative association must have a
structural integrity reserve study completed by December 1, 2025, to only those
buildings on condominium or cooperative property, as applicable, that are three
habitable stories or higher in height.
• Defines “habitable” for purposes of the COA Act and Cooperative Association Act, and
makes certain clarifying changes related thereto.
• Allows a COA to designate an independent website, application, or Internet web portal
for unit owners to electronically submit election ballots, in addition – or as an alternative
– to designating an email address.
• Clarifies that the purpose of the community association court program is to provide an
optional, voluntary process for community associations and the members thereof to
address disputes, as an alternative to entering into mediation or arbitration.
• Specifies that the community association court program does not apply to certain
timeshare condominium associations or certain timeshare cooperative associations.

Amendment #719639 by Rep. Sirois (Lines 888-955): The amendment prohibits HOAs from
adopting or enforcing any covenant or rule that requires a specific type of material to be used on
the building or rebuilding of a roof, subject to certain exceptions and requirements.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (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: Commerce Committee
2 Representative Porras offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Section 712.13, Florida Statutes, is created to
7 read:
8 712.13 Governing documents associated with dissolved
9 homeowners' associations.—
10 (1) The Legislature finds that when a homeowners'
11 association has been dissolved, voluntarily or involuntarily,
12 the recorded governing documents created solely for the
13 association's benefit may remain in the county records
14 indefinitely, imposing an undue burden on private property
15 owners. It is the intent of the Legislature to restore and
16 protect private property rights by ensuring that such
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17 encumbrances are properly extinguished or removed from the
18 official records of the county when the association ceases to
19 exist.
20 (2) As used in this section, the term:
21 (a) "Dissolved association" means a homeowners'
22 association that has filed articles of dissolution with the
23 Department of State under chapter 617 or has otherwise ceased
24 its legal operation and existence.
25 (b) "Exclusive easement" means an easement recorded for
26 the sole benefit or use of a homeowners' association or its
27 members.
28 (c) "Governing documents" has the same meaning as in s.
29 720.301.
30 (d) "Servient estate" means the real property burdened by
31 an easement.
32 (3)(a) Upon the dissolution of a homeowners' association,
33 the governing documents of the association, which were recorded
34 in the official records of a county and created solely for the
35 operation or benefit of the dissolved association or its
36 members, are deemed terminated and are unenforceable.
37 (b) The recorded governing documents may not be construed
38 to create any rights for the general public or for any successor
39 entity unless expressly provided by law.
40 (c) The clerk of the circuit court shall, upon receipt of
41 a certified copy of the association's articles of dissolution,
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42 mark or otherwise indicate in the county's official records that
43 the governing documents for the dissolved association are
44 terminated and inactive.
45 (4)(a) An exclusive easement created for the benefit of a
46 homeowners' association or its members must revert to the
47 servient estate upon dissolution of the association if the owner
48 of the servient estate has continuously paid his or her ad
49 valorem taxes on the land encumbered by the easement.
50 (b) Upon reversion, the exclusive easement is extinguished
51 and the owner of the servient estate regains full rights of
52 ownership, possession, and control of the land encumbered by the
53 easement.
54 (c) An easement formerly held by a homeowners' association
55 may not become a public right-of-way, trail, or access route
56 unless a separate, valid written notice in accordance with s.
57 712.06 has been recorded to preserve the easement for the
58 benefit of the public.
59 (5) This section does not impair or extinguish easements,
60 covenants, or restrictions benefiting individual property owners
61 which were separately recorded or preserved under this chapter.
62 (6) This section applies both prospectively and
63 retroactively to homeowners' associations dissolved before, on,
64 or after July 1, 2026.
65 Section 2. Subsections (19) through (35) of section
66 718.103, Florida Statutes, are renumbered as subsections (20)
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67 through (36), respectively, and a new subsection (19) is added
68 to that section, and present subsection (33) of that section is
69 amended to read:
70 718.103 Definitions.—As used in this chapter, the term:
71 (19) "Habitable" means a space in a building for living,
72 sleeping, eating, or cooking. Garages, carports, and storage or
73 utility spaces are not considered habitable.
74 (34)(33) "Video conference" means a real-time audio- and
75 video-based meeting between two or more people in different
76 locations using video-enabled and audio-enabled devices. The
77 notice for any meeting that is open to the unit owners and will
78 be conducted by video conference must have a hyperlink and call-
79 in conference telephone number for unit owners to attend the
80 meeting and must have a physical location where unit owners can
81 also attend the meeting in person. All meetings conducted by
82 video conference which are open to the unit owners must be
83 recorded, and such recording must be maintained as an official
84 record of the association.
85 Section 3. Subsection (8) is added to section 718.104,
86 Florida Statutes, to read:
87 718.104 Creation of condominiums; contents of
88 declaration.—Every condominium created in this state shall be
89 created pursuant to this chapter.
90 (8)(a) Each association formed on or after July 1, 2026,
91 must include the following statement in the governing documents:
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92
93 This association and the association's governing
94 documents are governed by the Florida Condominium Act,
95 as amended from time to time.
96
97 (b) By January 1, 2027, each association in existence
98 before July 1, 2026, must hold a meeting of the members in
99 accordance with s. 718.112 to vote whether to amend the
100 governing documents of the association to include the statement
101 in paragraph (a). The association must obtain the affirmative
102 approval of two-thirds of the units at a meeting of the
103 membership at which a quorum has been attained in order to amend
104 the governing documents under this paragraph.
105 Section 4. Paragraph (c) of subsection (12) of section
106 718.111, Florida Statutes, is amended to read:
107 718.111 The association.—
108 (12) OFFICIAL RECORDS.—
109 (c)1.a. The official records of the association are open
110 to inspection by any association member and any person
111 authorized by an association member as a representative of such
112 member at all reasonable times. The right to inspect the records
113 includes the right to make or obtain copies, at the reasonable
114 expense, if any, of the member and of the person authorized by
115 the association member as a representative of such member. A
116 renter of a unit has a right to inspect and copy only the
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117 declaration of condominium, the association's bylaws and rules,
118 and the inspection reports described in ss. 553.899 and
119 718.301(4)(p). The association may adopt reasonable rules
120 regarding the frequency, time, location, notice, and manner of
121 record inspections and copying but may not require a member to
122 demonstrate any purpose or state any reason for the inspection.
123 The failure of an association to provide the records within 10
124 working days after receipt of a written request creates a
125 rebuttable presumption that the association willfully failed to
126 comply with this paragraph. A unit owner who is denied access to
127 official records is entitled to the actual damages or minimum
128 damages for the association's willful failure to comply. Minimum
129 damages are $50 per calendar day for up to 10 days, beginning on
130 the 11th working day after receipt of the written request. The
131 failure to permit inspection entitles any person prevailing in
132 an enforcement action to recover reasonable attorney fees from
133 the person in control of the records who, directly or
134 indirectly, knowingly denied access to the records. If the
135 requested records are posted on an association's website, or are
136 available for download through an application on a mobile
137 device, the association may fulfill its obligations under this
138 paragraph by directing to the website or the application all
139 persons authorized to request access.
140 b. In response to a written request to inspect records,
141 the association must simultaneously provide to the requestor a
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142 checklist of all records made available for inspection and
143 copying. The checklist must also identify any of the
144 association's official records that were not made available to
145 the requestor. An association must maintain a checklist provided
146 under this sub-subparagraph for 7 years. An association
147 delivering a checklist pursuant to this sub-subparagraph creates
148 a rebuttable presumption that the association has complied with
149 this paragraph.
150 2. A director or member of the board or association or a
151 community association manager who willfully and knowingly or
152 intentionally violates subparagraph 1. commits a misdemeanor of
153 the second degree, punishable as provided in s. 775.082 or s.
154 775.083, and must be removed from office and a vacancy declared.
155 3. A person who willfully and knowingly or intentionally
156 defaces or destroys accounting records that are required by this
157 chapter to be maintained during the period for which such
158 records are required to be maintained, or who willfully and
159 knowingly or intentionally fails to create or maintain
160 accounting records that are required to be created or
161 maintained, with the intent of causing harm to the association
162 or one or more of its members, commits a misdemeanor of the
163 first degree, punishable as provided in s. 775.082 or s.
164 775.083; is personally subject to a civil penalty pursuant to s.
165 718.501(1)(e); and must be removed from office and a vacancy
166 declared.
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167 4. A person who willfully and knowingly or intentionally
168 refuses to release or otherwise produce association records with
169 the intent to avoid or escape detection, arrest, trial, or
170 punishment for the commission of a crime, or to assist another
171 person with such avoidance or escape, commits a felony of the
172 third degree, punishable as provided in s. 775.082, s. 775.083,
173 or s. 775.084, and must be removed from office and a vacancy
174 declared.
175 5. The association shall maintain an adequate number of
176 copies of the declaration, articles of incorporation, bylaws,
177 and rules, and all amendments to each of the foregoing, as well
178 as the question and answer sheet as described in s. 718.504 and
179 the most recent annual financial statement and annual budget
180 required under this section, on the condominium property to
181 ensure their availability to unit owners and prospective
182 purchasers, and may charge its actual costs for preparing and
183 furnishing these documents to those requesting the documents. An
184 association shall allow a member or his or her authorized
185 representative to use a portable device, including a smartphone,
186 tablet, portable scanner, or any other technology capable of
187 scanning or taking photographs, to make an electronic copy of
188 the official records in lieu of the association's providing the
189 member or his or her authorized representative with a copy of
190 such records. The association may not charge a member or his or
191 her authorized representative for the use of a portable device.
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192 Notwithstanding this paragraph, the following records are not
193 accessible to unit owners:
194 a. Any record protected by the lawyer-client privilege as
195 described in s. 90.502 and any record protected by the work-
196 product privilege, including a record prepared by an association
197 attorney or prepared at the attorney's express direction, which
198 reflects a mental impression, conclusion, litigation strategy,
199 or legal theory of the attorney or the association, and which
200 was prepared exclusively for civil or criminal litigation or for
201 adversarial administrative proceedings, or which was prepared in
202 anticipation of such litigation or proceedings until the
203 conclusion of the litigation or proceedings.
204 b. Information obtained by an association in connection
205 with the approval of the lease, sale, or other transfer of a
206 unit.
207 c. Personnel records of association or management company
208 employees, including, but not limited to, disciplinary, payroll,
209 health, and insurance records. For purposes of this sub-
210 subparagraph, the term "personnel records" does not include
211 written employment agreements with an association employee or
212 management company, or budgetary or financial records that
213 indicate the compensation paid to an association employee.
214 d. Medical records of unit owners.
215 e. Social security numbers, driver license numbers, credit
216 card numbers, e-mail addresses, telephone numbers, facsimile
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217 numbers, emergency contact information, addresses of a unit
218 owner other than as provided to fulfill the association's notice
219 requirements, and other personal identifying information of any
220 person, excluding the person's name, unit designation, mailing
221 address, property address, and any address, e-mail address, or
222 facsimile number provided to the association to fulfill the
223 association's notice requirements. Notwithstanding the
224 restrictions in this sub-subparagraph, an association may print
225 and distribute to unit owners a directory containing the name,
226 unit address, and all telephone numbers of each unit owner.
227 However, an owner may exclude his or her telephone numbers from
228 the directory by so requesting in writing to the association. An
229 owner may consent in writing to the disclosure of other contact
230 information described in this sub-subparagraph. The association
231 is not liable for the inadvertent disclosure of information that
232 is protected under this sub-subparagraph if the information is
233 included in an official record of the association and is
234 voluntarily provided by an owner and not requested by the
235 association.
236 f. Electronic security measures that are used by the
237 association to safeguard data, including passwords.
238 g. The software and operating system used by the
239 association which allow the manipulation of data, even if the
240 owner owns a copy of the same software used by the association.
241 The data is part of the official records of the association.
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242 h. All affirmative acknowledgments made pursuant to s.
243 718.121(4)(c).
244 6.a. If an association receives a subpoena or written
245 request for records from a law enforcement agency or prosecuting
246 agency as defined in 112.531, the association must provide a
247 copy of such records or otherwise make the records available for
248 inspection and copying to the law enforcement agency or
249 prosecuting agency within 5 business days after receipt of the
250 subpoena or written request, unless otherwise specified by the
251 law enforcement agency, prosecuting agency, or subpoena or
252 written request. An association must assist a law enforcement
253 agency and a prosecting agency in an investigation to the extent
254 permissible by law.
255 b. A director or member of the board or association or a
256 community association manager who willfully and knowingly fails
257 to provide a copy of records, or otherwise fails to make the
258 records available for inspection and copying, to a law
259 enforcement agency or prosecuting agency as required by sub-
260 subparagraph a. commits a misdemeanor of the second degree,
261 punishable as provided in s. 775.082 or s. 775.083.
262 Section 5. Paragraph (g) of subsection (2) of section
263 718.112, Florida Statutes, is amended to read:
264 718.112 Bylaws.—

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265 (2) REQUIRED PROVISIONS.—The bylaws shall provide for the
266 following and, if they do not do so, shall be deemed to include
267 the following:
268 (g) Structural integrity reserve study.—
269 1. A residential condominium association must have a
270 structural integrity reserve study completed at least every 10
271 years after the condominium's creation for each building on the
272 condominium property that is three habitable stories or higher
273 in height, as determined by the Florida Building Code, which
274 includes, at a minimum, a study of the following items as
275 related to the structural integrity and safety of the building:
276 a. Roof.
277 b. Structure, including load-bearing walls and other
278 primary structural members and primary structural systems as
279 those terms are defined in s. 627.706.
280 c. Fireproofing and fire protection systems.
281 d. Plumbing.
282 e. Electrical systems.
283 f. Waterproofing and exterior painting.
284 g. Windows and exterior doors.
285 h. Any other item that has a deferred maintenance expense
286 or replacement cost that exceeds $25,000 or the inflation-
287 adjusted amount determined by the division under subparagraph
288 (f)6., whichever is greater, and the failure to replace or
289 maintain such item negatively affects the items listed in sub-
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290 subparagraphs a.-g., as determined by the visual inspection
291 portion of the structural integrity reserve study.
292 2. A structural integrity reserve study is based on a
293 visual inspection of the condominium property.
294 3.a. A structural integrity reserve study, including the
295 visual inspection portion of the structural integrity reserve
296 study, must be performed or verified by an engineer licensed
297 under chapter 471, an architect licensed under chapter 481, or a
298 person certified as a reserve specialist or professional reserve
299 analyst by the Community Associations Institute or the
300 Association of Professional Reserve Analysts.
301 b. Any design professional as defined in s. 558.002 or any
302 contractor licensed under chapter 489 who bids to perform a
303 structural integrity reserve study must disclose in writing to
304 the association his or her intent to bid on any services related
305 to any maintenance, repair, or replacement that may be
306 recommended by the structural integrity reserve study. Any
307 design professional as defined in s. 558.002 or contractor
308 licensed under chapter 489 who submits a bid to the association
309 for performing any services recommended by the structural
310 integrity reserve study may not have an interest, directly or
311 indirectly, in the firm or entity providing the association's
312 structural integrity reserve study or be a relative of any
313 person having a direct or indirect interest in such firm, unless
314 such relationship is disclosed to the association in writing. As
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315 used in this section, the term "relative" means a relative
316 within the third degree of consanguinity by blood or marriage. A
317 contract for services is voidable and terminates upon the
318 association filing a written notice terminating the contract if
319 the design professional or licensed contractor failed to provide
320 the written disclosure of the interests or relationships
321 required under this paragraph. A design professional or licensed
322 contractor may be subject to discipline under the applicable
323 practice act for his or her profession for failure to provide
324 the written disclosure of the interests or relationships
325 required under this paragraph.
326 4.a. At a minimum, a structural integrity reserve study
327 must identify each item of the condominium property being
328 visually inspected, state the estimated remaining useful life
329 and the estimated replacement cost or deferred maintenance
330 expense of each item of the condominium property being visually
331 inspected, and provide a reserve funding plan or schedule with a
332 recommended annual reserve amount that achieves the estimated
333 replacement cost or deferred maintenance expense of each item of
334 condominium property being visually inspected by the end of the
335 estimated remaining useful life of the item. At a minimum, the
336 structural integrity reserve study must include a recommendation
337 for a reserve funding schedule based on a baseline funding plan
338 that provides a reserve funding goal in which the reserve
339 funding for each budget year is sufficient to maintain the
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340 reserve cash balance above zero. The study may recommend other
341 types of reserve funding schedules, provided that each
342 recommended schedule is sufficient to meet the association's
343 maintenance obligation.
344 b. The structural integrity reserve study may recommend
345 that reserves do not need to be maintained for any item for
346 which an estimate of useful life and an estimate of replacement
347 cost cannot be determined, or the study may recommend a deferred
348 maintenance expense amount for such item. The structural
349 integrity reserve study may recommend that reserves for
350 replacement costs do not need to be maintained for any item with
351 an estimated remaining useful life of greater than 25 years, but
352 the study may recommend a deferred maintenance expense amount
353 for such item. If the structural integrity reserve study
354 recommends reserves for any item for which reserves are not
355 required under this paragraph, the amount of the recommended
356 reserves for such item must be separately identified in the
357 structural integrity reserve study as an item for which reserves
358 are not required under this paragraph.
359 c. The structural integrity reserve study must take into
360 consideration the funding method or methods used by the
361 association to fund its maintenance and reserve funding
362 obligations through regular assessments, special assessments,
363 lines of credit, or loans. If the structural integrity reserve
364 study is performed before the association has approved a special
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365 assessment or secured a line of credit or a loan, the structural
366 integrity reserve study must be updated to reflect the funding
367 method selected by the association and its effect on the reserve
368 funding schedule, including any anticipated change in the amount
369 of regular assessments. The structural integrity reserve study
370 may be updated to reflect any changes to the useful life of the
371 reserve items after such items are repaired or replaced and the
372 effect such repair or replacement will have on the reserve
373 funding schedule. The association must obtain an updated
374 structural integrity reserve study before adopting any budget in
375 which the reserve funding from regular assessments, special
376 assessments, lines of credit, or loans does not align with the
377 funding plan from the most recent version of the structural
378 integrity reserve study.
379 5. This paragraph does not apply to buildings less than
380 three habitable stories in height; single-family, two-family,
381 three-family, or four-family dwellings with three or fewer
382 habitable stories above ground; any portion or component of a
383 building that has not been submitted to the condominium form of
384 ownership; or any portion or component of a building that is
385 maintained by a party other than the association.
386 6. Before a developer turns over control of an association
387 to unit owners other than the developer, the developer must have
388 a turnover inspection report in compliance with s. 718.301(4)(p)

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389 and (q) for each building on the condominium property that is
390 three stories or higher in height.
391 7. Associations existing on or before July 1, 2022, which
392 are controlled by unit owners other than the developer, must
393 have a structural integrity reserve study completed by December
394 31, 2025, for each building on the condominium property that is
395 three habitable stories or higher in height. An association that
396 is required to complete a milestone inspection in accordance
397 with s. 553.899 on or before December 31, 2026, may complete the
398 structural integrity reserve study simultaneously with the
399 milestone inspection. In no event may the structural integrity
400 reserve study be completed after December 31, 2026.
401 8. If the milestone inspection required by s. 553.899, or
402 an inspection completed for a similar local requirement, was
403 performed within the past 5 years and meets the requirements of
404 this paragraph, such inspection may be used in place of the
405 visual inspection portion of the structural integrity reserve
406 study.
407 9. If the association completes a milestone inspection
408 required by s. 553.899, or an inspection completed for a similar
409 local requirement, the association may delay performance of a
410 required structural integrity reserve study for no more than the
411 2 consecutive budget years immediately following the milestone
412 inspection in order to allow the association to focus its

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413 financial resources on completing the repair and maintenance
414 recommendations of the milestone inspection.
415 10. If the officers or directors of an association
416 willfully and knowingly fail to complete a structural integrity
417 reserve study pursuant to this paragraph, such failure is a
418 breach of an officer's or a director's fiduciary relationship to
419 the unit owners under s. 718.111(1). An officer or a director of
420 an association must sign an affidavit acknowledging receipt of
421 the completed structural integrity reserve study.
422 11. Within 45 days after receiving the structural
423 integrity reserve study, the association must distribute a copy
424 of the study to each unit owner or deliver to each unit owner a
425 notice that the completed study is available for inspection and
426 copying upon a written request. Distribution of a copy of the
427 study or notice must be made by United States mail or personal
428 delivery to the mailing address, property address, or any other
429 address of the owner provided to fulfill the association's
430 notice requirements under this chapter, or by electronic
431 transmission to the e-mail address or facsimile number provided
432 to fulfill the association's notice requirements to unit owners
433 who previously consented to receive notice by electronic
434 transmission.
435 12. Within 45 days after receiving the structural
436 integrity reserve study, the association must provide the
437 division with a statement indicating that the study was
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438 completed and that the association provided or made available
439 such study to each unit owner in accordance with this section.
440 The statement must be provided to the division in the manner
441 established by the division using a form posted on the
442 division's website.
443 13. The division shall adopt by rule the form for the
444 structural integrity reserve study in coordination with the
445 Florida Building Commission.
446 Section 6. Subsections (6) and (7) of section 718.1255,
447 Florida Statutes, are renumbered as subsections (5) and (6),
448 respectively, and paragraphs (a), (h), (k), and (m) of
449 subsection (4) and present subsection (5) of that section are
450 amended, to read:
451 718.1255 Alternative dispute resolution; mediation;
452 nonbinding arbitration; applicability.—
453 (4) NONBINDING ARBITRATION AND MEDIATION OF DISPUTES.—The
454 Division of Florida Condominiums, Timeshares, and Mobile Homes
455 of the Department of Business and Professional Regulation may
456 employ full-time attorneys to act as arbitrators to conduct the
457 arbitration hearings provided by this chapter. The division may
458 also certify attorneys who are not employed by the division to
459 act as arbitrators to conduct the arbitration hearings provided
460 by this chapter. A person may not be employed by the department
461 as a full-time arbitrator unless he or she is a member in good
462 standing of The Florida Bar. A person may only be certified by
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463 the division to act as an arbitrator if he or she has been a
464 member in good standing of The Florida Bar for at least 5 years
465 and has mediated or arbitrated at least 10 disputes involving
466 condominiums in this state during the 3 years immediately
467 preceding the date of application, mediated or arbitrated at
468 least 30 disputes in any subject area in this state during the 3
469 years immediately preceding the date of application, or attained
470 board certification in real estate law or condominium and
471 planned development law from The Florida Bar. Arbitrator
472 certification is valid for 1 year. An arbitrator who does not
473 maintain the minimum qualifications for initial certification
474 may not have his or her certification renewed. The department
475 may not enter into a legal services contract for an arbitration
476 hearing under this chapter with an attorney who is not a
477 certified arbitrator unless a certified arbitrator is not
478 available within 50 miles of the dispute. The department shall
479 adopt rules of procedure to govern such arbitration hearings
480 including mediation incident thereto. The decision of an
481 arbitrator is final; however, a decision is not deemed final
482 agency action. Nothing in this provision shall be construed to
483 foreclose parties from proceeding in a trial de novo unless the
484 parties have agreed that the arbitration is binding. If judicial
485 proceedings are initiated, the final decision of the arbitrator
486 is admissible in evidence in the trial de novo.

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487 (a) Before the institution of court litigation, a party to
488 a dispute, other than an election or recall dispute, must shall
489 either petition the division for nonbinding arbitration or
490 request that the case be referred to mediation initiate presuit
491 mediation as provided in subsection (5). Arbitration is binding
492 on the parties if all parties in arbitration agree to be bound
493 in a writing filed in arbitration. The petition must be
494 accompanied by a filing fee in the amount of $50. Filing fees
495 collected under this section must be used to defray the expenses
496 of the alternative dispute resolution program.
497 (h) Mediation proceedings must generally be conducted in
498 accordance with the Florida Rules of Civil Procedure, and these
499 proceedings are privileged and confidential to the same extent
500 as court-ordered mediation. Persons who are not parties to the
501 dispute are not allowed to attend the mediation conference
502 without the consent of all parties, with the exception of
503 counsel for the parties and corporate representatives designated
504 to appear for a party. If the mediator declares an impasse after
505 a mediation conference has been held, the arbitration proceeding
506 terminates, unless all parties agree in writing to continue the
507 arbitration proceeding, in which case the arbitrator's decision
508 shall be binding or nonbinding, as agreed upon by the parties;
509 in the arbitration proceeding, the arbitrator shall not consider
510 any evidence relating to the unsuccessful mediation except in a
511 proceeding to impose sanctions for failure to appear at the
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512 mediation conference. If the parties do not agree to continue
513 arbitration, the arbitrator shall enter an order of dismissal,
514 and either party may institute a suit in a community association
515 court program under s. 720.32 or a court of competent
516 jurisdiction. The parties may seek to recover any costs and
517 attorney fees incurred in connection with arbitration and
518 mediation proceedings under this section as part of the costs
519 and fees that may be recovered by the prevailing party in any
520 subsequent litigation.
521 (k) The arbitration decision shall be rendered within 30
522 days after the hearing and presented to the parties in writing.
523 An arbitration decision is final in those disputes in which the
524 parties have agreed to be bound. An arbitration decision is also
525 final if a complaint for a trial de novo is not filed in a
526 community association court program under s. 720.32 or a court
527 of competent jurisdiction in which the condominium is located
528 within 30 days. The right to file for a trial de novo entitles
529 the parties to file a complaint in the appropriate trial court
530 for a judicial resolution of the dispute. The prevailing party
531 in an arbitration proceeding shall be awarded the costs of the
532 arbitration and reasonable attorney fees in an amount determined
533 by the arbitrator. Such an award shall include the costs and
534 reasonable attorney fees incurred in the arbitration proceeding
535 as well as the costs and reasonable attorney fees incurred in
536 preparing for and attending any scheduled mediation. An
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537 arbitrator's failure to render a written decision within 30 days
538 after the hearing may result in the cancellation of his or her
539 arbitration certification.
540 (m) Any party to an arbitration proceeding may enforce an
541 arbitration award by filing a petition in a community
542 association court program under s. 720.32 or a court of
543 competent jurisdiction in which the condominium is located. A
544 petition may not be granted unless the time for appeal by the
545 filing of a complaint for trial de novo has expired. If a
546 complaint for a trial de novo has been filed, a petition may not
547 be granted with respect to an arbitration award that has been
548 stayed. If the petition for enforcement is granted, the
549 petitioner shall recover reasonable attorney fees and costs
550 incurred in enforcing the arbitration award. A mediation
551 settlement may also be enforced through the county or circuit
552 court or a community association court program, as applicable,
553 and any costs and fees incurred in the enforcement of a
554 settlement agreement reached at mediation must be awarded to the
555 prevailing party in any enforcement action.
556 (5) PRESUIT MEDIATION.—In lieu of the initiation of
557 nonbinding arbitration as provided in subsections (1)-(4), a
558 party may submit a dispute to presuit mediation in accordance
559 with s. 720.311; however, election and recall disputes are not
560 eligible for mediation and such disputes must be arbitrated by
561 the division or filed in a court of competent jurisdiction.
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562 Section 7. Subsection (7) of section 718.128, Florida
563 Statutes, is amended to read:
564 718.128 Electronic voting.—The association may conduct
565 elections and other unit owner votes through an Internet-based
566 online voting system if a unit owner consents, electronically or
567 in writing, to online voting and if the following requirements
568 are met:
569 (7)(a) Unless the association has adopted electronic
570 voting in accordance with subsections (1)-(6), the association
571 must designate an e-mail address, independent website,
572 application, or Internet web portal for receipt of
573 electronically transmitted ballots. Electronically transmitted
574 ballots must meet all the requirements of this subsection.
575 (b) A unit owner may electronically transmit a ballot to
576 the e-mail address, independent website, application, or
577 Internet web portal designated by the association without
578 complying with s. 718.112(2)(d)3. s. 718.112(2)(d)4. or the
579 rules providing for the secrecy of ballots adopted by the
580 division. The association must count completed ballots that are
581 electronically transmitted to the designated e-mail address,
582 independent website, application, or Internet web portal,
583 provided the completed ballots comply with the requirements of
584 this subsection.
585 (c) A ballot that is electronically transmitted to the
586 association must include all of the following:
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587 1. A space for the unit owner to type in his or her unit
588 number.
589 2. A space for the unit owner to type in his or her first
590 and last name, which also functions as the signature of the unit
591 owner for purposes of signing the ballot.
592 3. The following statement in capitalized letters and in a
593 font size larger than any other font size used in the electronic
594 transmission e-mail from the association to the unit owner:
595
596 WAIVING THE SECRECY OF YOUR BALLOT IS YOUR CHOICE. YOU
597 DO NOT HAVE TO WAIVE THE SECRECY OF YOUR BALLOT IN
598 ORDER TO VOTE. BY TRANSMITTING YOUR COMPLETED BALLOT
599 THROUGH ELECTRONIC MEANS E-MAIL TO THE ASSOCIATION,
600 YOU WAIVE THE SECRECY OF YOUR COMPLETED BALLOT. IF YOU
601 DO NOT WISH TO WAIVE YOUR SECRECY BUT WISH TO
602 PARTICIPATE IN THE VOTE THAT IS THE SUBJECT OF THIS
603 BALLOT, PLEASE ATTEND THE IN-PERSON MEETING DURING
604 WHICH THE MATTER WILL BE VOTED ON.
605
606 (d) A unit owner must transmit his or her completed ballot
607 to the e-mail address, independent website, application, or
608 Internet web portal designated by the association no later than
609 the scheduled date and time of the meeting during which the
610 matter is being voted on.

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611 (e) There is a rebuttable presumption that an association
612 has reviewed all folders associated with the e-mail address,
613 independent website, application, or Internet web portal
614 designated by the association to receive ballots if a board
615 member, an officer, or an agent of the association, or a manager
616 licensed under part VIII of chapter 468, provides a sworn
617 affidavit attesting to such review.
618 Section 8. Subsections (19) through (29) of section
619 719.103, Florida Statutes, are renumbered as subsections (20)
620 through (30), respectively, and a new subsection (19) is added
621 to that section, to read:
622 719.103 Definitions.—As used in this chapter:
623 (19) "Habitable" means a space in a building for living,
624 sleeping, eating, or cooking. Garages, carports, and storage or
625 utility spaces are not considered habitable.
626 Section 9. Paragraph (k) of subsection (1) of section
627 719.106, Florida Statutes, is amended to read:
628 719.106 Bylaws; cooperative ownership.—
629 (1) MANDATORY PROVISIONS.—The bylaws or other cooperative
630 documents shall provide for the following, and if they do not,
631 they shall be deemed to include the following:
632 (k) Structural integrity reserve study.—
633 1. A residential cooperative association must have a
634 structural integrity reserve study completed at least every 10
635 years for each building on the cooperative property that is
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636 three habitable stories or higher in height, as determined by
637 the Florida Building Code, that includes, at a minimum, a study
638 of the following items as related to the structural integrity
639 and safety of the building:
640 a. Roof.
641 b. Structure, including load-bearing walls and other
642 primary structural members and primary structural systems as
643 those terms are defined in s. 627.706.
644 c. Fireproofing and fire protection systems.
645 d. Plumbing.
646 e. Electrical systems.
647 f. Waterproofing and exterior painting.
648 g. Windows and exterior doors.
649 h. Any other item that has a deferred maintenance expense
650 or replacement cost that exceeds $25,000 or the inflation-
651 adjusted amount determined by the division under subparagraph
652 (j)6., whichever is greater, and the failure to replace or
653 maintain such item negatively affects the items listed in sub-
654 subparagraphs a.-g., as determined by the visual inspection
655 portion of the structural integrity reserve study.
656 2. A structural integrity reserve study is based on a
657 visual inspection of the cooperative property.
658 3.a. A structural integrity reserve study, including the
659 visual inspection portion of the structural integrity reserve
660 study, must be performed or verified by an engineer licensed
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661 under chapter 471, an architect licensed under chapter 481, or a
662 person certified as a reserve specialist or professional reserve
663 analyst by the Community Associations Institute or the
664 Association of Professional Reserve Analysts.
665 b. Any design professional as defined in s. 558.002(7) or
666 contractor licensed under chapter 489 who bids to perform a
667 structural integrity reserve study must disclose in writing to
668 the association his or her intent to bid on any services related
669 to any maintenance, repair, or replacement that may be
670 recommended by the structural integrity reserve study. Any
671 design professional as defined in s. 558.002 or contractor
672 licensed under chapter 489 who submits a bid to the association
673 for performing any services recommended by the structural
674 integrity reserve study may not have an interest, directly or
675 indirectly, in the firm or entity providing the association's
676 structural integrity reserve study or be a relative of any
677 person having a direct or indirect interest in such firm, unless
678 such relationship is disclosed to the association in writing. As
679 used in this section, the term "relative" means a relative
680 within the third degree of consanguinity by blood or marriage. A
681 contract for services is voidable and terminates upon the
682 association filing a written notice terminating the contract if
683 the design professional or licensed contractor failed to provide
684 the written disclosure of the relationship required under this
685 paragraph. A design professional or licensed contractor may be
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686 subject to discipline under the applicable practice act for his
687 or her profession for failure to provide the written disclosure
688 of the relationship required under this subparagraph.
689 4.a. At a minimum, a structural integrity reserve study
690 must identify each item of the cooperative property being
691 visually inspected, state the estimated remaining useful life
692 and the estimated replacement cost or deferred maintenance
693 expense of each item of the cooperative property being visually
694 inspected, and provide a reserve funding schedule with a
695 recommended annual reserve amount that achieves the estimated
696 replacement cost or deferred maintenance expense of each item of
697 cooperative property being visually inspected by the end of the
698 estimated remaining useful life of the item. The structural
699 integrity reserve study may recommend that reserves do not need
700 to be maintained for any item for which an estimate of useful
701 life and an estimate of replacement cost cannot be determined,
702 or the study may recommend a deferred maintenance expense amount
703 for such item. At a minimum, the structural integrity reserve
704 study must include a recommendation for a reserve funding
705 schedule based on a baseline funding plan that provides a
706 reserve funding goal in which the reserve funding for each
707 budget year is sufficient to maintain the reserve cash balance
708 above zero. The study may recommend other types of reserve
709 funding schedules, provided that each recommended schedule is
710 sufficient to meet the association's maintenance obligation.
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711 b. The structural integrity reserve study may recommend
712 that reserves for replacement costs do not need to be maintained
713 for any item with an estimated remaining useful life of greater
714 than 25 years, but the study may recommend a deferred
715 maintenance expense amount for such item. If the structural
716 integrity reserve study recommends reserves for any item for
717 which reserves are not required under this paragraph, the amount
718 of the recommended reserves for such item must be separately
719 identified in the structural integrity reserve study as an item
720 for which reserves are not required under this paragraph.
721 c. The structural integrity reserve study must take into
722 consideration the funding method or methods used by the
723 association to fund its maintenance and reserve funding
724 obligations through regular assessments, special assessments,
725 lines of credit, or loans. If the structural integrity reserve
726 study is performed before the association has approved a special
727 assessment or secured a line of credit or a loan, the structural
728 integrity reserve study must be updated to reflect the funding
729 method selected by the association and its effect on the reserve
730 funding schedule, including any anticipated change in the amount
731 of regular assessments. The structural integrity reserve study
732 may be updated to reflect any changes to the useful life of the
733 reserve items after such items are repaired or replaced, and the
734 effect such repair or replacement will have on the reserve
735 funding schedule. The association must obtain an updated
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736 structural integrity reserve study before adopting any budget in
737 which the reserve funding from regular assessments, special
738 assessments, lines of credit, or loans does not align with the
739 funding plan from the most recent version of the structural
740 integrity reserve study.
741 5. This paragraph does not apply to buildings less than
742 three habitable stories in height; single-family, two-family,
743 three-family, or four-family dwellings with three or fewer
744 habitable stories above ground; any portion or component of a
745 building that has not been submitted to the cooperative form of
746 ownership; or any portion or component of a building that is
747 maintained by a party other than the association.
748 6. Before a developer turns over control of an association
749 to unit owners other than the developer, the developer must have
750 a turnover inspection report in compliance with s. 719.301(4)(p)
751 and (q) for each building on the cooperative property that is
752 three stories or higher in height.
753 7. Associations existing on or before July 1, 2022, which
754 are controlled by unit owners other than the developer, must
755 have a structural integrity reserve study completed by December
756 31, 2024, for each building on the cooperative property that is
757 three habitable stories or higher in height. An association that
758 is required to complete a milestone inspection on or before
759 December 31, 2026, in accordance with s. 553.899 may complete
760 the structural integrity reserve study simultaneously with the
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761 milestone inspection. In no event may the structural integrity
762 reserve study be completed after December 31, 2026.
763 8. If the milestone inspection required by s. 553.899, or
764 an inspection completed for a similar local requirement, was
765 performed within the past 5 years and meets the requirements of
766 this paragraph, such inspection may be used in place of the
767 visual inspection portion of the structural integrity reserve
768 study.
769 9. If the association completes a milestone inspection
770 required by s. 553.899, or an inspection completed for a similar
771 local requirement, the association may delay performance of a
772 required structural integrity reserve study for no more than the
773 2 consecutive budget years immediately following the milestone
774 inspection in order to allow the association to focus its
775 financial resources on completing the repair and maintenance
776 recommendations of the milestone inspection.
777 10. If the officers or directors of an association
778 willfully and knowingly fail to complete a structural integrity
779 reserve study pursuant to this paragraph, such failure is a
780 breach of an officer's and director's fiduciary relationship to
781 the unit owners under s. 719.104(9). An officer or a director of
782 the association must sign an affidavit acknowledging receipt of
783 the completed structural integrity reserve study.
784 11. Within 45 days after receiving the structural
785 integrity reserve study, the association must distribute a copy
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786 of the study to each unit owner or deliver to each unit owner a
787 notice that the completed study is available for inspection and
788 copying upon a written request. Distribution of a copy of the
789 study or notice must be made by United States mail or personal
790 delivery at the mailing address, property address, or any other
791 address of the owner provided to fulfill the association's
792 notice requirements under this chapter, or by electronic
793 transmission to the e-mail address or facsimile number provided
794 to fulfill the association's notice requirements to unit owners
795 who previously consented to receive notice by electronic
796 transmission.
797 12. Within 45 days after receiving the structural
798 integrity reserve study, the association must provide the
799 division with a statement indicating that the study was
800 completed and that the association provided or made available
801 such study to each unit owner in accordance with this section.
802 Such statement must be provided to the division in the manner
803 established by the division using a form posted on the
804 division's website.
805 13. The division shall adopt by rule the form for the
806 structural integrity reserve study in coordination with the
807 Florida Building Commission.
808 Section 10. Subsections (8) through (13) of section
809 720.301, Florida Statutes, are renumbered as subsections (9)

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810 through (14), respectively, and a new subsection (8) is added to
811 that section, to read:
812 720.301 Definitions.—As used in this chapter, the term:
813 (8) "Financial statements" means a comprehensive report
814 prepared in accordance with generally accepted accounting
815 principles which accurately reflects the financial condition and
816 operation of a homeowners' association for a specified reporting
817 period. This report must include, at a minimum, a balance sheet;
818 an income and expense statement; a budget comparison; and a
819 complete set of bank statements, including copies of check
820 images for all disbursements the association made during the
821 reporting period, for each bank account belonging to the
822 association.
823 Section 11. Subsection (2) of section 720.302, Florida
824 Statutes, is amended to read:
825 720.302 Purposes, scope, and application.—
826 (2) The Legislature recognizes that it is not in the best
827 interest of homeowners' associations or the individual
828 association members thereof to create or impose a bureau or
829 other agency of state government to regulate the affairs of
830 homeowners' associations. However, in accordance with s.
831 720.311, the Legislature finds that homeowners' associations and
832 their individual members will benefit from an expedited
833 alternative process for resolution of election and recall
834 disputes and presuit mediation of other disputes involving
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835 covenant enforcement and authorizes the department to hear,
836 administer, and determine these disputes as more fully set forth
837 in this chapter. Further, the Legislature recognizes that
838 certain contract rights have been created for the benefit of
839 homeowners' associations and members thereof before the
840 effective date of this act and that ss. 720.301-720.407 are not
841 intended to impair such contract rights, including, but not
842 limited to, the rights of the developer to complete the
843 community as initially contemplated.
844 Section 12. Subsections (11) through (15) of section
845 720.303, Florida Statutes, are renumbered as subsections (12)
846 through (16), respectively, subsection (1) is amended, paragraph
847 (i) of subsection (5) is amended, and a new subsection (11) is
848 added to that section, to read:
849 720.303 Association powers and duties; meetings of board;
850 official records; budgets; financial reporting; association
851 funds; recalls.—
852 (1) POWERS AND DUTIES.—
853 (a) An association that operates a community as defined in
854 s. 720.301 must be operated by an association that is a Florida
855 corporation. After October 1, 1995, the association must be
856 incorporated and the initial governing documents must be
857 recorded in the official records of the county in which the
858 community is located. An association may operate more than one
859 community.
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860 (b) The officers and directors of an association are
861 subject to s. 617.0830 and have a fiduciary relationship to the
862 members who are served by the association.
863 (c) The powers and duties of an association include those
864 set forth in this chapter and, except as expressly limited or
865 restricted in this chapter, those set forth in the governing
866 documents.
867 1. Each association formed on or after July 1, 2026, must
868 include the following statement in the governing documents:
869
870 This association and the association's governing
871 documents are governed by the Florida Homeowners'
872 Association Act, as amended from time to time.
873
874 2. By January 1, 2027, each association in existence
875 before July 1, 2026, must hold a meeting of the members in
876 accordance with s. 720.306 to vote whether to amend the
877 governing documents of the association to include the statement
878 in subparagraph 1. The association must obtain the affirmative
879 approval of two-thirds of the voting interests of the
880 association at a meeting of the membership at which a quorum has
881 been attained in order to amend the governing documents under
882 this subparagraph.
883 (d) After control of the association is obtained by
884 members other than the developer, the association may institute,
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885 maintain, settle, or appeal actions or hearings in its name on
886 behalf of all members concerning matters of common interest to
887 the members, including, but not limited to, the common areas;
888 roof or structural components of a building, or other
889 improvements for which the association is responsible;
890 mechanical, electrical, or plumbing elements serving an
891 improvement or building for which the association is
892 responsible; representations of the developer pertaining to any
893 existing or proposed commonly used facility; and protest of ad
894 valorem taxes on commonly used facilities. The association may
895 defend actions in eminent domain or bring inverse condemnation
896 actions. Before commencing litigation against any party in the
897 name of the association involving amounts in controversy in
898 excess of $100,000, the association must obtain the affirmative
899 approval of a majority of the voting interests at a meeting of
900 the membership at which a quorum has been attained. This
901 paragraph subsection does not limit any statutory or common-law
902 right of any individual member or class of members to bring any
903 action without participation by the association.
904 (e) A member does not have authority to act for the
905 association by virtue of being a member. An association may have
906 more than one class of members and may issue membership
907 certificates.
908 (f) An association of 15 or fewer parcel owners may
909 enforce only the requirements of those deed restrictions
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910 established prior to the purchase of each parcel upon an
911 affected parcel owner or owners.
912 (5) INSPECTION AND COPYING OF RECORDS.—
913 (i)1. If an association receives a subpoena or written
914 request for records from a law enforcement agency or prosecuting
915 agency as defined in 112.531, the association must provide a
916 copy of such records or otherwise make the records available for
917 inspection and copying to a law enforcement agency or
918 prosecuting agency within 5 business days after receipt of the
919 subpoena or written request, unless otherwise specified by the
920 law enforcement agency, prosecuting agency, or subpoena or
921 written request. An association must assist a law enforcement
922 agency in its investigation to the extent permissible by law.
923 2. A director or member of the board or association or a
924 community association manager who willfully and knowingly fails
925 to provide a copy of records to a law enforcement agency or
926 prosecuting agency, or otherwise fails to make the records
927 available for inspection and copying, as required by
928 subparagraph 1. commits a misdemeanor of the second degree,
929 punishable as provided in s. 775.082 or s. 775.083.
930 (11) CONFLICTS OF INTEREST.—
931 (a) A director, an officer, or a committee member of an
932 association owes a duty of loyalty to the association and its
933 members.

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934 (b) A conflict of interest exists when a director, an
935 officer, or a committee member has a direct or an indirect
936 financial interest in a transaction, contract, or decision under
937 consideration by the association.
938 (c) The director, officer, or committee member with a
939 conflict of interest must disclose the nature and extent of the
940 conflict in writing to the board before any discussion or vote
941 occurs on the matter.
942 (d) After disclosure of the conflict of interest, the
943 conflicted director, officer, or committee member may not
944 participate in any discussion or vote on the matter.
945 (e) A transaction involving a conflict of interest is
946 voidable by the association unless the transaction was approved
947 by a majority of the voting interests of the association after
948 full disclosure by the conflicted director, officer, or
949 committee member has occurred.
950 (f) Compensating or contracting with a director, an
951 officer, or a committee member of the association, or an
952 immediate family member thereof, creates a rebuttable
953 presumption that a conflict of interest exists.
954 (g) This subsection may not be waived or limited by the
955 governing documents of the association.
956 Section 13. Paragraph (h) of subsection (1) of section
957 720.306, Florida Statutes, is amended to read:

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958 720.306 Meetings of members; voting and election
959 procedures; amendments.—
960 (1) QUORUM; AMENDMENTS.—
961 (h)1. Except as otherwise provided in this paragraph, any
962 governing document, or amendment to a governing document, that
963 is enacted after July 1, 2021, and that prohibits or regulates
964 rental agreements applies only to a parcel owner who acquires
965 title to the parcel after the effective date of the governing
966 document or amendment, or to a parcel owner who consents,
967 individually or through a representative, to the governing
968 document or amendment.
969 2. Notwithstanding subparagraph 1., an association may
970 amend its governing documents to prohibit or regulate rental
971 agreements for a term of less than 6 months and may prohibit the
972 rental of a parcel for more than three times in a calendar year,
973 and such amendments shall apply to all parcel owners.
974 3. This paragraph does not affect the amendment
975 restrictions for associations of 15 or fewer parcel owners under
976 s. 720.303(1)(f) s. 720.303(1).
977 4. For purposes of this paragraph, a change of ownership
978 does not occur when a parcel owner conveys the parcel to an
979 affiliated entity, when beneficial ownership of the parcel does
980 not change, or when an heir becomes the parcel owner. For
981 purposes of this subparagraph, the term "affiliated entity"
982 means an entity that controls, is controlled by, or is under
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983 common control with the parcel owner or that becomes a parent or
984 successor entity by reason of transfer, merger, consolidation,
985 public offering, reorganization, dissolution or sale of stock,
986 or transfer of membership partnership interests. For a
987 conveyance to be recognized as one made to an affiliated entity,
988 the entity must furnish to the association a document certifying
989 that this subparagraph applies and provide any organizational
990 documents for the parcel owner and the affiliated entity which
991 support the representations in the certificate, as requested by
992 the association.
993 5. For purposes of this paragraph, a change of ownership
994 does occur when, with respect to a parcel owner that is a
995 business entity, every person that owned an interest in the real
996 property at the time of the enactment of the amendment or rule
997 conveys their interest in the real property to an unaffiliated
998 entity.
999 Section 14. Section 720.311, Florida Statutes, is amended
1000 to read:
1001 720.311 Dispute resolution.—
1002 (1) The Legislature finds that alternative dispute
1003 resolution has made progress in reducing court dockets and
1004 trials and in offering a more efficient, cost-effective option
1005 to litigation. The filing of any petition for arbitration tolls
1006 or the serving of a demand for presuit mediation as provided for
1007 in this section shall toll the applicable statute of
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1008 limitations. Any recall dispute filed with the department under
1009 s. 720.303(10) must shall be conducted by the department in
1010 accordance with the provisions of ss. 718.112(2)(l) and 718.1255
1011 and the rules adopted by the division. In addition, the
1012 department shall conduct binding arbitration of election
1013 disputes between a member and an association in accordance with
1014 s. 718.1255 and rules adopted by the division. Election disputes
1015 and recall disputes are not eligible for presuit mediation;
1016 these disputes must be arbitrated by the department or filed in
1017 a court of competent jurisdiction. The arbitration proceeding
1018 must be conducted by a department arbitrator or by a private
1019 arbitrator certified by the department. At the conclusion of an
1020 arbitration proceeding, the department shall charge the parties
1021 a fee in an amount adequate to cover all costs and expenses
1022 incurred by the department in conducting the proceeding.
1023 Initially, the petitioner shall remit a filing fee of at least
1024 $200 to the department. The fees paid to the department shall
1025 become a recoverable cost in the arbitration proceeding, and the
1026 prevailing party in an arbitration proceeding shall recover its
1027 reasonable costs and attorney fees in an amount found reasonable
1028 by the arbitrator. The department shall adopt rules to
1029 effectuate the purposes of this section.
1030 (2)(a) Disputes between an association and a parcel owner
1031 regarding use of or changes to the parcel or the common areas
1032 and other covenant enforcement disputes, disputes regarding
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1033 amendments to the association documents, disputes regarding
1034 meetings of the board and committees appointed by the board,
1035 membership meetings not including election meetings, and access
1036 to the official records of the association shall be the subject
1037 of a demand for presuit mediation served by an aggrieved party
1038 before the dispute is filed in court. Presuit mediation
1039 proceedings must be conducted in accordance with the applicable
1040 Florida Rules of Civil Procedure, and these proceedings are
1041 privileged and confidential to the same extent as court-ordered
1042 mediation. Disputes subject to presuit mediation under this
1043 section shall not include the collection of any assessment,
1044 fine, or other financial obligation, including attorney's fees
1045 and costs, claimed to be due or any action to enforce a prior
1046 mediation settlement agreement between the parties. Also, in any
1047 dispute subject to presuit mediation under this section where
1048 emergency relief is required, a motion for temporary injunctive
1049 relief may be filed with the court without first complying with
1050 the presuit mediation requirements of this section. After any
1051 issues regarding emergency or temporary relief are resolved, the
1052 court may either refer the parties to a mediation program
1053 administered by the courts or require mediation under this
1054 section. An arbitrator or judge may not consider any information
1055 or evidence arising from the presuit mediation proceeding except
1056 in a proceeding to impose sanctions for failure to attend a
1057 presuit mediation session or to enforce a mediated settlement
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1058 agreement. Persons who are not parties to the dispute may not
1059 attend the presuit mediation conference without the consent of
1060 all parties, except for counsel for the parties and a corporate
1061 representative designated by the association. When mediation is
1062 attended by a quorum of the board, such mediation is not a board
1063 meeting for purposes of notice and participation set forth in s.
1064 720.303. An aggrieved party shall serve on the responding party
1065 a written demand to participate in presuit mediation in
1066 substantially the following form:

1067 STATUTORY OFFER TO PARTICIPATE
1068 IN PRESUIT MEDIATION

1069 The alleged aggrieved party, ................, hereby
1070 demands that ................, as the responding
1071 party, engage in mandatory presuit mediation in
1072 connection with the following disputes, which by
1073 statute are of a type that are subject to presuit
1074 mediation:

1075 (List specific nature of the dispute or disputes to be
1076 mediated and the authority supporting a finding of a
1077 violation as to each dispute.)

1078 Pursuant to section 720.311, Florida Statutes, this
1079 demand to resolve the dispute through presuit
1080 mediation is required before a lawsuit can be filed
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1081 concerning the dispute. Pursuant to the statute, the
1082 parties are required to engage in presuit mediation
1083 with a neutral third-party mediator in order to
1084 attempt to resolve this dispute without court action,
1085 and the aggrieved party demands that you likewise
1086 agree to this process. If you fail to participate in
1087 the mediation process, suit may be brought against you
1088 without further warning.

1089 The process of mediation involves a supervised
1090 negotiation process in which a trained, neutral third-
1091 party mediator meets with both parties and assists
1092 them in exploring possible opportunities for resolving
1093 part or all of the dispute. By agreeing to participate
1094 in presuit mediation, you are not bound in any way to
1095 change your position. Furthermore, the mediator has no
1096 authority to make any decisions in this matter or to
1097 determine who is right or wrong and merely acts as a
1098 facilitator to ensure that each party understands the
1099 position of the other party and that all options for
1100 reasonable settlement are fully explored.

1101 If an agreement is reached, it shall be reduced to
1102 writing and becomes a binding and enforceable
1103 commitment of the parties. A resolution of one or more
1104 disputes in this fashion avoids the need to litigate
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1105 these issues in court. The failure to reach an
1106 agreement, or the failure of a party to participate in
1107 the process, results in the mediator declaring an
1108 impasse in the mediation, after which the aggrieved
1109 party may proceed to court on all outstanding,
1110 unsettled disputes. If you have failed or refused to
1111 participate in the entire mediation process, you will
1112 not be entitled to recover attorney's fees, even if
1113 you prevail.

1114 The aggrieved party has selected and hereby lists five
1115 certified mediators who we believe to be neutral and
1116 qualified to mediate the dispute. You have the right
1117 to select any one of these mediators. The fact that
1118 one party may be familiar with one or more of the
1119 listed mediators does not mean that the mediator
1120 cannot act as a neutral and impartial facilitator. Any
1121 mediator who cannot act in this capacity is required
1122 ethically to decline to accept engagement. The
1123 mediators that we suggest, and their current hourly
1124 rates, are as follows:

1125 (List the names, addresses, telephone numbers, and
1126 hourly rates of the mediators. Other pertinent
1127 information about the background of the mediators may
1128 be included as an attachment.)
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1129 You may contact the offices of these mediators to
1130 confirm that the listed mediators will be neutral and
1131 will not show any favoritism toward either party. The
1132 Florida Supreme Court can provide you a list of
1133 certified mediators.

1134 Unless otherwise agreed by the parties, section
1135 720.311(2)(b), Florida Statutes, requires that the
1136 parties share the costs of presuit mediation equally,
1137 including the fee charged by the mediator. An average
1138 mediation may require three to four hours of the
1139 mediator's time, including some preparation time, and
1140 the parties would need to share equally the mediator's
1141 fees as well as their own attorney's fees if they
1142 choose to employ an attorney in connection with the
1143 mediation. However, use of an attorney is not required
1144 and is at the option of each party. The mediators may
1145 require the advance payment of some or all of the
1146 anticipated fees. The aggrieved party hereby agrees to
1147 pay or prepay one-half of the mediator's estimated
1148 fees and to forward this amount or such other
1149 reasonable advance deposits as the mediator requires
1150 for this purpose. Any funds deposited will be returned
1151 to you if these are in excess of your share of the
1152 fees incurred.

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1153 To begin your participation in presuit mediation to
1154 try to resolve the dispute and avoid further legal
1155 action, please sign below and clearly indicate which
1156 mediator is acceptable to you. We will then ask the
1157 mediator to schedule a mutually convenient time and
1158 place for the mediation conference to be held. The
1159 mediation conference must be held within ninety (90)
1160 days of this date, unless extended by mutual written
1161 agreement. In the event that you fail to respond
1162 within 20 days from the date of this letter, or if you
1163 fail to agree to at least one of the mediators that we
1164 have suggested or to pay or prepay to the mediator
1165 one-half of the costs involved, the aggrieved party
1166 will be authorized to proceed with the filing of a
1167 lawsuit against you without further notice and may
1168 seek an award of attorney's fees or costs incurred in
1169 attempting to obtain mediation.

1170 Therefore, please give this matter your immediate
1171 attention. By law, your response must be mailed by
1172 certified mail, return receipt requested, and by
1173 first-class mail to the address shown on this demand.

1174 ........................
1175 ........................

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1176 RESPONDING PARTY: YOUR SIGNATURE INDICATES YOUR
1177 AGREEMENT TO THAT CHOICE.

1178 AGREEMENT TO MEDIATE

1179 The undersigned hereby agrees to participate in
1180 presuit mediation and agrees to attend a mediation
1181 conducted by the following mediator or mediators who
1182 are listed above as someone who would be acceptable to
1183 mediate this dispute:

1184 (List acceptable mediator or mediators.)

1185 I/we further agree to pay or prepay one-half of the
1186 mediator's fees and to forward such advance deposits
1187 as the mediator may require for this purpose.

1188 ........................
1189 Signature of responding party #1

1190 ........................
1191 Telephone contact information

1192 ........................
1193 Signature and telephone contact information of
1194 responding party #2 (if applicable)(if property is
1195 owned by more than one person, all owners must sign)

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1196 (b) Service of the statutory demand to participate in
1197 presuit mediation shall be effected by sending a letter in
1198 substantial conformity with the above form by certified mail,
1199 return receipt requested, with an additional copy being sent by
1200 regular first-class mail, to the address of the responding party
1201 as it last appears on the books and records of the association.
1202 The responding party has 20 days from the date of the mailing of
1203 the statutory demand to serve a response to the aggrieved party
1204 in writing. The response shall be served by certified mail,
1205 return receipt requested, with an additional copy being sent by
1206 regular first-class mail, to the address shown on the statutory
1207 demand. Notwithstanding the foregoing, once the parties have
1208 agreed on a mediator, the mediator may reschedule the mediation
1209 for a date and time mutually convenient to the parties. The
1210 parties shall share the costs of presuit mediation equally,
1211 including the fee charged by the mediator, if any, unless the
1212 parties agree otherwise, and the mediator may require advance
1213 payment of its reasonable fees and costs. The failure of any
1214 party to respond to a demand or response, to agree upon a
1215 mediator, to make payment of fees and costs within the time
1216 established by the mediator, or to appear for a scheduled
1217 mediation session without the approval of the mediator, shall
1218 constitute the failure or refusal to participate in the
1219 mediation process and shall operate as an impasse in the presuit
1220 mediation by such party, entitling the other party to proceed in
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1221 court and to seek an award of the costs and fees associated with
1222 the mediation. Additionally, notwithstanding the provisions of
1223 any other law or document, persons who fail or refuse to
1224 participate in the entire mediation process may not recover
1225 attorney's fees and costs in subsequent litigation relating to
1226 the dispute. If any presuit mediation session cannot be
1227 scheduled and conducted within 90 days after the offer to
1228 participate in mediation was filed, an impasse shall be deemed
1229 to have occurred unless both parties agree to extend this
1230 deadline.
1231 (2)(c) In If presuit mediation as described in paragraph
1232 (a) is not successful in resolving all issues between the
1233 parties, the parties may file the unresolved dispute in a court
1234 of competent jurisdiction or elect to enter into binding or
1235 nonbinding arbitration pursuant to the procedures set forth in
1236 s. 718.1255 and rules adopted by the division, with the
1237 arbitration proceeding to be conducted by a department
1238 arbitrator or by a private arbitrator certified by the
1239 department. If all parties do not agree to arbitration
1240 proceedings following an unsuccessful presuit mediation, any
1241 party may file the dispute in court. A final order resulting
1242 from nonbinding arbitration is final and enforceable in the
1243 courts if a complaint for trial de novo is not filed in a court
1244 of competent jurisdiction within 30 days after entry of the
1245 order. As to any issue or dispute that is not resolved at
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1246 arbitration presuit mediation, and as to any issue that is
1247 settled at arbitration presuit mediation but is thereafter
1248 subject to an action seeking enforcement of the mediation
1249 settlement, the prevailing party in any subsequent arbitration
1250 or litigation proceeding may shall be entitled to seek recovery
1251 of all costs and attorney attorney's fees incurred in the
1252 arbitration presuit mediation process.
1253 (3)(d) An A mediator or arbitrator is shall be authorized
1254 to conduct mediation or arbitration under this section only if
1255 he or she has been certified as a circuit court civil mediator
1256 or arbitrator, respectively, pursuant to the requirements
1257 established by the Florida Supreme Court. Settlement agreements
1258 resulting from mediation shall not have precedential value in
1259 proceedings involving parties other than those participating in
1260 the mediation to support either a claim or defense in other
1261 disputes.
1262 (e) The presuit mediation procedures provided by this
1263 subsection may be used by a Florida corporation responsible for
1264 the operation of a community in which the voting members are
1265 parcel owners or their representatives, in which membership in
1266 the corporation is not a mandatory condition of parcel
1267 ownership, or which is not authorized to impose an assessment
1268 that may become a lien on the parcel.
1269 Section 15. Section 720.319, Florida Statutes, is created
1270 to read:
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1271 720.319 Dissolution of homeowners' association.—
1272 (1) This section may be cited as the "Homeowners'
1273 Association Dissolution and Accountability Act."
1274 (2) The Legislature finds that:
1275 (a) Homeowners' associations are created as authorized by
1276 general law and are subject to covenants that encumber the land
1277 and restrict the use of real property.
1278 (b) In some circumstances, the continued enforcement of
1279 those covenants may no longer serve the homeowners' or
1280 community's interest and it is the public policy of this state
1281 to provide by general law a method to preserve the value of the
1282 property interests and the rights of alienation thereof that
1283 homeowners have in their parcels before and after termination.
1284 (c) It is contrary to the public policy of this state to
1285 require the continued operation of a homeowners' association
1286 when such continuation is made impossible by law or regulation.
1287 (d) It is in the best interest of this state to provide
1288 for termination of the declaration of covenants in certain
1289 circumstances in order to:
1290 1. Prevent covenants from impairing the continued
1291 productive use of the property.
1292 2. Provide fair treatment and just compensation for parcel
1293 owners and preserve property values and the local property tax
1294 base.

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1295 3. Preserve the state's long history of protecting
1296 homestead property rights by ensuring that such protection is
1297 extended to parcel owners whose parcel is their homestead in the
1298 context of a termination of a declaration of covenants for an
1299 association.
1300 (3) A homeowners' association may be terminated by a plan
1301 of termination that meets the requirements of this section and
1302 is approved by a community association court program under s.
1303 720.32.
1304 (4) A plan of termination is subject to the following
1305 conditions:
1306 (a) The total voting interests of the association must
1307 include all voting interests for the purpose of considering a
1308 plan of termination. A voting interest of the association may
1309 not be suspended for any reason when voting on termination under
1310 this section.
1311 (b) If the members reject a plan of termination, a
1312 subsequent plan of termination under this section may not be
1313 considered for at least 18 months after the date of the
1314 rejection.
1315 (c) A plan of termination must be approved by at least
1316 two-thirds of the total voting interests of the association.
1317 (d) A parcel owner desiring to reject a plan of
1318 termination must do so by either voting in person or by proxy to
1319 reject the plan or by delivering a written objection to the
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1320 association before or at the meeting called under subsection
1321 (5).
1322 (5)(a) A parcel owner who wishes to terminate a
1323 homeowners' association in which he or she is a member must
1324 provide to the board of administration a petition for a plan of
1325 termination that is signed by at least 50 percent of the voting
1326 members of the association. The board must hold a meeting of the
1327 members within 60 days after receipt of the signed petition. A
1328 voting interest of the association may not be suspended for any
1329 reason for purposes of signing the petition or determining
1330 whether the 50 percent threshold for such petition has been met
1331 under this paragraph.
1332 (b) Notice of such meeting must be made in accordance with
1333 s. 720.303(2) and include the following information:
1334 1. A copy of the proposed plan of dissolution.
1335 2. An explanation of how the common areas and the assets
1336 of the association will be managed or transferred.
1337 3. The manner in which voting will take place.
1338 (c) If the board fails to call a meeting within the 60-day
1339 time period, any member may petition a community association
1340 court program under s. 720.32 or, if a community association
1341 court program does not exist in the judicial circuit in which
1342 the association is located, another court of competent
1343 jurisdiction for an order compelling compliance with this
1344 section.
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1345 (6) If a plan of termination is approved, the board must
1346 submit such plan to the community association court program in
1347 the judicial circuit in which the association is located or, if
1348 a community association court program does not exist, another
1349 court of competent jurisdiction. The court shall examine the
1350 plan of termination and determine its procedural sufficiency
1351 and, within 45 days after receipt of the plan, notify the
1352 association by mail of any procedural deficiencies or that the
1353 plan is accepted. If notice is not provided within the 45-day
1354 time period, the plan of termination is deemed accepted. If the
1355 court determines that the conditions required by this section
1356 have been met and that the plan of termination complies with the
1357 procedural requirements of this section, the court must
1358 authorize the termination and the termination may proceed as
1359 authorized in this section.
1360 (7)(a) A plan of termination and the consents or joinders
1361 of parcel owners must be recorded in the public records of each
1362 county in which any portion of the association is located. The
1363 plan is effective only upon recordation or at a later date
1364 specified in the plan.
1365 (b) Upon recordation or at a later date specified in the
1366 plan of termination, title to the association property vests in
1367 a termination trustee. The board serves as such trustee unless
1368 another person is appointed in the plan of termination. If the
1369 board is not the termination trustee, the board must transfer
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1370 any association property to such trustee. The termination
1371 trustee is vested with the powers given by the declaration and
1372 bylaws of the association and subsection (9). If the board is
1373 unable, unwilling, or fails to act as termination trustee, a
1374 parcel owner may petition the community association court
1375 program to appoint a termination trustee.
1376 (8) If the board fails to hold the meeting under
1377 subsection (5), obstructs the termination process, or refuses to
1378 record the decision of the members to terminate, a member may
1379 file a petition with the community association court program in
1380 the judicial circuit in which the association is located or, if
1381 a community association court program does not exist, another
1382 court of competent jurisdiction. A community association court
1383 program may do all of the following:
1384 (a) Verify compliance with the procedural requirements of
1385 this section and all statutory voting requirements.
1386 (b) Order the Department of State to dissolve the
1387 homeowners' association.
1388 (c) Appoint a termination trustee to manage the
1389 distribution of assets and resolution of liabilities.
1390 (9) The approval of the plan of termination does not
1391 terminate the board of administration, which shall continue in
1392 existence following approval of the plan of termination with all
1393 powers and duties such board had before approval of the plan.
1394 Notwithstanding any provision to the contrary in the declaration
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Amendment No.

1395 or bylaws, after approval of the plan of termination the board
1396 must:
1397 (a) Employ directors, agents, attorneys, and other
1398 professionals to liquidate or conclude the board's affairs.
1399 (b) Conduct the affairs of the association as necessary
1400 for the liquidation or termination.
1401 (c) Carry out contracts and collect, pay, and settle debts
1402 and claims for and against the association.
1403 (d) Defend suits brought against the association.
1404 (e) Sue in the name of the association for all sums due or
1405 owed to the association or to recover any association property.
1406 (f) Perform any act necessary to maintain, repair, or
1407 demolish unsafe or uninhabitable improvements or other
1408 association property in compliance with applicable codes.
1409 (g) Sell at public or private sale or exchange, convey, or
1410 otherwise dispose of assets of the association for an amount
1411 deemed to be in the best interests of the association, and
1412 execute bills of sale and deeds of conveyance in the name of the
1413 association.
1414 (h) Collect and receive rents, profits, accounts
1415 receivable, income, maintenance fees, special assessments, or
1416 insurance proceeds for the association.
1417 (i) Contract and do anything in the name of the
1418 association which is proper or convenient to terminate the
1419 affairs of the association.
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1420 (10)(a) All remaining association assets after the payment
1421 of any lawful debts must be distributed equally among members or
1422 as otherwise provided in the plan of termination.
1423 (b) A member may not be subject to personal liability for
1424 unpaid obligations beyond the member's regular assessments or
1425 special assessments that existed before the vote for
1426 termination.
1427 (11)(a) The following actions by an association or the
1428 officers or directors thereof are unlawful:
1429 1. Failing to call or notice a meeting after receipt of a
1430 valid petition for a plan of termination.
1431 2. Spending association funds to campaign for or against
1432 the plan of termination.
1433 3. Concealing any financial or property records relevant
1434 to the plan of termination.
1435 (b) An officer or a director who violates paragraph (a) is
1436 subject to any of the following:
1437 1. A civil penalty of up to $5,000 per violation.
1438 2. Removal from office by court order.
1439 3. Personal liability for legal fees incurred by the
1440 petitioners.
1441 Section 16. Section 720.32, Florida Statutes, is created
1442 to read:
1443 720.32 Community association court program.—

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1444 (1) It is the intent of the Legislature to encourage and
1445 support the judicial circuits of the state to create and
1446 maintain a community association court program in each judicial
1447 circuit. The purpose of a community association court program is
1448 to provide an optional, voluntary process for community
1449 associations and the members thereof to address disputes, as an
1450 alternative to entering into mediation or arbitration. It is the
1451 intent of the Legislature that this section provides a detailed
1452 statewide standard for the creation, operation, and procedures
1453 for community association court programs.
1454 (2) A circuit court may create and administer a community
1455 association court program. The chief judge shall designate at
1456 least one judge to preside over the community association court
1457 program. The chief judge may issue administrative orders
1458 concerning the community association court program.
1459 (3) The community association court program has
1460 jurisdiction over disputes, including any related termination or
1461 enforcement proceedings, arising under any of the following:
1462 (a) Chapter 718, the Condominium Act.
1463 (b) Chapter 719, the Cooperative Act.
1464 (c) Chapter 720, the Homeowners' Association Act.
1465 (4) The community association court program may do all of
1466 the following:
1467 (a) Enforce all statutory rights of unit owners and parcel
1468 owners.
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1469 (b) Verify and compel compliance with all statutory
1470 requirements by community associations, boards of
1471 administration, and officers or directors of such boards.
1472 (c) Order the Department of State to dissolve a community
1473 association.
1474 (d) Appoint a termination trustee to manage the
1475 distribution of association assets and resolution of
1476 liabilities.
1477 (e) Impose civil penalties for violations of statutory
1478 rights.
1479 (f) Issue injunctive relief as appropriate.
1480 (g) Award reasonable attorney fees and costs as
1481 appropriate.
1482 (5) By January 1 of each year, the chief judge in each
1483 judicial circuit in which a community association court program
1484 is created shall submit to the President of the Senate and the
1485 Speaker of the House of Representatives a report that summarizes
1486 the caseload of each community association court program and the
1487 outcomes of such caseload.
1488 (6) The Office of the State Courts Administrator shall
1489 establish procedure, staffing, and reporting requirements for
1490 the operation of the community association court program.
1491 (7) This section does not apply to timeshare condominium
1492 associations or timeshare cooperative associations unless the

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1493 facilities of such associations include homestead condominium
1494 units or homestead cooperative units.
1495 (8) The costs associated with the creation, operation, and
1496 compliance and enforcement duties of the community association
1497 court program shall be funded as authorized by and consistent
1498 with funding appropriated in the General Appropriations Act.
1499 (9) Funds specifically appropriated by an operating
1500 appropriation or a nonoperating transfer from the Division of
1501 Florida Condominiums, Timeshares, and Mobile Homes Trust Fund to
1502 the state court system to support judicial functions relating to
1503 community associations which remain unencumbered as of June 30
1504 or undisbursed as of September 30 each year shall revert to the
1505 Division of Florida Condominiums, Timeshares, and Mobile Homes
1506 Trust Fund.
1507 Section 17. Subsections (11), (13), and (17) of section
1508 26.031, Florida Statutes, are amended to read:
1509 26.031 Judicial circuits; number of judges.—The number of
1510 circuit judges in each circuit shall be as follows:
1511 JUDICIAL CIRCUIT TOTAL
1512 (11) Eleventh..........................................8583
1513 (13) Thirteenth........................................4645
1514 (17) Seventeenth.......................................5958
1515 Section 18. The amendments made by this act to s. 26.031,
1516 Florida Statutes, are for the purpose of authorizing additional

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1517 judgeships specifically for the community association court
1518 program created in s. 720.32, Florida Statutes, by this act.
1519 Section 19. Paragraph (d) of subsection (1) of section
1520 34.01, Florida Statutes, is amended to read:
1521 34.01 Jurisdiction of county court.—
1522 (1) County courts shall have original jurisdiction:
1523 (d) Of disputes occurring in the homeowners' associations
1524 as described in s. 720.311(2)(a), which shall be concurrent with
1525 jurisdiction of the circuit courts.
1526 Section 20. Paragraph (a) of subsection (1) of section
1527 336.125, Florida Statutes, is amended to read:
1528 336.125 Closing and abandonment of roads; optional
1529 conveyance to homeowners' association; traffic control
1530 jurisdiction.—
1531 (1)(a) In addition to the authority provided in s. 336.12,
1532 the governing body of the county may abandon the roads and
1533 rights-of-way dedicated in a recorded residential subdivision
1534 plat and simultaneously convey the county's interest in such
1535 roads, rights-of-way, and appurtenant drainage facilities to a
1536 homeowners' association for the subdivision, if the following
1537 conditions have been met:
1538 1. The homeowners' association has requested the
1539 abandonment and conveyance in writing for the purpose of
1540 converting the subdivision to a gated neighborhood with
1541 restricted public access.
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1542 2. No fewer than four-fifths of the owners of record of
1543 property located in the subdivision have consented in writing to
1544 the abandonment and simultaneous conveyance to the homeowners'
1545 association.
1546 3. The homeowners' association is both a corporation not
1547 for profit organized and in good standing under chapter 617, and
1548 a "homeowners' association" as defined in s. 720.301 s.
1549 720.301(9) with the power to levy and collect assessments for
1550 routine and periodic major maintenance and operation of street
1551 lighting, drainage, sidewalks, and pavement in the subdivision.
1552 4. The homeowners' association has entered into and
1553 executed such agreements, covenants, warranties, and other
1554 instruments; has provided, or has provided assurance of, such
1555 funds, reserve funds, and funding sources; and has satisfied
1556 such other requirements and conditions as may be established or
1557 imposed by the county with respect to the ongoing operation,
1558 maintenance, and repair and the periodic reconstruction or
1559 replacement of the roads, drainage, street lighting, and
1560 sidewalks in the subdivision after the abandonment by the
1561 county.
1562 Section 21. Subsection (2) of section 558.002, Florida
1563 Statutes, is amended to read:
1564 558.002 Definitions.—As used in this chapter, the term:
1565 (2) "Association" has the same meaning as in s. 718.103,
1566 s. 719.103(2), s. 720.301(10) s. 720.301(9), or s. 723.075.
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1567 Section 22. Subsection (6) of section 617.0601, Florida
1568 Statutes, is amended to read:
1569 617.0601 Members, generally.—
1570 (6) Subsections (1), (2), (3), and (4) do not apply to a
1571 corporation that is an association as defined in s. 720.301(10)
1572 s. 720.301.
1573 Section 23. Subsection (6) of section 617.0701, Florida
1574 Statutes, is amended to read:
1575 617.0701 Meetings of members, generally; failure to hold
1576 annual meeting; special meeting; consent to corporate actions
1577 without meetings; waiver of notice of meetings.—
1578 (6) Subsections (1) and (3) do not apply to any
1579 corporation that is an association as defined in s. 720.301(10)
1580 s. 720.301; a corporation regulated by chapter 718, chapter 719,
1581 chapter 720, chapter 721, or chapter 723; or a corporation where
1582 membership in such corporation is required pursuant to a
1583 document recorded in the county property records.
1584 Section 24. Subsection (7) of section 617.0721, Florida
1585 Statutes, is amended to read:
1586 617.0721 Voting by members.—
1587 (7) Subsections (1), (5), and (6) do not apply to a
1588 corporation that is an association, as defined in s. 720.301(10)
1589 s. 720.301, or a corporation regulated by chapter 718 or chapter
1590 719.

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Amendment No.

1591 Section 25. Section 617.0725, Florida Statutes, is amended
1592 to read:
1593 617.0725 Quorum.—An amendment to the articles of
1594 incorporation or the bylaws which adds, changes, or deletes a
1595 greater or lesser quorum or voting requirement must meet the
1596 same quorum or voting requirement and be adopted by the same
1597 vote and voting groups required to take action under the quorum
1598 and voting requirements then in effect or proposed to be
1599 adopted, whichever is greater. This section does not apply to
1600 any corporation that is an association, as defined in s.
1601 720.301(10) s. 720.301(9), or any corporation regulated under
1602 chapter 718 or chapter 719.
1603 Section 26. Subsection (3) of section 617.0808, Florida
1604 Statutes, is amended to read:
1605 617.0808 Removal of directors.—
1606 (3) This section does not apply to any corporation that is
1607 an association, as defined in s. 720.301(10) s. 720.301, or a
1608 corporation regulated under chapter 718 or chapter 719.
1609 Section 27. Section 617.1606, Florida Statutes, is amended
1610 to read:
1611 617.1606 Access to records.—Sections 617.1601-617.1605 do
1612 not apply to a corporation that is an association, as defined in
1613 s. 720.301(10) s. 720.301, or a corporation regulated under
1614 chapter 718 or chapter 719.

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Amendment No.

1615 Section 28. Paragraph (b) of subsection (1) of section
1616 718.116, Florida Statutes, is amended to read:
1617 718.116 Assessments; liability; lien and priority;
1618 interest; collection.—
1619 (1)
1620 (b)1. The liability of a first mortgagee or its successor
1621 or assignees who acquire title to a unit by foreclosure or by
1622 deed in lieu of foreclosure for the unpaid assessments that
1623 became due before the mortgagee's acquisition of title is
1624 limited to the lesser of:
1625 a. The unit's unpaid common expenses and regular periodic
1626 assessments which accrued or came due during the 12 months
1627 immediately preceding the acquisition of title and for which
1628 payment in full has not been received by the association; or
1629 b. One percent of the original mortgage debt. The
1630 provisions of this paragraph apply only if the first mortgagee
1631 joined the association as a defendant in the foreclosure action.
1632 Joinder of the association is not required if, on the date the
1633 complaint is filed, the association was dissolved or did not
1634 maintain an office or agent for service of process at a location
1635 which was known to or reasonably discoverable by the mortgagee.
1636 2. An association, or its successor or assignee, that
1637 acquires title to a unit through the foreclosure of its lien for
1638 assessments is not liable for any unpaid assessments, late fees,
1639 interest, or reasonable attorney's fees and costs that came due
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Amendment No.

1640 before the association's acquisition of title in favor of any
1641 other association, as defined in s. 718.103 or s. 720.301(10) s.
1642 720.301(9), which holds a superior lien interest on the unit.
1643 This subparagraph is intended to clarify existing law.
1644 Section 29. Paragraph (d) of subsection (2) of section
1645 720.3085, Florida Statutes, is amended to read:
1646 720.3085 Payment for assessments; lien claims.—
1647 (2)
1648 (d) An association, or its successor or assignee, that
1649 acquires title to a parcel through the foreclosure of its lien
1650 for assessments is not liable for any unpaid assessments, late
1651 fees, interest, or reasonable attorney's fees and costs that
1652 came due before the association's acquisition of title in favor
1653 of any other association, as defined in s. 718.103 or s.
1654 720.301(10) s. 720.301(9), which holds a superior lien interest
1655 on the parcel. This paragraph is intended to clarify existing
1656 law.
1657 Section 30. This act shall take effect July 1, 2026.
1658
1659 -----------------------------------------------------
1660 T I T L E A M E N D M E N T
1661 Remove everything before the enacting clause and insert:
1662 An act relating to community associations; creating s.
1663 712.13, F.S.; providing legislative findings and
1664 intent; providing definitions; providing that the
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1665 recorded governing documents of a dissolved
1666 homeowners' association are deemed terminated and
1667 unenforceable; requiring the clerk of the circuit
1668 court to indicate in the county records that a
1669 dissolved association's governing documents are
1670 terminated and inactive; requiring certain exclusive
1671 easements to revert to the servient estate upon
1672 dissolution of a homeowners' association under certain
1673 circumstances; providing for the extinguishment of
1674 such easement; prohibiting an easement held by a
1675 dissolved association from becoming a public right-of-
1676 way, trail, or access route unless the easement is
1677 separately recorded for public use; providing
1678 construction; providing retroactive applicability;
1679 amending s. 718.103, F.S.; defining the term
1680 "habitable"; revising the definition of the term
1681 "video conference"; amending s. 718.104, F.S.;
1682 requiring condominium associations to include a
1683 specified statement in the governing documents or to
1684 hold a meeting by a date certain to vote to amend the
1685 governing documents to include such statement;
1686 requiring a vote held at such meeting to be approved
1687 by a certain amount of the voting interests; amending
1688 s. 718.111, F.S.; requiring a condominium association
1689 to provide copies of certain records or otherwise make
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1690 them available for inspection and copying within a
1691 specified timeframe if the association receives a
1692 subpoena or written request from a law enforcement
1693 agency or prosecuting agency; requiring the
1694 association to assist law enforcement or prosecuting
1695 agencies in their investigations; providing criminal
1696 penalties; amending s. 718.112, F.S.; revising a
1697 requirement that a developer, before turning over
1698 control of a condominium association to unit owners,
1699 have a turnover inspection report for all buildings on
1700 the condominium property, rather than only for
1701 buildings that are three stories or higher; revising
1702 the criteria for certain associations requiring a
1703 structural integrity reserve study; correcting a
1704 cross-reference; amending s. 718.1255, F.S.; removing
1705 presuit mediation requirements; amending s. 718.128,
1706 F.S.; revising how associations that have not adopted
1707 electronic voting are required to receive
1708 electronically transmitted ballots; revising the
1709 methods a unit owner may use to transmit his or her
1710 ballot; conforming provisions to changes made by the
1711 act; amending s. 719.103, F.S.; defining the term
1712 “habitable”; amending s. 719.106, F..S; revising a
1713 requirement that a developer, before turning over
1714 control of a cooperative association to unit owners,
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1715 have a turnover inspection report for all buildings on
1716 the cooperative property, rather than only for
1717 buildings that are three stories or higher; revising
1718 the criteria for certain associations requiring a
1719 structural integrity reserve study; correcting a
1720 cross-reference; amending s. 720.301, F.S.; defining
1721 the term "financial statements"; amending s. 720.302,
1722 F.S.; conforming a provision to changes made by the
1723 act; amending s. 720.303, F.S.; requiring homeowners'
1724 associations to include a specified statement in the
1725 governing documents or to hold a meeting by a date
1726 certain to vote to amend the governing documents to
1727 include such statement; requiring a vote held at such
1728 meeting to be approved by a certain amount of the
1729 voting interests; revising a requirement for a
1730 homeowners’ association to provide copies of certain
1731 records within specified timeframe if it receives a
1732 subpoena or written request for such records from a
1733 law enforcement agency or prosecuting agency;
1734 providing criminal penalties; providing that
1735 directors, officers, and committee members of a
1736 homeowners' association owe a duty of loyalty to such
1737 association and its members; requiring a director, an
1738 officer, or a committee member who has a conflict of
1739 interest to disclose to the board such conflict in
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1740 writing; prohibiting such director, officer, or member
1741 from participating in any discussion or vote on such
1742 matter; authorizing an association to void a
1743 transaction involving a conflict of interest;
1744 providing an exception; providing a rebuttable
1745 presumption; providing construction; amending s.
1746 720.306, F.S.; conforming a cross-reference; amending
1747 s. 720.311, F.S.; removing presuit mediation
1748 requirements; requiring that specified arbitrators
1749 conduct arbitration proceedings; creating s. 720.319,
1750 F.S.; providing a short title; providing legislative
1751 findings; authorizing a homeowners' association to be
1752 terminated; providing requirements for the termination
1753 of a homeowners' association; providing conditions for
1754 a plan of termination; requiring an approved plan of
1755 termination be submitted to a community association
1756 court program and recorded in the public records of
1757 each county in which the association is located;
1758 providing duties and responsibilities of a termination
1759 trustee; authorizing a member to file a petition with
1760 a community association court program under certain
1761 circumstances; authorizing a community association
1762 court program to take certain actions; providing
1763 responsibilities of the board after approval of a plan
1764 of termination; providing for the distribution of
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1765 assets and paying of lawful debts after an association
1766 is terminated; specifying unlawful actions by an
1767 association or its officers or directors; providing
1768 penalties; creating s. 720.32, F.S.; providing
1769 legislative intent; authorizing circuit courts to
1770 create and administer a community association court
1771 program; providing duties of the chief judge;
1772 providing the jurisdiction of the community
1773 association court program; authorizing the community
1774 association court program to take certain actions;
1775 requiring the chief judge of certain judicial circuits
1776 to submit to the Legislature a specified report
1777 annually by a specified date; providing duties of the
1778 Office of the State Courts Administrator; providing
1779 exceptions; providing that certain costs associated
1780 with the community association court program be funded
1781 through specific appropriations in the General
1782 Appropriations Act; requiring certain funds that
1783 remain unencumbered or undisbursed by specified dates
1784 to revert to the Division of Florida Condominiums,
1785 Timeshares, and Mobile Homes Trust Fund; amending s.
1786 26.031, F.S.; increasing the number of circuit judges
1787 in certain judicial circuits; specifying that the
1788 additional circuit court judges are for the community
1789 association court program; amending s. 34.01, F.S.;
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1790 conforming a provision to changes made by the act;
1791 amending ss. 336.125, 558.002, 617.0601, 617.0701,
1792 617.0721, 617.0725, 617.0808, 617.1606, 718.116, and
1793 720.3085, F.S.; conforming cross-references; providing
1794 an effective date.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (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: Commerce Committee
2 Representative Sirois offered the following:
3
4 Amendment to Amendment (141027) by Representative Porras
5 (with title amendment)
6 Remove lines 888-955 of the amendment and insert:
7 roof or structural components of a building, or other
8 improvements for which the association is responsible;
9 mechanical, electrical, or plumbing elements serving an
10 improvement or building for which the association is
11 responsible; representations of the developer pertaining to any
12 existing or proposed commonly used facility; and protest of ad
13 valorem taxes on commonly used facilities. The association may
14 defend actions in eminent domain or bring inverse condemnation
15 actions. Before commencing litigation against any party in the
16 name of the association involving amounts in controversy in
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (2026)
Amendment No.

17 excess of $100,000, the association must obtain the affirmative
18 approval of a majority of the voting interests at a meeting of
19 the membership at which a quorum has been attained. This
20 paragraph subsection does not limit any statutory or common-law
21 right of any individual member or class of members to bring any
22 action without participation by the association.
23 (e) A member does not have authority to act for the
24 association by virtue of being a member. An association may have
25 more than one class of members and may issue membership
26 certificates.
27 (f) An association of 15 or fewer parcel owners may
28 enforce only the requirements of those deed restrictions
29 established prior to the purchase of each parcel upon an
30 affected parcel owner or owners.
31 (5) INSPECTION AND COPYING OF RECORDS.—
32 (i)1. If an association receives a subpoena or written
33 request for records from a law enforcement agency or prosecuting
34 agency as defined in 112.531, the association must provide a
35 copy of such records or otherwise make the records available for
36 inspection and copying to a law enforcement agency or
37 prosecuting agency within 5 business days after receipt of the
38 subpoena or written request, unless otherwise specified by the
39 law enforcement agency, prosecuting agency, or subpoena or
40 written request. An association must assist a law enforcement
41 agency in its investigation to the extent permissible by law.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (2026)
Amendment No.

42 2. A director or member of the board or association or a
43 community association manager who willfully and knowingly fails
44 to provide a copy of records to a law enforcement agency or
45 prosecuting agency, or otherwise fails to make the records
46 available for inspection and copying, as required by
47 subparagraph 1. commits a misdemeanor of the second degree,
48 punishable as provided in s. 775.082 or s. 775.083.
49 (11) CONFLICTS OF INTEREST.—
50 (a) A director, an officer, or a committee member of an
51 association owes a duty of loyalty to the association and its
52 members.
53 (b) A conflict of interest exists when a director, an
54 officer, or a committee member has a direct or an indirect
55 financial interest in a transaction, contract, or decision under
56 consideration by the association.
57 (c) The director, officer, or committee member with a
58 conflict of interest must disclose the nature and extent of the
59 conflict in writing to the board before any discussion or vote
60 occurs on the matter.
61 (d) After disclosure of the conflict of interest, the
62 conflicted director, officer, or committee member may not
63 participate in any discussion or vote on the matter.
64 (e) A transaction involving a conflict of interest is
65 voidable by the association unless the transaction was approved
66 by a majority of the voting interests of the association after
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (2026)
Amendment No.

67 full disclosure by the conflicted director, officer, or
68 committee member has occurred.
69 (f) Compensating or contracting with a director, an
70 officer, or a committee member of the association, or an
71 immediate family member thereof, creates a rebuttable
72 presumption that a conflict of interest exists.
73 (g) This subsection may not be waived or limited by the
74 governing documents of the association.
75 Section 13. Paragraph (b) of subsection (1) of section
76 720.3035, Florida Statutes, is amended to read:
77 720.3035 Architectural control covenants; parcel owner
78 improvements; rights and privileges.—
79 (1)
80 (b) An association or any architectural, construction
81 improvement, or other such similar committee of an association
82 may not enforce or adopt a covenant, rule, or guideline that:
83 1. Limits or places requirements on the interior of a
84 structure that is not visible from the parcel's frontage or an
85 adjacent parcel, an adjacent common area, or a community golf
86 course.
87 2. Requires the review and approval of plans and
88 specifications for a central air-conditioning, refrigeration,
89 heating, or ventilating system by the association or any
90 architectural, construction improvement, or other such similar
91 committee of an association, if such system is not visible from
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (2026)
Amendment No.

92 the parcel's frontage, an adjacent parcel, an adjacent common
93 area, or a community golf course and is substantially similar to
94 a system that is approved or recommended by the association or a
95 committee thereof.
96 3. Requires that a specific type of material be used on
97 the building or rebuilding of a roof, provided the built or
98 rebuilt roof appears to be substantially identical in shape and
99 color with the roofing requirements created by the association
100 or any architectural, construction improvement, or other such
101 similar committee of the association, and that such roofing
102 materials adhere to the roof systems recognized by the Florida
103 Building Code which meet ASCE 7-22 standards pursuant to
104 paragraph (6)(c).
105 Section 14. Paragraph (g) is added to subsection (3) of
106 section 720.3075, Florida Statutes, to read:
107 720.3075 Prohibited clauses in association documents.—
108 (3) Homeowners' association documents, including
109 declarations of covenants, articles of incorporation, or bylaws,
110 may not preclude:
111 (g) A property owner from using any type of building
112 material to build or rebuild his or her roof, provided the built
113 or rebuilt roof appears to be substantially identical in shape
114 and color with the roofing requirements created by the
115 association or any architectural, construction improvement, or
116 other such similar committee of the association, and that such
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (2026)
Amendment No.

117 roofing materials adhere to the roof systems recognized by the
118 Florida Building Code which meet ASCE 7-22 standards pursuant to
119 s. 720.3035(6)(c).
120 Section 15. For the purpose of incorporating the amendment
121 made by this act to section 720.3035, Florida Statutes, in a
122 reference thereto, Subsection (9) of section 617.0825, Florida
123 Statutes, is reenacted to read:
124 617.0825 Board committees and advisory committees.—
125 (9) This section does not apply to a committee established
126 under chapter 718, chapter 719, or chapter 720 to perform the
127 functions set forth in s. 718.303(3), s. 719.303(3), s.
128 720.3035(1), s. 720.305(2), or s. 720.405, respectively.
129
130 -----------------------------------------------------
131 T I T L E A M E N D M E N T
132 Remove line 1746 of the amendment and insert:
133 s. 720.3035, F.S.; revising the prohibition on the
134 adoption of certain covenants, rules, or guidelines by
135 a homeowners' association or a specified committee of
136 an association to include a prohibition on requiring
137 specific types of materials for the building or
138 rebuilding of a roof if the built or rebuilt roof
139 meets certain criteria and standards; amending s.
140 720.3075, F.S.; revising the prohibited clauses in
141 homeowners' association documents to include a
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/CS/HB 657 (2026)
Amendment No.

142 requirement that a property owner may not be precluded
143 from using any type of building material to build or
144 rebuild his or her roof if the built or rebuilt roof
145 meets certain criteria and standards; reenacting s.
146 617.0825(9), F.S., relating to board committees and
147 advisory committees, to incorporate the amendment made
148 to s. 720.3035, F.S., in a reference thereto; amending
149 s. 720.306, F.S.; conforming a cross-reference;
150 amending

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CS/HB 1001
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1001 COMPANION BILL: CS/SB 1134 (Yarborough)
TITLE: Official Actions of Local Governments LINKED BILLS: None
SPONSOR(S): Black RELATED BILLS: None
Committee References
Intergovernmental Affairs Civil Justice & Claims Commerce
10 Y, 5 N  12 Y, 4 N, As CS 

SUMMARY
Effect of the Bill:
The bill prohibits counties and municipalities from:
• Funding, promoting, or taking any official action, such as the adoption or enforcement of ordinances,
resolutions, rules, regulations, programs, and policies, relating to diversity, equity, and inclusion after June
30, 2027.
• Spending any funds, regardless of source, for diversity, equity, and inclusion offices and officers.

However, the bill allows a county or municipality to authorize or permit, in a content-neutral manner, civic and
community events so long as certain requirements are met. The bill requires a potential recipient of a county or
municipal contract or grant to certify that he or she will not use county or municipal funds for diversity, equity, and
inclusion materials.

The bill provides that a county or municipal official exercising his or her official authority on behalf of the
government who violates the bill’s provisions commits misfeasance or malfeasance in office if such conduct was
willful. The bill authorizes a resident of the county or municipality to bring action in circuit court for violations of
the bill. The bill does not prohibit a county or municipality from recognizing state and federal holidays or
monuments, or from complying with state and federal laws or regulations.

Fiscal or Economic Impact:
None.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill prohibits counties and municipalities from funding, promoting, or taking any official action relating to
diversity, equity, and inclusion (DEI). Prohibited actions include the adoption, promotion, or enforcement of
ordinances, resolutions, rules, regulations, programs, and policies relating to DEI. The bill voids any such existing
ordinances, resolutions, rules, regulations, programs, or policies. The bill prohibits counties and municipalities
from expending funds, regardless of the funding source, for DEI offices and officers. (Sections 1 and 2).

The bill defines “diversity, equity, and inclusion” as:
• The manipulation of or influence over the composition of employees with reference to race, color, sex,
ethnicity, gender identity, or sexual orientation for purposes other than ensuring that hiring is conducted in
accordance with state and federal antidiscrimination laws;
• The promotion of or act of providing preferential treatment or special benefits to a person or group based
on that person's or group's race, color, sex, ethnicity, gender identity, or sexual orientation; or
STORAGE NAME: h1001d.COM
DATE: 2/24/2026
1
CS/HB 1001
• The promotion or adoption of training, programming, or activities designed or implemented with reference
to race, color, sex, ethnicity, gender identity, or sexual orientation. (Sections 1 and 2)

The term does not include the use of equal opportunity or equal employment opportunity materials designed to
inform a person about the prohibition against discrimination based on protected status under state or federal law.
(Sections 1 and 2)

The bill permits a county or municipality to authorize or permit, in a content-neutral manner, civic and community
events so long as:
• No public funds are used to pay for the event;
• No county or municipal employee is required to promote or attend the event; and
• The event does not promote terrorism, racism, or antisemitism. (Sections 1 and 2).

The bill allows a county or municipality to continue to fund, promote, or take official action for civic or community
events related to DEI through June 30, 2027. However, effective July 1, 2027, a county or municipality is prohibited
from funding, promoting, or taking official actions to such events unless the conduct is otherwise permitted by the
bill’s provisions. (Sections 1 and 2).

County commissioners, members of the governing body of a municipality, and other county and municipal officials
acting in official capacities who violate the bill’s provisions commit misfeasance or malfeasance in office, but only
if:
• Such conduct is willful; and
• The official was exercising his or her official authority pursuant to law on behalf of the government.

County and municipal residents may bring an action in circuit court against counties and municipalities who
violate the bill’s provisions, and circuit courts may award declaratory and injunctive relief, damages, and costs.
(Sections 1 and 2).

The bill’s provisions do not prohibit counties and municipalities from recognizing or promoting the following
holidays, observances and memorials:
• Holidays designated by federal law;1
• Holidays and special observances designated by Florida law; 2
• Patriotic and national observances recognized by federal law;3 and
• Individuals and groups recognized and honored by monuments and memorials authorized by chapter 265,
F.S., or national monuments designated by acts of Congress, or recognizing the events forming the basis for
such monuments or memorials. 4 (Sections 1 and 2).

The bill does not prohibit a county or municipality from complying with state and federal laws or regulations. The
bill does not prohibit the use of equal opportunity or equal employment opportunity materials designed to inform
a person about the prohibition against discrimination based on protected status under state or federal law. The bill
specifies that the provisions in the bill may not be construed to conflict with state and federal laws that:
• Protect the right of a male and female to restrooms and changing facilities corresponding to his or her
biological sex; 5
• Ensure that a victim of domestic violence and his or her dependents have access to emergency shelters; 6

1 See 5 U.S.C. s. 6103.
2 See Ch. 683, F.S.
3 See 36 U.S.C. ss. 101-148.
4 See Ch. 265, F.S.
5 See s. 553.865, F.S.
6 See Part XII of Ch. 39, F.S.

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CS/HB 1001
• Prohibit discrimination based on biological sex in educational programs, sports, activities, and
employment;7
• Ensure males and females have access to public health services corresponding to their biological sex; 8
• Recognize the inherent biological differences between a male and female for the purpose of ensuring his or
her health, safety, and welfare; and
• Ensure that an individual has access to public health services corresponding to his or her race or ethnicity.
(Sections 1 and 2).

The bill does not apply to the actions of a body composed of nonelected volunteers, or to basic administrative
support provided to such a body, unless the support is provided by a county or municipal employee whose sole
function is to provide such support. (Sections 1 and 2).

The bill requires potential recipients of county or municipal contracts or grants to certify that they do not and will
not use county or municipal funds to require their employees, contractors, volunteers, vendors, or agents to
ascribe to, study, or be instructed using DEI materials. (Section 3).

The effective date of the bill is January 1, 2027. (Section 4).

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Diversity, Equity and Inclusion
Title VII of the Civil Rights Act of 1964 (Title VII) prohibits employment discrimination based on protected
characteristics such as race and sex. 9 Title VII bars discrimination against applicants or employees in hiring, firing,
compensation, or any term, condition, or privilege of employment. 10 Title VII also prohibits employers from
limiting, segregating, or classifying employees or applicants based on race, sex, or other protected characteristics
in a way that affects their status or deprives them of employment opportunities.

Under Title VII, Diversity, Equity and Inclusion (DEI) initiatives, policies, programs, or practices may be unlawful if
they involve an employer taking an employment action motivated by an employee’s or applicant’s race, sex, or
another protected characteristic. 11 For state and local government employers, the U.S. Equal Employment
Opportunity Commission is responsible for investigating charges of discrimination against such employers.

Federal executive orders issued in January 2025 directed each federal agency, department, or commission head to
terminate all DEI offices and positions and all DEI performance requirements for employees, contractors, or
grantees. 12 These orders revoked numerous DEI-related executive orders issued by previous presidential
administrations and required executive agencies to terminate all discriminatory and illegal preferences, mandates,
policies, programs, activities, guidance, regulations, enforcement actions, consent orders, and requirements.

Florida Civil Rights Act
The Florida Civil Rights Act (FCRA) of 1992 protects persons from discrimination based on race, color, religion, sex,
pregnancy, national origin, age, handicap, or marital status. 13 The FCRA establishes the Florida Commission on

7 See s. 1000.05, F.S.
8 See Ch. 381, F.S.
9 U.S. Equal Employment Opportunity Commission (EEOC), What You Should Know About DEI-Related Discrimination at Work

(last visited Feb. 2, 2026).
10 42 U.S.C. s. 2000e- 2(a)(1).
11 EEOC supra note 9.
12 Executive Order 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing (Jan. 20, 2025), and

Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). See also
Congressional Research Service, Recent Executive Actions on Diversity, Equity, and Inclusion (DEI), (Jan. 29, 2025).
13 S. 760.01, F.S.

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CS/HB 1001
Human Relations (Commission) within the Department of Management Services. 14 The Commission is empowered
to receive, initiate, investigate, conciliate, hold hearings, and act upon complaints alleging discriminatory
practices. 15 Additionally, the Attorney General may initiate a civil action for damages, injunctive relief, civil
penalties of up to $10,000 per violation, and other appropriate relief. 16 In 2019, Governor DeSantis reaffirmed the
policy of non-discrimination in government employment and declared it the policy of his administration to prohibit
discrimination in employment based on age, sex, race, color, religion, national origin, marital status, or disability. 17

Municipal and County Ordinances
An ordinance is an official legislative action of a governing body, which action is a regulation of a general and
permanent nature and enforceable as a local law. 18 A resolution is an expression of a governing body concerning
matters of administration, an expression of a temporary character, or a provision for the disposition of a particular
item. 19

Counties have the power to adopt ordinances and resolutions necessary for the exercise of its powers and to
prescribe fines and penalties for the violation of ordinances in accordance with law. 20 They also have the power to
perform any other acts not inconsistent with law, which acts are in the common interest of the people of the
county, and exercise all powers and privileges not specifically prohibited by law. 21 Municipalities have the
governmental, corporate, and proprietary powers to conduct municipal government, perform municipal functions,
and render municipal services, and may exercise any power for municipal purposes, except when expressly
prohibited by law. 22

Misfeasance or Malfeasance in Office
Misfeasance is the improper performance of a lawful act, resulting in harm or injury to another person or entity. 23
Misfeasance typically occurs when an individual or a public official undertakes a duty or responsibility but fails to
carry it out with proper care, skill, or diligence. While the act itself may be lawful, the negligence or improper
execution of the act leads to harmful consequences. Malfeasance is an act that is illegal and causes physical or
monetary harm to someone else. 24 Malfeasance is intentional conduct that is wrongful or unlawful, especially by
officials or public employees.

It is the policy of the state that state and local public officers and employees are agents of the people and hold their
positions for the benefit of the public. 25 They are bound to uphold the Constitution of the United States and the
State Constitution and to perform efficiently and faithfully their duties under the laws of the federal, state, and local
governments. As such, any violation of the code of ethics for public officers and employees provided in law
constitutes malfeasance, misfeasance, or neglect of duty in office. 26

The Governor is authorized to suspend any county officer from office for malfeasance, misfeasance, neglect of duty,
drunkenness, incompetence, permanent inability to perform official duties, or commission of a felony. 27 The
Governor may temporarily appoint someone to fill the office during the suspension and may choose to reinstate

14 Ss. 760.03 and 760.04, F.S.
15 S. 760.06(5), F.S.
16 S. 760.021(1), F.S.
17 State of Florida, Office of the Governor, Executive Order No. 19-10, Jan. 8, 2019 (last visited Feb. 2, 2026).
18 See s. 166.041(a), F.S.
19 See s. 166.041(b), F.S.
20 S. 125.01(1)(t), F.S.
21 S. 125.01(1)(w), F.S.
22 S. 166.021(1), F.S.
23 Cornell Law School Legal Information Institute, Misfeasance (last visited Feb. 2, 2026).
24 Cornell Law School Legal Information Institute, Malfeasance (last visited Feb. 2, 2026).
25 S. 112.311(6), F.S.
26 S. 112.317(4), F.S.
27 Art. IV, s. 7(a), Fla. Const.

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CS/HB 1001
the suspended officer. The Senate has the authority to remove from office or reinstate the suspended officer in
proceedings prescribed by law and may convene a special session for such purpose. 28

The State Constitution authorizes the Governor to suspend municipal officers indicted for crime, unless such power
is vested in law or a municipal charter. 29 The Governor may also suspend any elected or appointed municipal
official from office for malfeasance, misfeasance, neglect of duty, habitual drunkenness, incompetence, or
permanent inability to perform official duties. 30 The Governor may temporarily fill the office during the
suspension. 31 If the municipal officer is convicted of any of the charges contained in the indictment or information
by reason of which he or she was suspended, the Governor must remove the official from office. 32 If the municipal
official is acquitted, found not guilty, or otherwise cleared of the charges, the Governor must revoke the
suspension. 33

Declaratory and Injunctive Relief
Declaratory relief refers to a court’s declaratory judgment stating the rights of parties without ordering any
specific action or listing awards for damages. 34 When a party is requesting a declaratory judgment, the party is
seeking an official declaration regarding the status of the controversy in issue.

Injunctive relief, also known as an injunction, is a court-ordered remedy which restricts a party from committing
specific actions or requires a party to complete specific actions. 35 The purpose of injunctive relief is to prevent
future wrong or harm by one party to another and can be issued before or after a final judgment.

Public Holidays, Observances, and Memorials
Federal public holidays include the following:
• New Year's Day, January 1.
• Birthday of Martin Luther King, Jr., the third Monday in January.
• Washington's Birthday, the third Monday in February.
• Memorial Day, the last Monday in May.
• Juneteenth National Independence Day, June 19.
• Independence Day, July 4.
• Labor Day, the first Monday in September.
• Columbus Day, the second Monday in October.
• Veterans Day, November 11.
• Thanksgiving Day, the fourth Thursday in November.
• Christmas Day, December 25. 36

State public holidays include the following:
• Sunday, the first day of each week.
• New Year’s Day, January 1.
• Birthday of Martin Luther King, Jr., January 15.
• Birthday of Robert E. Lee, January 19.
• Lincoln’s Birthday, February 12.
• Susan B. Anthony’s Birthday, February 15.
• Washington’s Birthday, the third Monday in February.

28 Art. IV, s. 7(b), Fla. Const.
29 Art. IV, s. 7(c), Fla. Const.
30 S. 112.51(1), F.S.
31 S. 112.51(3), F.S.
32 S. 112.51(5), F.S.
33 S. 112.51(6), F.S.
34 Cornell Law School Legal Information Institute, Declaratory Relief (last visited Feb. 2, 2026).
35 Cornell Law School Legal Information Institute, Injunctive Relief (last visited Feb. 2, 2026).
36 5 U.S.C. s. 6103.

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CS/HB 1001
• Tuskegee Airmen Commemoration Day, the fourth Thursday in March.
• Good Friday.
• Pascua Florida Day, April 2.
• Confederate Memorial Day, April 26.
• Memorial Day, the last Monday in May.
• Birthday of Jefferson Davis, June 3.
• Flag Day, June 14.
• Independence Day, July 4.
• Labor Day, the first Monday in September.
• Columbus Day and Farmers’ Day, the second Monday in October.
• Veterans’ Day, November 11.
• General Election Day.
• Thanksgiving Day, the fourth Thursday in November.
• Christmas Day, December 25.
• Shrove Tuesday, sometimes also known as “Mardi Gras,” in counties where carnival associations are
organized for the purpose of celebrating the same.37

The state recognizes Gasparilla Day as a legal holiday in Hillsborough County, DeSoto Day as a legal holiday in
Manatee County, and authorizes the chief judge of each judicial circuit to designate Rosh Hashanah, Yom Kippur,
and Good Friday as legal holidays for the courts within the circuit. 38

In addition to state legal holidays, state special observances include the following:
• Arbor Day.
• Pan-American Day.
• Pascua Florida Day.
• Grandparents’ and Family Caregivers’ Day.
• Law Enforcement Appreciation Day and Law Enforcement Appreciation Month.
• Law Enforcement Memorial Day.
• Parade Day, Hillsborough County.
• State observance of any national day of mourning.
• Patriots’ Day.
• I Am An American Day.
• American Founders’ Month.
• Purple Heart Day.
• Medal of Honor Day.
• Veterans Appreciation Month.
• Teacher’s Day.
• Retired Teachers’ Day.
• Parents’ and Children’s Day.
• Save the Florida Panther Day.
• Everglades Day.
• Florida Jewish History Month.
• Holocaust Remembrance Day.
• Juneteenth Day.
• Law Day and Law Week.
• Florida Missing Children’s Day.
• Citizen support organization for Florida Missing Children’s Day.
• Florida Alzheimer’s Disease Day.

37 S. 683.01, F.S.

- Ss. 683.08, 683.09. and 683.19, F.S.
38
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CS/HB 1001
• Bill of Rights Day.
• Ronald Reagan Day.
• Homeless Persons’ Memorial Day.
• Three Kings Day.
• Child Welfare Professionals Recognition Day.
• Drowsy Driving Prevention Week.
• Foster Family Appreciation Week.
• Victims of Communism Day.
• Responsible Fatherhood Month.
• Revive Awareness Day.
• Fentanyl Awareness and Education Day.
• 9/11 Heroes’ Day.
• Hot Car Death Prevention Month.
• Move Over Awareness Week. 39

The following are Patriotic and National Observances:
• American Heart Month.
• Asian/Pacific American Heritage Month.
• Cancer Control Month.
• Carl Garner Federal Lands Cleanup Day.
• Child Health Day.
• Constitution Day and Citizenship Day.
• Columbus Day.
• Constitution Week.
• Father's Day.
• Flag Day.
• Gold Star Mother's Day.
• Honor America Days.
• Law Day, U.S.A.
• Leif Erikson Day.
• Loyalty Day.
• Memorial Day.
• Mother's Day.
• National Aviation Day.
• National Day of Prayer.
• National Defense Transportation Day.
• National Disability Employment Awareness Month.
• National Flag Week.
• National Forest Products Week.
• National Freedom Day.
• National Grandparents Day.
• National Hispanic Heritage Month.
• National Korean War Veterans Armistice Day.
• National Maritime Day.
• National Pearl Harbor Remembrance Day.
• National Poison Prevention Week.
• National Safe Boating Week.
• National School Lunch Week.
• National Transportation Week.

39 Ch. 683, F.S.

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CS/HB 1001
• Pan American Aviation Day.
• Parents' Day.
• Peace Officers Memorial Day.
• Police Week.
• Save Your Vision Week.
• Steelmark Month.
• Stephen Foster Memorial Day.
• Thomas Jefferson's birthday.
• White Cane Safety Day.
• Wright Brothers Day.
• Patriot Day.
• Veterans Day.
• National Atomic Veterans Day.
• Choose Respect Day.
• U.S. Hostage and Wrongful Detainee Day. 40

State law has also established specific monuments and memorials. 41 Examples of state monuments and memorials
include the following:
• Prison of War/Missing in Action (POW-MIA) Chair of Honor Memorial.
• Florida Veterans’ Memorial Garden.
• Florida Holocaust Memorial.
• Florida Slavery Memorial.
• Arthur G. Dozier School for Boys Memorial.
• POW-MIA Vietnam Veterans Bracelet Memorial.
• Florida Space Exploration Monument.

40 36 U.S.C. ss. 101-148.
41 Ch. 265, F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
8
CS/HB 1001
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Intergovernmental Affairs 10 Y, 5 N 2/5/2026 Darden Hilliard
Subcommittee
Civil Justice & Claims 12 Y, 4 N, As CS 2/11/2026 Jones Mathews
Subcommittee
THE CHANGES ADOPTED BY THE • Provided a delayed implementation of some of the provisions of the bill
COMMITTEE: by allowing a county or municipality to fund, promote, or take official
action for civic or community events relating to DEI through June 30,
2027.
• Provided that the bill does not prohibit a county or municipality from
recognizing or honoring those individuals or groups recognized and
honored by a national monument that has been designated by an act of
Congress.
• Authorized a county or municipality to authorize or permit, in a
content-neutral manner, civic and community events so long as certain
requirements are met.
• Provided that the bill shall not be read to conflict with state and federal
laws ensuring an individual has access to public health services
corresponding to his or her race or ethnicity.
• Clarified that an official is subject to committing misfeasance or
malfeasance only if the conduct is willful and the official was exercising
his or her official authority on behalf of the government.
Commerce Committee Hamon Fletcher

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
9
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 1001 2026

1 A bill to be entitled
2 An act relating to official actions of local
3 governments; creating ss. 125.595 and 166.04971, F.S.;
4 providing definitions; prohibiting counties and
5 municipalities, respectively, from funding or
6 promoting or taking official action relating to
7 diversity, equity, and inclusion; providing that
8 certain ordinances, resolutions, rules, regulations,
9 programs, and policies are void; providing an
10 exception; prohibiting counties and municipalities,
11 respectively, from expending funds for diversity,
12 equity, and inclusion offices or for diversity,
13 equity, and inclusion officers; providing that a
14 county commissioner, a member of the governing body of
15 a municipality, or any other county or municipal
16 official who, while exercising his or her official
17 authority, willfully violates certain provisions
18 commits misfeasance or malfeasance in office;
19 authorizing a cause of action against counties and
20 municipalities, respectively; authorizing a court to
21 enter a judgment awarding certain relief, damages, and
22 costs; providing construction and applicability;
23 creating s. 287.139, F.S.; requiring potential
24 recipients of county or municipal contracts or grants
25 to make a certain certification to the county or

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26 municipality before being awarded such contract or
27 grant; providing an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31 Section 1. Section 125.595, Florida Statutes, is created
32 to read:
33 125.595 Prohibition of official actions of counties
34 relating to diversity, equity, and inclusion; penalty; remedy.—
35 (1) For purposes of this section, the term:
36 (a) "Diversity, equity, and inclusion" means any effort
37 to:
38 1. Manipulate or otherwise influence the composition of
39 employees with reference to race, color, sex, ethnicity, gender
40 identity, or sexual orientation other than to ensure that hiring
41 is conducted in accordance with state and federal
42 antidiscrimination laws;
43 2. Promote or provide preferential treatment or special
44 benefits to a person or group based on that person's or group's
45 race, color, sex, ethnicity, gender identity, or sexual
46 orientation; or
47 3. Promote or adopt training, programming, or activities
48 designed or implemented with reference to race, color, sex,
49 ethnicity, gender identity, or sexual orientation.
50

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51 The term does not include the use of equal opportunity or equal
52 employment opportunity materials designed to inform a person
53 about the prohibition against discrimination based on protected
54 status under state or federal law.
55 (b) "Diversity, equity, and inclusion office" means any
56 office, division, department, agency, center, or other unit of a
57 county which coordinates, creates, develops, designs,
58 implements, organizes, plans, or promotes policies, programming,
59 training, practices, meetings, activities, procedures, or
60 similar actions relating to diversity, equity, and inclusion.
61 (c) "Diversity, equity, and inclusion officer" means a
62 person who is a full-time or part-time employee of, or an
63 independent contractor contracted by, a county whose duties
64 include coordinating, creating, developing, designing,
65 implementing, organizing, planning, or promoting policies,
66 programming, training, practices, meetings, activities,
67 procedures, or similar actions relating to diversity, equity,
68 and inclusion.
69 (2)(a) Subject to paragraph (b), a county may not fund or
70 promote, directly or indirectly, or take any official action,
71 including, but not limited to, the adoption or enforcement of
72 ordinances, resolutions, rules, regulations, programs, or
73 policies, relating to diversity, equity, and inclusion. Any such
74 existing ordinances, resolutions, rules, regulations, programs,
75 or policies are void.

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76 (b)1. Notwithstanding any other provision of this section,
77 a county may continue to fund, promote, or take any official
78 action for civic or community events relating to diversity,
79 equity, and inclusion through June 30, 2027.
80 2. Effective July 1, 2027, a county may not fund, promote,
81 or take any official action for civic or community events
82 relating to diversity, equity, and inclusion unless such action
83 is otherwise allowed under subsection (6).
84 (3) A county may not expend any funds, regardless of
85 source, to establish, sustain, support, or staff a diversity,
86 equity, and inclusion office or to employ, contract with, or
87 otherwise engage a person to serve as a diversity, equity, and
88 inclusion officer.
89 (4) A county commissioner or other county official who,
90 while exercising his or her official authority under law on
91 behalf of the county, willfully violates this section commits
92 misfeasance or malfeasance in office.
93 (5) An action in circuit court may be brought by a
94 resident of the county against a county that violates this
95 section. The court may enter a judgment awarding declaratory and
96 injunctive relief, damages, and costs.
97 (6) This section does not prohibit a county from:
98 (a) Taking any official action required for compliance
99 with state or federal laws or regulations.
100 (b) Recognizing or promoting holidays designated by

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101 federal law, including those designated in 5 U.S.C. s. 6103.
102 (c) Recognizing or promoting holidays and special
103 observances designated by state law, including those designated
104 in chapter 683.
105 (d) Recognizing or promoting patriotic and national
106 observances recognized by federal law, including those
107 designated in 36 U.S.C. ss. 101-148.
108 (e) Recognizing or honoring the persons and groups
109 recognized and honored by the monuments and memorials authorized
110 by chapter 265 or national monuments designated by acts of
111 Congress, or recognizing the events forming the basis for such
112 monuments or memorials.
113 (f) Using equal opportunity or equal employment
114 opportunity materials designed to inform a person about the
115 prohibition against discrimination based on protected status
116 under state or federal law.
117 (g) Authorizing or permitting, in a content-neutral
118 manner, civic or community events, provided that:
119 1. Public funds are not expended for such an event.
120 2. A county employee is not required to promote or attend
121 such an event.
122 3. Such an event does not promote terrorism, racism, or
123 antisemitism.
124 (7) This section may not be construed to conflict with:
125 (a) Section 553.865 or analogous state and federal laws

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126 protecting the right of males and females to restrooms and
127 changing facilities corresponding to their biological sex.
128 (b) Part XII of chapter 39 or analogous state and federal
129 laws ensuring that victims of domestic violence and their
130 dependents have access to emergency shelters.
131 (c) Section 1000.05 or analogous state and federal laws
132 prohibiting discrimination based on biological sex in
133 educational programs, sports, activities, and employment.
134 (d) Chapter 381 or analogous state and federal laws
135 ensuring males and females have access to public health services
136 corresponding to their biological sex.
137 (e) State and federal laws ensuring a person has access to
138 public health services corresponding to his or her race or
139 ethnicity.
140 (f) Any other state or federal laws recognizing the
141 inherent biological differences between males and females for
142 the purpose of ensuring their health, safety, and welfare.
143 (8) This section does not apply to:
144 (a) The actions of a body composed of nonelected
145 volunteers; or
146 (b) Basic administrative support provided to a body
147 composed of nonelected volunteers, unless such administrative
148 support is provided by a county employee whose sole function is
149 the provision of such administrative support.
150 Section 2. Section 166.04971, Florida Statutes, is created

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151 to read:
152 166.04971 Prohibition of official actions of
153 municipalities relating to diversity, equity, and inclusion;
154 penalty; remedy.—
155 (1) For purposes of this section, the term:
156 (a) "Diversity, equity, and inclusion" means any effort
157 to:
158 1. Manipulate or otherwise influence the composition of
159 employees with reference to race, color, sex, ethnicity, gender
160 identity, or sexual orientation other than to ensure that hiring
161 is conducted in accordance with state and federal
162 antidiscrimination laws;
163 2. Promote or provide preferential treatment or special
164 benefits to a person or group based on that person's or group's
165 race, color, sex, ethnicity, gender identity, or sexual
166 orientation; or
167 3. Promote or adopt training, programming, or activities
168 designed or implemented with reference to race, color, sex,
169 ethnicity, gender identity, or sexual orientation.
170
171 The term does not include the use of equal opportunity or equal
172 employment opportunity materials designed to inform a person
173 about the prohibition against discrimination based on protected
174 status under state or federal law.
175 (b) "Diversity, equity, and inclusion office" means any

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176 office, division, department, agency, center, or other unit of a
177 municipality which coordinates, creates, develops, designs,
178 implements, organizes, plans, or promotes policies, programming,
179 training, practices, meetings, activities, procedures, or
180 similar actions relating to diversity, equity, and inclusion.
181 (c) "Diversity, equity, and inclusion officer" means a
182 person who is a full-time or part-time employee of, or an
183 independent contractor contracted by, a municipality whose
184 duties include coordinating, creating, developing, designing,
185 implementing, organizing, planning, or promoting policies,
186 programming, training, practices, meetings, activities,
187 procedures, or similar actions relating to diversity, equity,
188 and inclusion.
189 (2)(a) Subject to paragraph (b), a municipality may not
190 fund or promote, directly or indirectly, or take any official
191 action, including, but not limited to, the adoption or
192 enforcement of ordinances, resolutions, rules, regulations,
193 programs, or policies, relating to diversity, equity, and
194 inclusion. Any such existing ordinances, resolutions, rules,
195 regulations, programs, or policies are void.
196 (b)1. Notwithstanding any other provision of this section,
197 a municipality may continue to fund, promote, or take any
198 official action for civic or community events relating to
199 diversity, equity, and inclusion through June 30, 2027.
200 2. Effective July 1, 2027, a municipality may not fund,

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201 promote, or take any official action for civic or community
202 events relating to diversity, equity, and inclusion unless such
203 action is otherwise allowed under subsection (6).
204 (3) A municipality may not expend any funds, regardless of
205 source, to establish, sustain, support, or staff a diversity,
206 equity, and inclusion office or to employ, contract with, or
207 otherwise engage a person to serve as a diversity, equity, and
208 inclusion officer.
209 (4) A member of the governing body of a municipality or
210 other municipal official who, while exercising his or her
211 official authority under law on behalf of the municipality,
212 willfully violates this section commits misfeasance or
213 malfeasance in office.
214 (5) An action in circuit court may be brought by a
215 resident of the municipality against a municipality that
216 violates this section. The court may enter a judgment awarding
217 declaratory and injunctive relief, damages, and costs.
218 (6) This section does not prohibit a municipality from:
219 (a) Taking any official action required for compliance
220 with state or federal laws or regulations.
221 (b) Recognizing or promoting holidays designated by
222 federal law, including those designated in 5 U.S.C. s. 6103.
223 (c) Recognizing or promoting holidays and special
224 observances designated by state law, including those designated
225 in chapter 683.

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226 (d) Recognizing or promoting patriotic and national
227 observances recognized by federal law, including those
228 designated in 36 U.S.C. ss. 101-148.
229 (e) Recognizing or honoring the persons and groups
230 recognized and honored by the monuments and memorials authorized
231 by chapter 265 or national monuments designated by acts of
232 Congress, or recognizing the events forming the basis for such
233 monuments or memorials.
234 (f) Using equal opportunity or equal employment
235 opportunity materials designed to inform a person about the
236 prohibition against discrimination based on protected status
237 under state or federal law.
238 (g) Authorizing or permitting, in a content-neutral
239 manner, civic or community events, provided that:
240 1. Public funds are not expended for such an event.
241 2. A municipal employee is not required to promote or
242 attend such an event.
243 3. Such an event does not promote terrorism, racism, or
244 antisemitism.
245 (7) This section may not be construed to conflict with:
246 (a) Section 553.865 or analogous state and federal laws
247 protecting the right of males and females to restrooms and
248 changing facilities corresponding to their biological sex.
249 (b) Part XII of chapter 39 or analogous state and federal
250 laws ensuring that victims of domestic violence and their

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251 dependents have access to emergency shelters.
252 (c) Section 1000.05 or analogous state and federal laws
253 prohibiting discrimination based on biological sex in
254 educational programs, sports, activities, and employment.
255 (d) Chapter 381 or analogous state and federal laws
256 ensuring males and females have access to public health services
257 corresponding to their biological sex.
258 (e) State and federal laws ensuring a person has access to
259 public health services corresponding to his or her race or
260 ethnicity.
261 (f) Any other state or federal laws recognizing the
262 inherent biological differences between males and females for
263 the purpose of ensuring their health, safety, and welfare.
264 (8) This section does not apply to:
265 (a) The actions of a body composed of nonelected
266 volunteers; or
267 (b) Basic administrative support provided to a body
268 composed of nonelected volunteers, unless such administrative
269 support is provided by a municipal employee whose sole function
270 is the provision of such administrative support.
271 Section 3. Section 287.139, Florida Statutes, is created
272 to read:
273 287.139 Prohibition against using diversity, equity, and
274 inclusion material.—A potential recipient of a county or
275 municipal contract or grant shall certify to the county or

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276 municipality, as applicable, before being awarded such contract
277 or grant that the potential recipient does not and will not use
278 county or municipal funds in requiring its employees,
279 contractors, volunteers, vendors, or agents to ascribe to,
280 study, or be instructed using materials relating to diversity,
281 equity, and inclusion as defined in ss. 125.595(1) and
282 166.04971(1).
283 Section 4. This act shall take effect January 1, 2027.

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COMMERCE COMMITTEE

CS/HB 1001 by Rep. Black
Official Actions of Local Governments

AMENDMENT SUMMARY
February 26, 2026

Amendment #019831 by Rep. Black (Strike-All):
• Defines “acting in an official capacity” to mean performing or purporting to perform a
function, duty, or responsibility assigned by law, rule, or policy to a public officer or public
employee, or otherwise exercising or claiming to exercise the authority of such office or
employment.
• Removes the ability of local governments to continue to fund or promote community
events relating to diversity, equity, and inclusion (DEI) through June 30, 2027.
• Prohibits local governments from providing or authorizing funds to be used for DEI
initiatives.
• Specifies that the bill applies to contracts between a local government and a DEI officer
in existence on January 1, 2027, and applies to all other contracts executed or renewed
after January 1, 2027.
• Makes certain other technical, clarifying changes.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1001 (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: Commerce Committee
2 Representative Black offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Section 125.595, Florida Statutes, is created
7 to read:
8 125.595 Prohibition of official actions of counties
9 relating to diversity, equity, and inclusion; penalty; remedy.—
10 (1) For purposes of this section, the term:
11 (a) "Acting in an official capacity" means performing or
12 purporting to perform a function, duty, or responsibility
13 assigned by law, rule, or policy to a public officer or public
14 employee, or otherwise exercising or claiming to exercise the
15 authority of such office or employment.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1001 (2026)
Amendment No.

16 (b) "Diversity, equity, and inclusion" means any effort
17 to:
18 1. Manipulate or otherwise influence the composition of
19 employees with reference to race, color, sex, ethnicity, gender
20 identity, or sexual orientation other than to ensure that hiring
21 is conducted in accordance with state and federal
22 antidiscrimination laws;
23 2. Promote or provide preferential treatment or special
24 benefits to a person or group based on that person's or group's
25 race, color, sex, ethnicity, gender identity, or sexual
26 orientation; or
27 3. Promote or adopt training, programming, or activities
28 designed or implemented with reference to race, color, sex,
29 ethnicity, gender identity, or sexual orientation.
30
31 The term does not include the use of equal opportunity or equal
32 employment opportunity materials designed to inform a person
33 about the prohibition against discrimination based on protected
34 status under state or federal law.
35 (c) "Diversity, equity, and inclusion office" means any
36 office, division, department, agency, center, or other unit of a
37 county which coordinates, creates, develops, designs,
38 implements, organizes, plans, or promotes policies, programming,
39 training, practices, meetings, activities, procedures, or
40 similar actions relating to diversity, equity, and inclusion.
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Bill No. CS/HB 1001 (2026)
Amendment No.

41 (d) "Diversity, equity, and inclusion officer" means a
42 person who is a full-time or part-time employee of, or an
43 independent contractor contracted by, a county whose duties
44 include coordinating, creating, developing, designing,
45 implementing, organizing, planning, or promoting policies,
46 programming, training, practices, meetings, activities,
47 procedures, or similar actions relating to diversity, equity,
48 and inclusion.
49 (2) A county may not fund or promote, directly or
50 indirectly, or take any official action, including, but not
51 limited to, the adoption or enforcement of ordinances,
52 resolutions, rules, regulations, programs, or policies, as it
53 relates to diversity, equity, and inclusion. Any such existing
54 ordinances, resolutions, rules, regulations, programs, or
55 policies are void.
56 (3) A county may not expend any funds, regardless of
57 source, to establish, sustain, support, or staff a diversity,
58 equity, and inclusion office or to employ, contract, or
59 otherwise engage a person to serve as a diversity, equity, and
60 inclusion officer.
61 (4) A county commissioner or other county official acting
62 in an official capacity who violates this section commits
63 misfeasance or malfeasance in office.

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Amendment No.

64 (5) A county may not provide or authorize its funds to be
65 used by employees, contractors, volunteers, vendors, or agents
66 to promote diversity, equity, and inclusion initiatives.
67 (6) An action in circuit court may be brought by a
68 resident of the county against a county that violates this
69 section. The court may enter a judgment awarding declaratory and
70 injunctive relief, damages, and costs.
71 (7)(a) This section does not prohibit any official action
72 by a county required for compliance with state or federal laws
73 or regulations.
74 (b) This section does not prohibit a county from doing any
75 of the following:
76 1. Recognizing or promoting holidays designated by federal
77 law, including those designated in 5 U.S.C. s. 6103.
78 2. Recognizing or promoting state holidays and special
79 observances designated by state law, including those designated
80 in chapter 683.
81 3. Recognizing or promoting patriotic and national
82 observances recognized by federal law, including those
83 designated in 36 U.S.C. ss. 101-148, or recognizing the events
84 and individuals forming the basis for such observances.
85 4. Recognizing or honoring the individuals and groups
86 recognized and honored by the monuments, memorials, and museums
87 authorized by chapter 265, ss. 267.0722 and 267.0724, or
88 national monuments and memorials designated by acts of Congress,
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Bill No. CS/HB 1001 (2026)
Amendment No.

89 or recognizing the events and individuals forming the basis for
90 such monuments, memorials, or museums.
91 5. Issuing event permits in a content-neutral manner and
92 providing public safety services.
93 (c) This section does not prohibit the use of equal
94 opportunity or equal employment opportunity materials designed
95 to inform a person about the prohibition against discrimination
96 based on protected status under state or federal law.
97 (d) This section may not be construed to conflict with:
98 1. Section 553.865 or analogous state and federal laws
99 protecting the right of males and females to restrooms and
100 changing facilities corresponding to their biological sex.
101 2. Part XII of chapter 39 or analogous state and federal
102 laws ensuring that victims of domestic violence and their
103 dependents have access to emergency shelters.
104 3. Section 1000.05 or analogous state and federal laws
105 prohibiting discrimination based on biological sex in
106 educational programs, sports, activities, and employment.
107 4. Chapter 381 or analogous state and federal laws
108 ensuring males and females have access to public health services
109 corresponding to their biological sex.
110 5. State and federal laws ensuring access to public health
111 care services corresponding to a person's race or ethnicity.

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Bill No. CS/HB 1001 (2026)
Amendment No.

112 6. Any other state or federal laws recognizing the
113 inherent biological differences between males and females for
114 the purpose of ensuring their health, safety, and welfare.
115 (8) This section does not apply to:
116 (a) The actions of a body composed of nonelected
117 volunteers; or
118 (b) Basic administrative support provided to a body
119 composed of nonelected volunteers, unless such administrative
120 support is provided by a county employee whose sole function is
121 the provision of such administrative support.
122 Section 2. Section 166.04971, Florida Statutes, is created
123 to read:
124 166.04971 Prohibition of official actions of
125 municipalities relating to diversity, equity, and inclusion;
126 penalty; remedy.—
127 (1) For purposes of this section, the term:
128 (a) "Acting in an official capacity" means performing or
129 purporting to perform a function, duty, or responsibility
130 assigned by law, rule, or policy to a public officer or public
131 employee, or otherwise exercising or claiming to exercise the
132 authority of such office or employment.
133 (b) "Diversity, equity, and inclusion" means any effort
134 to:
135 1. Manipulate or otherwise influence the composition of
136 employees with reference to race, color, sex, ethnicity, gender
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Bill No. CS/HB 1001 (2026)
Amendment No.

137 identity, or sexual orientation other than to ensure that hiring
138 is conducted in accordance with state and federal
139 antidiscrimination laws;
140 2. Promote or provide preferential treatment or special
141 benefits to a person or group based on that person's or group's
142 race, color, sex, ethnicity, gender identity, or sexual
143 orientation; or
144 3. Promote or adopt training, programming, or activities
145 designed or implemented with reference to race, color, sex,
146 ethnicity, gender identity, or sexual orientation.
147
148 The term does not include the use of equal opportunity or equal
149 employment opportunity materials designed to inform a person
150 about the prohibition against discrimination based on protected
151 status under state or federal law.
152 (c) "Diversity, equity, and inclusion office" means any
153 office, division, department, agency, center, or other unit of a
154 municipality which coordinates, creates, develops, designs,
155 implements, organizes, plans, or promotes policies, programming,
156 training, practices, meetings, activities, procedures, or
157 similar actions relating to diversity, equity, and inclusion.
158 (d) "Diversity, equity, and inclusion officer" means a
159 person who is a full-time or part-time employee of, or an
160 independent contractor contracted by, a municipality whose
161 duties include coordinating, creating, developing, designing,
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Bill No. CS/HB 1001 (2026)
Amendment No.

162 implementing, organizing, planning, or promoting policies,
163 programming, training, practices, meetings, activities,
164 procedures, or similar actions relating to diversity, equity,
165 and inclusion.
166 (2) A municipality may not fund or promote, directly or
167 indirectly, or take any official action, including, but not
168 limited to, the adoption or enforcement of ordinances,
169 resolutions, rules, regulations, programs, or policies, as it
170 relates to diversity, equity, and inclusion. Any such existing
171 ordinances, resolutions, rules, regulations, programs, or
172 policies are void.
173 (3) A municipality may not expend any funds, regardless of
174 source, to establish, sustain, support, or staff a diversity,
175 equity, and inclusion office or to employ, contract, or
176 otherwise engage a person to serve as a diversity, equity, and
177 inclusion officer.
178 (4) Any member of the governing body of a municipality or
179 other municipal official acting in an official capacity who
180 violates this section commits misfeasance or malfeasance in
181 office.
182 (5) A municipality may not provide or authorize its funds
183 to be used by employees, contractors, volunteers, vendors, or
184 agents to promote diversity, equity, and inclusion initiatives.
185 (6) An action in circuit court may be brought by a
186 resident of the municipality against a municipality that
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Bill No. CS/HB 1001 (2026)
Amendment No.

187 violates this section. The court may enter a judgment awarding
188 declaratory and injunctive relief, damages, and costs.
189 (7)(a) This section does not prohibit any official action
190 by the governing body of a municipality required for compliance
191 with state or federal laws or regulations.
192 (b) This section does not prohibit a municipality from
193 doing any of the following:
194 1. Recognizing or promoting holidays designated by federal
195 law, including those designated in 5 U.S.C. s. 6103.
196 2. Recognizing or promoting state holidays and special
197 observances designated by state law, including those designated
198 in chapter 683.
199 3. Recognizing or promoting patriotic and national
200 observances recognized by federal law, including those
201 designated in 36 U.S.C. ss. 101-148, or recognizing the events
202 and individuals forming the basis for such observances.
203 4. Recognizing or honoring the individuals and groups
204 recognized and honored by the monuments, memorials, and museums
205 authorized by chapter 265, ss. 267.0722 and 267.0724, or
206 national monuments and memorials designated by acts of Congress,
207 or recognizing the events and individuals forming the basis for
208 such monuments, memorials, or museums.
209 5. Issuing event permits in a content-neutral manner and
210 providing public safety services.

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211 (c) This section does not prohibit the use of equal
212 opportunity or equal employment opportunity materials designed
213 to inform a person about the prohibition against discrimination
214 based on protected status under state or federal law.
215 (d) This section may not be construed to conflict with:
216 1. Section 553.865 or analogous state and federal laws
217 protecting the right of males and females to restrooms and
218 changing facilities corresponding to their biological sex.
219 2. Part XII of chapter 39 or analogous state and federal
220 laws ensuring that victims of domestic violence and their
221 dependents have access to emergency shelters.
222 3. Section 1000.05 or analogous state and federal laws
223 prohibiting discrimination based on biological sex in
224 educational programs, sports, activities, and employment.
225 4. Chapter 381 or analogous state and federal laws
226 ensuring males and females have access to public health services
227 corresponding to their biological sex.
228 5. State and federal laws ensuring access to public health
229 care services corresponding to a person's race or ethnicity.
230 6. Any other state or federal laws recognizing the
231 inherent biological differences between males and females for
232 the purpose of ensuring their health, safety, and welfare.
233 (8) This section does not apply to:
234 (a) The actions of a body composed of nonelected
235 volunteers; or
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Amendment No.

236 (b) Basic administrative support provided to a body
237 composed of nonelected volunteers, unless such administrative
238 support is provided by a municipal employee whose sole function
239 is the provision of such administrative support.
240 Section 3. Section 287.139, Florida Statutes, is created
241 to read:
242 287.139 Prohibition against using diversity, equity, and
243 inclusion material.—A potential recipient of a county or
244 municipal contract or grant shall certify to the county or
245 municipality, as applicable, before being awarded such contract
246 or grant that the potential recipient does not and will not use
247 county or municipal funds in requiring its employees,
248 contractors, volunteers, vendors, or agents to ascribe to,
249 study, or be instructed using materials relating to diversity,
250 equity, and inclusion as defined in ss. 125.595(1) and
251 166.04971(1).
252 Section 4. Section 287.139, Florida Statutes, created by
253 this act applies to any contract between a county or
254 municipality and a diversity, equity, and inclusion officer
255 which is in existence on January 1, 2027. With respect to all
256 other contracts, s. 287.139, Florida Statutes, created by this
257 act applies to contracts executed or renewed after January 1,
258 2027.
259 Section 5. This act shall take effect January 1, 2027.
260
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Bill No. CS/HB 1001 (2026)
Amendment No.

261 -----------------------------------------------------
262 T I T L E A M E N D M E N T
263 Remove everything before the enacting clause and insert:
264 An act relating to official actions of local
265 governments; creating ss. 125.595 and 166.04971, F.S.;
266 defining terms; prohibiting counties and
267 municipalities, respectively, from funding or
268 promoting or taking official action as it relates to
269 diversity, equity, and inclusion; providing that
270 certain ordinances, resolutions, rules, regulations,
271 programs, and policies are void; prohibiting counties
272 and municipalities, respectively, from expending funds
273 for diversity, equity, and inclusion offices or for
274 diversity, equity, and inclusion officers; providing
275 that a county commissioner, a member of the governing
276 body of a municipality, or any other county or
277 municipal official acting in an official capacity who
278 violates certain provisions commits misfeasance or
279 malfeasance in office; prohibiting counties and
280 municipalities, respectively, from providing or
281 authorizing funds to be used to promote diversity,
282 equity, and inclusion initiatives; authorizing a cause
283 of action against counties and municipalities,
284 respectively; authorizing a court to enter a judgment
285 awarding certain relief, damages, and costs; providing
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Amendment No.

286 applicability; creating s. 287.139, F.S.; requiring
287 potential recipients of county or municipal contracts
288 or grants to make a certain certification to the
289 county or municipality before being awarded such
290 contract or grant; providing applicability; providing
291 an effective date.

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CS/HB 1007
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1007 COMPANION BILL: CS/CS/SB 484 (Avila)
TITLE: Data Centers LINKED BILLS: None
SPONSOR(S): Griffitts RELATED BILLS: None
Committee References
State Affairs Commerce
24 Y, 1 N, As CS 

SUMMARY
Effect of the Bill:
The bill:
• Requires the Public Service Commission to develop minimum tariff and service requirements for large load
customers that ensure such customers pay their full cost of service and that prevent a public utility from
providing electric service to certain foreign entities that are large load customers.
• Prohibits agencies from entering into nondisclosure agreements that restrict disclosure of information
related to potential data center developments.
• Prohibits economic development agencies from extending the 12-month exemption from public record
requirements for information relating to a potential data center locating or expanding its business in this
state.
• Creates a consumptive use permitting framework for large-scale data centers.
• Prohibits issuance of a construction permit for certain data centers located within five miles of a residential
property or school, unless waived by unanimous vote of the membership of the governing body.

Fiscal or Economic Impact:
IThe bill will likely have an indeterminate, negative economic impact on the private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
Nondisclosure Agreements
The bill prohibits agencies 1 from entering into nondisclosure agreements or other contracts that restrict the
agency from disclosing information about a potential data center 2 development to members of the public. Any such
agreement entered into on or after July 1, 2026, is void and unenforceable as against public policy. An agency that
violates this provision is subject to a civil fine of up to $1,000. The bill authorizes the state attorney for the county
in which the violation occurred to bring an action to collect the fine. (Section 1)

Land Use for Large Load Customers
The bill provides legislative findings that certain land uses with substantial electric or utility demands may present
unique planning, infrastructure, and compatibility considerations. It states such considerations are to be addressed
through local comprehensive plans and land development regulations, including provisions related to
infrastructure capacity, land use compatibility, environmental impacts, and the efficient provision of public
facilities and services. (Section 2)

1 The bill defines “agency” to include state and local governmental entities and any person or entity acting on behalf of such an

entity.
2 The bill defines “data center” as a facility that primarily contains electronic equipment used to process, store, and transmit

digital information, whether as a standalone structure or within a larger facility.
STORAGE NAME: h1007a.COM
DATE: 2/24/2026
1
CS/HB 1007
The bill clarifies that local governments retain authority to exercise comprehensive planning and land
development regulatory powers with respect to large load customers. It further provides that a large load
customer may not be considered an electric substation for purposes of the streamlined substation approval
process. (Section 2)

The bill prohibits a local government from issuing a construction permit for a new data center if the proposed site
is located within five miles of any residential property or school, measured from the boundary of the parcel that
will contain the data center. The prohibition does not apply to construction, operations, or modifications of a data
center in existence as of the effective date of the act, unless such action results in the facility meeting the criteria
for a large-scale data center. 3 The five-mile prohibition may be waived by a unanimous vote of the total
membership of the governing body of the local government with jurisdiction over the parcel of land that will
contain the proposed data center. (Section 2)

These provisions take effect upon becoming a law. (Section 2)

Economic Development Agency Confidentiality
The bill provides that the 12-month extension of the public record exemption for information submitted to an
economic development agency concerning a business’s plans to locate or expand in this state does not apply to
information related to data centers. As a result, information concerning a potential data center development
remains confidential for the initial 12-month period but is not eligible for the additional 12-month extension.
(Section 4)

Large Load Tariffs
The bill requires the Florida Public Service Commission (PSC) to develop minimum service and tariff requirements
for large load customers 4 that receive electric service from a public electric utility. 5 Specifically, the service and
tariff requirements must:
• Reasonably ensure that each large load customer bears its own full cost of service 6 and that such cost is not
shifted to the general body of ratepayers. The bill provides that the risk of nonpayment of such costs may
not be borne by the general body of ratepayers.
• Include provisions reasonably designed to prevent a public utility from providing electric service to a
customer that would otherwise qualify as a large load customer if that customer is a foreign entity. The bill
defines the term “foreign entity” to mean an entity that is owned or controlled by 7 the government of a
foreign country of concern; 8 or a partnership, an association, a corporation, an organization, or other

3 The bill defines “large-scale data center” as a single location with a data center on site that has an anticipated monthly peak

load of 50 megawatts (MW) or more, calculated as the highest average load over a 15-minute interval. The definition excludes
loads aggregated across multiple locations owned by the same customer but includes collocated customers or entities
operating at a single location that meets the 50 MW threshold.
4 The bill defines “large load customer” to mean a customer with an anticipated monthly peak load of 50 MWs or more,

calculated as the highest average load over a 15-minute interval at a single location, including all customers or other entities
that have entered into a colocation or similar agreement at a single location, but not including a load aggregated across
multiple locations owned by the same customer.
5 The bill defines “public utility” to include every person, corporation, partnership, association, or other legal entity and their

lessees, trustees, or receivers supplying electricity to or for the public within this state but does not include gas utilities, rural
electric cooperatives, or municipal electric utilities.
6 The bill provides that a large load customer’s cost of service includes, but is not limited to, connection, incremental

transmission, incremental generation, and other infrastructure costs; operations and maintenance expenses; and any other
costs required to serve a large load customer.
7 The bill defines “controlled by” to mean having the power to direct or cause the direction of the management or policies of a

company, whether through ownership of securities, by contract, or otherwise. A person or an entity that directly or indirectly
has the right to vote 25 percent or more of the voting interests of the company or that is entitled to 25 percent or more of its
profits is presumed to control the entity.
8 The bill defines “foreign country of concern” to have the same meaning as in s. 692.201(3), F.S., which includes the People’s

Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the
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2
CS/HB 1007
combination of persons organized under the laws of or having its principal place of business in a foreign
country of concern, or a subsidiary of such entity. (Section 5)

The minimum service and tariff requirements developed by the PSC may include industry-accepted ratemaking
and other financial tools, including, but not limited to, all of the following:
• Contributions in aid of construction9 or other required customer infrastructure investments that may be
returned, in whole or in part, to such customers over time.
• Demand charges, 10 including minimum demand charges.
• Incremental generation charges.
• Financial guarantees.
• Minimum load factors.
• Take-or-pay provisions or similar provisions requiring payment for contracted capacity, regardless of a
large load customer’s actual electricity use or demand.
• Minimum period of service contract requirements, including early termination fees or other fees for
violation of such contracts. (Section 5)

The bill prohibits a customer from separating an electrical load at a single location into multiple smaller
connections to avoid being classified as a large load customer. (Section 5)

The bill provides that any tariff, contractual provision, service requirement, or other public utility policy relating to
large load customers may not prevent or otherwise hinder the electric service to a large load customer from being
curtailed or interrupted for purposes of ensuring grid stability, reducing the likelihood or breadth of wider service
outages, or ensuring public safety during an emergency or other exceptional circumstance. (Section 5)

The bill prohibits a public utility from knowingly providing electric service to a customer that would otherwise
qualify as a large load customer if that customer is a foreign entity. (Section 5)

The bill requires the PSC to propose a rule by March 1, 2027, to implement and administer the provisions of the bill
that require it to develop minimum service and tariff requirements for large load customers. Within 60 days after
the PSC adopts a final rule, each public utility must file, for PSC approval, a tariff that complies with the rule.
(Section 5)

Large-scale Data Center Permitting
The bill expresses legislative intent that the development and operation of large-scale data centers be managed
under a permitting framework that ensures water resources are used in the public interest, are not harmful to
water resources, and are consistent with local zoning and comprehensive plans. (Section 7)

The bill prohibits a water management district or the Department of Environmental Protection from issuing a
consumptive use permit (CUP) to a large-scale data center applicant if the proposed use of water is harmful to the
water resources of the area or is prohibited by applicable local zoning regulations or comprehensive plans. A CUP

Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic, including any agency of or any other
entity of significant control of such foreign country of concern.
9 Contributions in aid of construction (CIAC) in utility regulation are contributions of funds or property from new or

prospective customers to a utility to cover the cost of infrastructure upgrades needed to provide service to the customer. See,
e.g., National Association of Regulatory Utility Commissioners (NARUC), NARUC Desk Reference Manual, Ratemaking
Fundamentals and Principles (last visited Feb. 24, 2026); NARUC, State Utility Regulators Urge Passage of Bipartisan Water
Infrastructure Bill (last visited Feb. 24, 2026).
10 A “demand charge” is a rate based on electricity consumed at a given point in time, usually measured within a short window

of time. See National Association of Regulatory Utility Commissioners (NARUC), NARUC Desk Reference Manual, Ratemaking
Fundamentals and Principles (last visited Feb. 24, 2026)
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3
CS/HB 1007
must be issued if the applicant demonstrates that the proposed use is reasonable-beneficial, 11 will not interfere
with existing legal uses of water, and is consistent with the public interest. (Section 7)

The bill requires the use of reclaimed water in lieu of surface water or groundwater by a large-scale data center
when specified conditions are met, including:
• A suitable reclaimed water source is available and permitted.
• Reclaimed water distribution or supply lines are available at the property boundary in sufficient capacity
and quality to meet the applicant’s needs.
• The applicant is capable of accessing the reclaimed water source through distribution or supply lines.
• Use of reclaimed water is environmentally, economically, and technically feasible.
• Use of reclaimed water would not conflict with the requirements of the applicant’s surface water discharge
permit, if applicable. (Section 7)

For large-scale data center applications requesting an allocation of at least 100,000 gallons per day, the bill
requires additional application materials beyond those otherwise required for a CUP, including:
• The sources and amounts of water, as well as losses of water associated with cooling, industrial and
treatment processes, personal or sanitary needs of employees, and landscape irrigation.
• A water conservation plan that, at a minimum, incorporates recycling of cooling water before discharge or
disposal, implementation of a leak detection and repair program, use of water efficient fixtures, and
implementation of an employee awareness and education program concerning water conservation.
(Section 7)

The bill further provides that a permit application submitted by a large-scale data center may not be approved
without a hearing. Additionally, proposed modifications of a CUP submitted by a large-scale data center must be
processed in the same manner as the initial permit application. (Sections 7 and 8)

Effective Date
The effective date of the bill is July 1, 2026, except as otherwise provided in the act. (Section 9)

RULEMAKING:
The bill requires the PSC to propose a rule by March 1, 2027, to implement and administer the provisions of the bill
that require it to develop minimum service and tariff requirements for large load customers.

FISCAL OR ECONOMIC IMPACT:
PRIVATE SECTOR:
The bill is likely to affect the electricity rates, fees, and other costs applicable to large load customers served by
public electric utilities. The magnitude of any such impact is indeterminate and will depend on factors including
individual customer characteristics and the specific service and tariff requirements adopted by the Public Service
Commission. In addition, large-scale data centers seeking a CUP may incur increased compliance and
administrative costs associated with enhanced application requirements established under the bill.

11 Section 373.019(16), F.S., defines “reasonable-beneficial use” as the use of water in such quantity as is necessary for

economic and efficient utilization for a purpose and in a manner that is both reasonable and consistent with the public
interest.
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4
CS/HB 1007
RELEVANT INFORMATION
SUBJECT OVERVIEW:
Data Centers
A data center is a facility that contains information technology infrastructure used to process, store, and transmit
digital information. These facilities house large numbers of servers and related equipment and require significant
power infrastructure and cooling systems to maintain continuous operations. 12

Data centers vary in size, but large-scale and hyperscale facilities may require electric demand measured in tens or
hundreds of megawatts (MW) at a single location. 13 For context, a 100 MW load may represent electricity demand
comparable to 75,000 residential homes, and a 650 MW facility may be comparable to the electricity demand of
approximately 500,000 homes. 14 By comparison, Orange County, Florida, has approximately 550,000 total
households. 15

Large-scale data centers may also utilize significant volumes of water for cooling systems. Cooling processes may
involve evaporative cooling or other technologies that require water withdrawals from municipal systems,
groundwater wells, or other sources. 16 The International Energy Agency estimates that a 100 MW data center
consumes approximately the same amount of water as 2,600 households. 17

Nationally, data center electricity consumption has grown in recent years due to increased cloud computing,
artificial intelligence, and large-scale data processing. 18 As of 2025, approximately 41 percent of global data center
capacity is located in facilities with a power capacity of 100 MW or more, and that share is projected to increase by
20 percent in the next five years. 19 One 2025 analysis estimated that global data center capacity demand may triple
by 2030, with annual growth in the United States estimated between 20 and 25 percent. 20

Consumptive Use Permits
“Consumptive use” is defined as any use of water that reduces the supply from which it is withdrawn or diverted. 21
With limited exceptions, a person must obtain a consumptive use permit (CUP) before withdrawing surface water
or groundwater. 22 The Department of Environmental Protection (DEP) and Florida’s five water management
districts (WMDs) are authorized to issue CUPs and impose reasonable conditions to ensure that water use is
consistent with state water policy and not harmful to the water resources of the area. 23 In practice, CUP authority is
primarily delegated to WMDs.

To obtain a CUP, an applicant must demonstrate that the proposed use of water:
• Is a reasonable and efficient use of water for its intended purpose.

12 Amazon, What is a Data Center (last visited Feb. 24, 2026).
13 See IBM, What is Hyperscale? (last visited Feb. 24, 2026); Scout, Titans of Tech: Exploring American’s Largest Hyperscale Data

Centers (last visited Feb. 24, 2026).
14 IAEI Magazine, How Much Electricity Does a Data Center Use? Complete 2025 Analysis (last visited Feb. 24, 2026).
15 Census Reporter, Orange County, FL. (last visited Feb. 24, 2026).
16 Congressional Research Service, Data Centers and Their Energy Consumption: Frequently Asked Questions (last visited Feb.

20, 2026); Digital Realty, A Guide to Data Center Cooling: Future Innovations for Sustainability (last visited Feb. 24, 2026).
17 This figure does not account for water needed to produce electricity, which can also be substantial.
18 See Congressional Research Service, Data Centers and Their Energy Consumption: Frequently Asked Questions (last visited

Feb. 24, 2026).
19 See Orrick, Powering Data Centers (last visited Feb. 24, 2026).
20 McKinsey & Company, The Data Center Balance: How US States can Navigate the Opportunities and Challenges (last visited

Feb. 24, 2026).
21 R. 62-40.210, F.A.C.
22 See University of Florida, 2025 Handbook of Florida Water Regulation: Consumptive Use Permits (last visited Feb. 24, 2026).
23 S. 373.219(1), F.S. CUPs may generally be issued for a period of up to 20 years. See s. 373.236(1), F.S.

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CS/HB 1007
• Will not interfere with any presently existing legal use of water.
• Is consistent with the public interest. 24

CUP applications generally must identify the source of water, the quantity requested, the intended use of the water,
and supporting information demonstrating that the proposed withdrawal will not cause unacceptable impacts to
water resources or other users. 25 Depending on the quantity of water requested, permits may be processed under
general permitting criteria or may require a more detailed individual permit review. 26

CUPs may include conditions related to conservation, monitoring, reporting, and other measures necessary to
ensure that withdrawals remain within approved limits and do not harm water resources. 27

Reclaimed Water
Current law encourages the use of reclaimed water as an alternative water supply source where feasible. 28
Reclaimed water is treated domestic wastewater that is suitable for beneficial reuse purposes, including irrigation
and certain industrial uses. 29 WMDs may require the use of reclaimed water in lieu of groundwater or surface
water when it is available, environmentally sound, and economically feasible. 30

Hearings
CUP applications are subject to public notice requirements. 31 The notice must state that written objections may be
filed with the governing board. A hearing on the application is required unless:
• The application is for less than 100,000 gallons per day; or
• The application is for 100,000 or more gallons per day, no objection was received, and the governing
board’s staff has properly investigated the matter. 32

Modification and Renewal of Permits
A permittee may request modification of the terms of an unexpired CUP. 33 If a proposed modification involves
water use of 100,000 or more gallons per day, the application must be processed in the same manner as an initial
permit application. 34 For modifications involving less than 100,000 gallons per day, the governing board may
approve the request without a hearing if the permittee demonstrates that:
• Changed conditions have made the authorized water allocation inadequate; or
• The proposed modification would result in more efficient water use. 35

Applications to renew an existing permit are processed in the same manner as an initial permit application. 36

Economic Development Agency Confidentiality
Current law provides a public record exemption for certain information submitted to economic development
agencies relating to a private business’s plans to locate, relocate, or expand operations in the state. If a private

24 S. 373.223(1), F.S.
25 See s. 373.229(1), F.S.
26 See University of Florida, 2025 Handbook of Florida Water Regulation: Consumptive Use Permits (last visited Feb. 24, 2026);

see e.g., R. 40E-2.301, F.A.C.
27 See South Florida Water Management District, Consumptive Water Use Permits (last visited Feb. 24, 2026).
28 S. 373.250(1), F.S.
29 S. 373.019(17), F.S.; DEP, Uses of Reclaimed Water (last visited Feb. 24, 2026).
30 S. 373.250(3)(c), F.S. Industrial facilities that discharge wastewater into surface waters may also be required to obtain a

separate surface water discharge permit administered by DEP, which establishes conditions governing such discharges. See
DEP, Industrial Wastewater (last visited Feb. 24, 2026).
31 S. 373.116, F.S.
32 S. 373.229(2)-(4), F.S.
33 S. 373.239(1), F.S.
34 S. 373.239(2), F.S.
35 Id.
36 S. 373.239(3), F.S.

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CS/HB 1007
entity requests confidentiality in writing before an economic incentive agreement is signed, information
concerning the business’s plans, intentions, or interests in locating, relocating, or expanding in Florida is
confidential and exempt 37 from public disclosure for 12 months after the request is received, or until the
information is otherwise disclosed, whichever occurs first. 38

An economic development agency may extend this confidentiality period for up to an additional 12 months upon
written request and a finding that the business is still actively considering the project. 39 If a final project order for a
signed economic development agreement is issued, the information may remain confidential for up to 180 days
after the issuance, provided that the total period of confidentiality does not exceed the time limits otherwise
authorized by law. 40

A public officer or employee may not enter into a binding agreement with a business entity that has requested
confidentiality until 90 days after the information is made public, unless the agreement is entered into in an official
capacity, does not accrue to the personal benefit of the officer or employee, and is deemed necessary to effectuate
an economic development project. 41

Florida Public Service Commission
The Florida Public Service Commission (PSC) is an arm of the legislative branch of government. 42 The PSC is tasked
with ensuring Florida’s consumers receive utility services, including electric, natural gas, telephone, water, and
wastewater, in a safe and reliable manner and at fair prices. 43 In order to do so, the PSC exercises authority over
utilities in one or more of the following areas: rate base or economic regulation; competitive market oversight; and
monitoring of safety, reliability, and service issues. 44

Electric Utility Regulation
Florida law provides that the regulation of public utilities is in the public interest and grants the PSC exclusive
jurisdiction to do so. 45 The PSC monitors the safety and reliability of the electric power grid 46 and may order the
addition or repair of infrastructure as necessary. 47 The PSC has broad jurisdiction over the rates and service of
investor-owned electric and gas utilities 48 Additionally, the PSC has limited jurisdiction over municipal electric
utilities (utilities owned or operated on behalf of a municipality) and rural electric cooperatives, regulating such
utilities only with regard to rate structure, territorial boundaries, and bulk power supply operations and
planning. 49 Utility rates and revenues of municipally owned utilities are regulated by their respective local
governments or local utility boards. Rates and revenues for a cooperative utility are regulated by its governing
body elected by the cooperative’s membership.

37 There is a difference between records the Legislature designates exempt from public record requirements and those the

Legislature designates confidential and exempt. A record classified as exempt from public disclosure may be disclosed under
certain circumstances. See WFTV, Inc. v. Sch. Bd. of Seminole, 874 So.2d 48, 53 (Fla. 5th DCA 2004), review denied, 892 So.2d
1015 (Fla. 2004); State v. Wooten, 260 So. 3d 1060, 1070 (Fla. 4th DCA 2018); City of Rivera Beach v. Barfield, 642 So.2d 1135
(Fla. 4th DCA 1994); Williams v. City of Minneola, 575 So.2d 683, 687 (Fla. 5th DCA 1991). If the Legislature designates a record
as confidential and exempt from public disclosure, such record may not be released by the custodian of public records to
anyone other than the persons or entities specifically designated in statute. See Op. Att’y Gen. Fla. 04-09 (2004).
38 S. 288.075(2)(a)1., F.S.
39 S. 288.075(2)(a)2., F.S.
40 Id.
41 Id.
42 S. 350.001, F.S.
43 See Florida Public Service Commission (PSC), Florida Public Service Commission (last visited Feb. 24, 2026).
44 PSC, About the PSC (last visited Feb. 24, 2026).
45 Ss. 366.01 and 366.04(1), F.S.
46 S. 366.04(5)-(6), F.S.
47 S. 366.05(1) and (8), F.S.
48 S. 366.05, F.S.
49 PSC, About the PSC (last visited Feb. 24, 2026).

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Public Electric Utilities in Florida
There are four public utilities (also referred to as investor-owned utilities) providing electric service in Florida:
Florida Power & Light Company, Duke Energy Florida, Tampa Electric Company, and Florida Public Utilities
Corporation. 50

Public utility rates and revenues are regulated by the PSC, and these utilities must file periodic earnings reports.
This allows the PSC to monitor earnings levels on an ongoing basis and adjust customer rates quickly if a company
appears to be overearning. 51 If a utility believes it is earning below a reasonable level, it may petition the PSC for a
change in rates. 52

Florida law establishes a duty for each public utility to provide sufficient, adequate, and efficient service to all
customers within its established service territory upon terms approved by the PSC. 53 As compensation for fulfilling
that obligation, public utilities are entitled to recover honestly and prudently invested costs of providing service,
including investments in infrastructure and operating expenses used to provide electric service. 54

PSC Rate Setting for Public Utilities
Florida law grants the PSC jurisdiction to regulate and supervise each public utility with respect to its rates and
service, and requires a public utility to submit an application to the PSC for any requested change in rates. 55 No
public utility may be denied a reasonable rate of return upon its rate base. 56 In fixing just, reasonable, and
compensatory rates, the PSC must consider:
• The efficiency, sufficiency, and adequacy of the facilities provided and the services rendered.
• The cost of providing such service and the value of such service to the public.
• The ability of the utility to improve such service and facilities.
• Energy conservation and the efficient use of alternative energy resources; provided that no public utility is
denied a reasonable rate of return upon its rate base. 57

A public utility’s tariffs are a series of documents that set forth the utility’s rates, terms, and conditions for service
as approved by the PSC. These tariffs also include standardized forms for the utility’s service offerings and its
standard contracts and agreements. Tariffs are generally revised, as necessary, after a PSC-approved change in a
utility’s rates or charges and are generally part of any proceeding revising rates or charges. Utilities may also
request a tariff change if circumstances warrant doing so.

Local Comprehensive Planning
The Community Planning Act 58 provides counties and municipalities with the power to plan for future
development by adopting comprehensive plans. 59 Each county and municipality must maintain a comprehensive
plan to guide future development and growth. 60

All development, both public and private, and all development orders approved by local governments must be
consistent with the local government’s comprehensive plan. 61 A comprehensive plan is intended to provide for the

50 PSC, 2025 Facts and Figures of the Florida Utility Industry (last visited Feb. 24, 2026).
51 PSC, 2025 Annual Report (last visited Feb. 24, 2026).
52 Id.
53 S. 366.03, F.S.
54 Id.; s. 366.06, F.S.
55 Ss. 366.04(1) and 366.06(1), F.S.
56 S. 366.041(1), F.S.
57 Id.
58 Ch. 163, Part II, F.S.
59 S. 163.3167(1), F.S.
60 S. 163.3167(2), F.S.
61 S. 163.3194(1)(a), F.S.

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future use of land, which contemplates a gradual and ordered growth, and establishes a long-range maximum limit
on the possible intensity of land use. 62

A locality’s comprehensive plan lays out the locations for future public facilities, including roads, water and sewer
facilities, neighborhoods, parks, schools, and commercial and industrial developments. 63 A comprehensive plan is
made up of 10 required elements, each laying out regulations for a different facet of development. 64 Local
governments may also include optional elements in their comprehensive plan. 65 The 10 required elements are:
• Capital improvements.
• Future land use plan.
• Transportation.
• General sanitary sewer, solid waste, drainage, potable water and natural groundwater aquifer recharge.
• Conservation.
• Recreation and open space.
• Housing.
• Coastal management.
• Intergovernmental coordination.
• Property rights.66

Comprehensive plans must include at least two planning periods, one covering the first 10-year period occurring
after the plan’s adoption and one covering a period of at least 20 years. 67 Additional planning periods are
permissible and accepted as part of the planning process.

Each county and municipality must adopt and enforce land development regulations consistent with and that
implement its adopted comprehensive plan. 69 Local governments are encouraged to use innovative land
development regulations 70 and may adopt measures for the purpose of increasing affordable housing using land
use mechanisms. 71

Electric Substations
The Legislature has expressed its intent to ensure the construction and maintenance of adequate and reliable
electric infrastructure while balancing land use compatibility. 72 Current law establishes a streamlined approval
process for electric substations. An “electric substation” is a facility that takes electricity from the transmission grid
and converts it to another voltage for distribution to customers. 73

62 See, e.g., Sarasota County, Fla. Comprehensive Plan, Future Land Use Element, FLU Policy 1.1.1 (last visited Feb. 24, 2026).
63 S. 163.3177(1), F.S.
64 S. 163.3177(6), F.S.
65 S. 163.3177(1)(a), F.S.
66 S. 163.3177(3), (6)(a)-(i), F.S.
67 S. 163.3177(5)(a), F.S.
68 S. 163.3164(26), F.S.
69 S. 163.3202(1), F.S.
70 S. 163.3202(3), F.S.
71 Ss. 125.01055 and 166.04151, F.S.
72 S. 163.3208(1), F.S.
73 S. 163.3208(2), F.S.

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Local governments may adopt and enforce reasonable land development regulations for electric substations, but
such regulations are limited to setback, landscaping, buffering, screening, lighting, and other aesthetic
compatibility-based standards. 74 In reviewing substation applications, local governments may not evaluate a
utility’s business decisions regarding service or customer demand. 75 Substations are generally considered a
permitted use in all land use categories within a utility’s service territory, except in areas designated for
preservation, conservation, or historic preservation. 76

If an application for a substation complies with applicable local standards, the local government must approve the
application. 77 Specific timelines govern review of such applications, and a local government’s failure to act within
those timeframes may result in automatic approval. 78
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
State Affairs Committee 24 Y, 1 N, As CS 2/24/2026 Williamson Villa

THE CHANGES ADOPTED BY THE • Removed provisions relating to hyperscale data centers.
COMMITTEE: • Prohibited state and local government entities from entering into
nondisclosure agreements concerning potential data center
developments.
• Required the PSC to develop minimum tariff and service requirements
for large load customers.
• Prohibited state and local economic development agencies from
extending the 12-month public record exemption for records relating
to certain data center projects.
• Created a consumptive use permitting framework for large-scale data
centers.
• Prohibited local governments from issuing construction permits for
new data centers located within five miles of a residential property or
school, unless waived by a unanimous vote of the governing body.
Commerce Committee Hamon Rubottom

74 S. 163.3208(3), F.S.
75 S. 163.3208(6)(b), F.S.
76 S. 163.3208(3), F.S.
77 S. 163.3208(5), F.S.
78 S. 163.3208(8), F.S.

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CS/HB 1007 2026

1 A bill to be entitled
2 An act relating to data centers; creating s. 112.231,
3 F.S.; defining terms; prohibiting an agency from
4 entering into a nondisclosure agreement or other
5 contract that restricts the agency from disclosing
6 certain information to the public; providing that an
7 agreement or contract, or a provision of an agreement
8 or contract, is void and unenforceable under certain
9 circumstances; providing civil penalties; authorizing
10 the state attorney to bring an action to collect a
11 fine; providing applicability; creating s. 163.326,
12 F.S.; providing legislative findings; specifying that
13 local governments maintain authority to exercise power
14 and responsibility over comprehensive planning and
15 land development regulations related to large load
16 customers; prohibiting a large load customer from
17 being considered an electric substation; prohibiting a
18 local government from issuing a construction permit
19 for a certain new data center or support facilities in
20 specified areas; permitting the local government to
21 waive the prohibition under certain circumstances;
22 providing a directive to the Division of Law Revision;
23 amending s. 288.075, F.S.; providing a definition;
24 providing an exception to a provision allowing an
25 extension of certain confidentiality protections;

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26 creating s. 366.043, F.S.; providing legislative
27 findings; defining terms; requiring the Florida Public
28 Service Commission to develop minimum tariff and
29 service requirements for large load customers;
30 requiring that such requirements ensure that large
31 load customers bear their costs of service and that
32 such costs are not shifted to the general body of
33 ratepayers; requiring certain measures to minimize the
34 risk of nonpayment of such costs; requiring that such
35 minimum tariff and service requirements include
36 certain provisions designed to prevent a public
37 utility from providing electric service to a large
38 load customer that is a foreign entity; prohibiting a
39 customer from separating a certain electrical load
40 into multiple smaller connections for a specified
41 purpose; authorizing the commission to include certain
42 measures in minimum tariff and service requirements;
43 prohibiting any tariff, contractual provision, service
44 requirement, or other public utility policy from
45 preventing or hindering the curtailment or
46 interruption of electric service to a large load
47 customer for certain purposes; prohibiting a public
48 utility from knowingly providing electric service to a
49 large load customer that is a foreign entity;
50 requiring the commission to adopt rules by a specified

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51 date; specifying a deadline for utilities to file a
52 tariff in compliance with the final rule; amending s.
53 373.203, F.S.; defining terms; creating s. 373.262,
54 F.S.; providing legislative intent; prohibiting the
55 governing board of a water management district or the
56 Department of Environmental Protection from issuing a
57 permit for the consumptive use of water to a large-
58 scale data center under certain circumstances;
59 requiring that such permit be issued to a large-scale
60 data center applicant if the applicant establishes
61 that the proposed use of water satisfies certain
62 requirements; requiring the governing board or the
63 department to require the use of reclaimed water for a
64 large-scale data center applicant's allocation when
65 certain requirements are met; specifying requirements
66 for certain permit applications; prohibiting the
67 approval of permit applications without a hearing;
68 amending s. 373.239, F.S.; requiring that consumptive
69 use permit modifications proposed by a large-scale
70 data center be treated in a specified manner;
71 providing effective dates.
72
73 Be It Enacted by the Legislature of the State of Florida:
74
75 Section 1. Section 112.231, Florida Statutes, is created

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76 to read:
77 112.231 Data center nondisclosure agreements.—
78 (1) As used in this section, the term:
79 (a) "Agency" means any state, county, district, authority,
80 or municipal officer, public employee, department, division,
81 board, bureau, or commission, or other separate unit of
82 government created or established by law and any other public or
83 private agency, person, partnership, corporation, or business
84 entity acting on behalf of any such agency.
85 (b) "Data center" means a facility that primarily contains
86 electronic equipment used to process, store, and transmit
87 digital information, which may be:
88 1. A free-standing structure; or
89 2. A facility within a larger structure which uses
90 environmental control equipment to maintain the proper
91 conditions for the operation of electronic equipment.
92 (2) An agency may not enter into a nondisclosure agreement
93 or other contract restricting the agency from disclosing
94 information about a potential data center development to members
95 of the public.
96 (3) An agreement or contract, or a provision of an
97 agreement or contract, that violates this section is against
98 public policy and is void and unenforceable.
99 (4) An agency that violates this section is subject to a
100 civil fine of not more than $1,000. The state attorney of the

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101 county in which the violation occurred may bring an action to
102 collect the fine.
103 (5) This section applies to agreements entered into on or
104 after July 1, 2026.
105 Section 2. Effective upon becoming a law, section 163.326,
106 Florida Statutes, is created to read:
107 163.326 Large load customer considerations.—
108 (1) The Legislature finds that certain land uses,
109 including facilities with substantial electric or other utility
110 demands, such as data centers and other large load customers as
111 defined in s. 366.043(2), may present unique planning,
112 infrastructure, and compatibility considerations. The
113 Legislature intends that such considerations shall be addressed
114 through local comprehensive planning and land development
115 regulations adopted pursuant to this chapter, including
116 provisions related to infrastructure capacity, land use
117 compatibility, environmental impacts, and the efficient
118 provision of public facilities and services.
119 (2) Local governments shall maintain the authority to
120 exercise the powers and responsibilities for comprehensive
121 planning and land development regulation granted by law with
122 respect to large load customers. A large load customer may not
123 be considered an electric substation for the purposes of s.
124 163.3208.
125 (3)(a) A local government may not issue a construction

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126 permit for a new data center, as defined in s. 373.203, if the
127 proposed location of such center is sited within 5 miles of any
128 residential property or school, as measured from the boundary of
129 the parcel of land that will include the proposed data center.
130 This subsection does not apply to any existing construction,
131 current operation, or modification of a data center in existence
132 on the effective date of this section, unless such construction,
133 operation, or modification results in the data center meeting
134 the criteria to be considered a large-scale data center as
135 defined in s. 373.203.
136 (b) The prohibition in paragraph (a) may be waived by a
137 unanimous vote of the total membership of the governing body of
138 the local government with jurisdiction over the parcel of land
139 that will include the proposed data center.
140 Section 3. The Division of Law Revision is directed to
141 replace the phrase "the effective date of this section" wherever
142 it occurs in this act with the date that section becomes a law.
143 Section 4. Paragraphs (a), (b), and (c) of subsection (1)
144 of section 288.075, Florida Statutes, are redesignated as
145 paragraphs (b), (c), and (d), respectively, paragraph (a) of
146 subsection (2) is amended, and a new paragraph (a) is added to
147 subsection (1) of that section, to read:
148 288.075 Confidentiality of records.—
149 (1) DEFINITIONS.—As used in this section, the term:
150 (a) "Data center" has the same meaning as in s. 373.203.

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151 (2) PLANS, INTENTIONS, AND INTERESTS.—
152 (a)1. If a private corporation, partnership, or person
153 requests in writing before an economic incentive agreement is
154 signed that an economic development agency maintain the
155 confidentiality of information concerning plans, intentions, or
156 interests of such private corporation, partnership, or person to
157 locate, relocate, or expand any of its business activities in
158 this state, the information is confidential and exempt from s.
159 119.07(1) and s. 24(a), Art. I of the State Constitution for 12
160 months after the date an economic development agency receives a
161 request for confidentiality or until the information is
162 otherwise disclosed, whichever occurs first.
163 2. An economic development agency may extend the period of
164 confidentiality specified in subparagraph 1. for up to an
165 additional 12 months upon written request from the private
166 corporation, partnership, or person who originally requested
167 confidentiality under this section and upon a finding by the
168 economic development agency that such private corporation,
169 partnership, or person is still actively considering locating,
170 relocating, or expanding its business activities in this state.
171 Such a request for an extension in the period of confidentiality
172 must be received prior to the expiration of any confidentiality
173 originally provided under subparagraph 1. This subparagraph does
174 not apply to information described in subparagraph 1. related to
175 data centers.

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176
177 If a final project order for a signed economic development
178 agreement is issued, then the information will remain
179 confidential and exempt for 180 days after the final project
180 order is issued, until a date specified in the final project
181 order, or until the information is otherwise disclosed,
182 whichever occurs first. However, such period of confidentiality
183 may not extend beyond the period of confidentiality established
184 in subparagraph 1. or subparagraph 2.
185 Section 5. Section 366.043, Florida Statutes, is created
186 to read:
187 366.043 Large load tariffs for public electric utilities.—
188 (1) The Legislature finds that the provision of safe and
189 reliable electric services, provided at fair, just, and
190 reasonable rates, is essential to the welfare of the ratepayers
191 of this state. The Legislature further finds that when one class
192 of electric service customer requires uniquely large electrical
193 loads at a single location, it imposes a disproportionate risk
194 on the other ratepayers of this state and makes it necessary for
195 the commission to develop and enforce rate structures and other
196 policies for such customers which ensure such risk is mitigated
197 as much as possible and prevent shifting the costs of serving
198 large load customers to the general body of ratepayers.
199 (2) As used in this section, the term:
200 (a) "Controlled by" means having the power to direct or

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201 cause the direction of the management or policies of a company,
202 whether through ownership of securities, by contract, or
203 otherwise. A person or an entity that directly or indirectly has
204 the right to vote 25 percent or more of the voting interests of
205 the company or that is entitled to 25 percent or more of its
206 profits is presumed to control the entity.
207 (b) "Foreign country of concern" has the same meaning as
208 in s. 692.201.
209 (c) "Foreign entity" means an entity that is:
210 1. Owned or controlled by the government of a foreign
211 country of concern; or
212 2. A partnership, an association, a corporation, an
213 organization, or other combination of persons organized under
214 the laws of or having its principal place of business in a
215 foreign country of concern, or a subsidiary of such entity.
216 (d) "Large load customer" means a customer with an
217 anticipated monthly peak load of 50 megawatts or more,
218 calculated as the highest average load over a 15-minute interval
219 at a single location. The term does not include a load
220 aggregated across multiple locations owned by the same customer.
221 However, the term includes all customers or other entities that
222 have entered into a colocation or similar agreement at a single
223 location that otherwise meets the anticipated monthly peak load
224 provided in this paragraph.
225 (e) "Public utility" has the same meaning as in s. 366.02,

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226 except that the term does not include a gas utility.
227 (3) The commission shall develop minimum tariff and
228 service requirements for large load customers pursuant to all of
229 the following:
230 (a) The minimum tariff and service requirements must
231 reasonably ensure that each large load customer bears its own
232 full cost of service and that such cost is not shifted to the
233 general body of ratepayers. Such cost of service includes, but
234 is not limited to, connection, incremental transmission,
235 incremental generation, and other infrastructure costs;
236 operations and maintenance expenses; and any other costs
237 required to serve a large load customer. The risk of nonpayment
238 of such costs may not be borne by the general body of
239 ratepayers.
240 (b) The minimum tariff and service requirements must
241 include provisions reasonably designed to prevent a public
242 utility from providing electric service to a customer that would
243 otherwise qualify as a large load customer if that customer is a
244 foreign entity.
245 (4) A customer may not separate an electrical load at a
246 single location into multiple smaller connections to avoid being
247 classified as a large load customer.
248 (5) To effectuate the requirements of subsection (3), the
249 commission may include in such requirements utility industry-
250 accepted ratemaking and other financial tools, including, but

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251 not limited to, all of the following:
252 (a) Contributions in aid of construction or other required
253 customer infrastructure investments that may be returned, in
254 whole or in part, to such customers over time.
255 (b) Demand charges, including minimum demand charges.
256 (c) Incremental generation charges.
257 (d) Financial guarantees.
258 (e) Minimum load factors.
259 (f) Take-or-pay provisions or similar provisions requiring
260 payment for contracted capacity, regardless of a large load
261 customer's actual electricity use or demand.
262 (g) Minimum period of service contract requirements,
263 including early termination fees or other fees for violation of
264 such contracts.
265 (6) Any tariff, contractual provision, service
266 requirement, or other public utility policy relating to large
267 load customers may not prevent or otherwise hinder the
268 curtailment or interruption of electric service to a large load
269 customer where such curtailment or interruption is intended to
270 ensure grid stability, reduce the likelihood or breadth of wider
271 service outages, or ensure public safety during an emergency or
272 other exceptional circumstance.
273 (7) A public utility may not knowingly provide electric
274 service to a customer that would otherwise qualify as a large
275 load customer if that customer is a foreign entity.

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276 (8) The commission shall adopt rules to implement and
277 administer this section and shall propose a rule for adoption by
278 March 1, 2027.
279 (9) Within 60 days after adoption of the final rule
280 implementing this section, each public utility shall file, for
281 commission approval, a tariff that complies with the final rule.
282 Section 6. Effective upon becoming a law, subsections (3)
283 and (4) of section 373.203, Florida Statutes, are redesignated
284 as subsections (5) and (6), respectively, and new subsections
285 (3) and (4) are added to that section, to read:
286 373.203 Definitions.—
287 (3) "Data center" means a facility that primarily contains
288 electronic equipment used to process, store, and transmit
289 digital information, which may be:
290 (a) A free-standing structure; or
291 (b) A facility within a larger structure which uses
292 environmental control equipment to maintain the proper
293 conditions for the operation of electronic equipment.
294 (4) "Large-scale data center" means a single location,
295 with a data center on site, that has an anticipated monthly peak
296 load of 50 megawatts or more, calculated as the highest average
297 load over a 15-minute interval. The term does not include a load
298 aggregated across multiple locations owned by the same customer.
299 However, the term includes all customers or other entities that
300 have entered into a colocation or similar agreement at a single

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301 location that otherwise meets the anticipated monthly peak load
302 provided in this subsection.
303 Section 7. Section 373.262, Florida Statutes, is created
304 to read:
305 373.262 Large-scale data center permitting.—
306 (1) It is the intent of the Legislature that the
307 development and operation of large-scale data centers in this
308 state be managed under a permitting framework that ensures this
309 state's water resources are used in the public interest, in a
310 manner that is not harmful to the water resources of this state,
311 and consistent with local government zoning regulations and
312 comprehensive plans.
313 (2) Consistent with other provisions of this part, the
314 governing board of a water management district or the department
315 may not issue a permit to a large-scale data center applicant
316 for an allocation of water if the proposed use of the water is
317 harmful to the water resources of the area or is prohibited by
318 the applicable local government zoning regulations and
319 comprehensive plan. A permit shall be issued to a large-scale
320 data center applicant for an allocation of water if the
321 applicant establishes that the proposed use of water:
322 (a) Is a reasonable-beneficial use as defined in s.
323 373.019;
324 (b) Will not interfere with any presently existing legal
325 use of water; and

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326 (c) Is consistent with the public interest.
327 (3) The governing board or the department shall require
328 the use of reclaimed water in lieu of all or a portion of a
329 proposed use of surface water or groundwater by a large-scale
330 data center applicant when:
331 (a) A suitable reclaimed water supply source is available
332 and permitted;
333 (b) Reclaimed water distribution or supply lines are
334 available at the property boundary in sufficient capacity and
335 quality to serve the applicant's needs;
336 (c) The applicant is capable of accessing the reclaimed
337 water source through distribution or supply lines;
338 (d) Use of reclaimed water is environmentally,
339 economically, and technically feasible; and
340 (e) Use of reclaimed water would not conflict with the
341 requirements contained in the applicant's surface water
342 discharge permit, if applicable.
343 (4)(a) In addition to the requirements of s. 373.229, all
344 permit applications made under this part requesting an
345 allocation of at least an average daily flow of 100,000 gallons
346 of water per day by a large-scale data center must contain:
347 1. All sources and amounts of water and losses of water
348 used for cooling, industrial and treatment processes, personal
349 or sanitary needs of employees, and landscape irrigation; and
350 2. A water conservation plan that, at a minimum,

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351 incorporates recycling cooling water before discharge or
352 disposal, implementation of a leak detection and repair program,
353 use of water efficient fixtures, and implementation of an
354 employee awareness and education program concerning water
355 conservation.
356 (b) Notwithstanding s. 373.229(4), the governing board or
357 the department may not approve a permit application made under
358 this part by a large-scale data center without a hearing.
359 Section 8. Subsection (2) of section 373.239, Florida
360 Statutes, is amended to read:
361 373.239 Modification and renewal of permit terms.—
362 (2) If the proposed modification involves water use of
363 100,000 gallons or more per day or is proposed by a large-scale
364 data center as defined in s. 373.203, the application shall be
365 treated under the provisions of s. 373.229 in the same manner as
366 the initial permit application. Otherwise, the governing board
367 or the department may at its discretion approve the proposed
368 modification without a hearing, provided the permittee
369 establishes that:
370 (a) A change in conditions has resulted in the water
371 allowed under the permit becoming inadequate for the permittee's
372 need, or
373 (b) The proposed modification would result in a more
374 efficient utilization of water than is possible under the
375 existing permit.

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376 Section 9. Except as otherwise expressly provided in this
377 act and except for this section, which shall take effect upon
378 becoming a law, 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 #: CS/CS/HB 1177 COMPANION BILL: SB 1512 (Burgess)
TITLE: Spaceport Operations and Space Florida LINKED BILLS: HB 1179 Sirois
SPONSOR(S): Sirois RELATED BILLS: None
Committee References
Ways & Means Transportation & Economic Commerce
18 Y, 1 N, As CS  Development Budget 
13 Y, 0 N, As CS

SUMMARY
Effect of the Bill:
The bill provides that Space Florida is not subject to the competitive bidding requirements of s. 255.20, F.S., when
purchasing professional or construction services, or both, using funds that are not appropriated by the Legislature.

The bill also provides that operational oversight, management, and day-to-day administration of each spaceport in
Florida is vested in the spaceport’s director or commander and requires each spaceport to develop and maintain an
operational governance plan consistent with Space Florida’s statewide strategic plan. The bill requires each
spaceport to maintain an updated list of spaceport site readiness development projects and specifies the types of
projects to be included on the list. Additionally, the bill defines the term “quintimodal transportation hub” and
requires Space Florida to enhance and promote development and use of such hubs in Florida.

Fiscal or Economic Impact:
The bill creates new responsibilities and requirements for Florida’s spaceports and Space Florida. The costs of the
reporting, planning, and coordinating requirements provided in the bill will be absorbed within the existing
resources of Florida’s spaceports and Space Florida.
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ANALYSIS
EFFECT OF THE BILL:
The bill provides that Space Florida is not subject to the competitive bidding requirements of s. 255.20, F.S., when
purchasing professional or construction services, or both, using funds that are not appropriated by the Legislature.
The bill requires that for such purchases Space Florida attest in writing that the funds used are not appropriated by
the legislature. (Section 1)

The bill distinguishes the authority of individual spaceports in relation to Space Florida’s authority. In particular,
the bill provides that, notwithstanding any other provision of Space Florida’s governing statutes, authority over the
operational oversight, management, and day-to-day administration of each spaceport shall be vested in the
spaceport director or commander1 for that facility. The bill prohibits Space Florida from exercising direct control
over local operational decisions unless specifically requested in writing by the spaceport director or commander or
required to comply with applicable federal law or regulation. The bill provides that these terms do not diminish
Space Florida’s authority to finance, lease, or own spaceport facilities or to coordinate economic development
initiatives across multiple spaceport territories. Further, the bill specifies that Space Florida is responsible for
statewide strategic planning, financing, economic development, and intergovernmental coordination. These
provisions do not apply to federal property. (Sections 2 and 4)

1 The bill defines "spaceport director or commander" to mean “the individual designated by the governing body, agency, or

military authority of a spaceport territory to administer the operations, maintenance, safety, and local agreements of that
facility.”
STORAGE NAME: h1177c.COM
DATE: 2/20/2026
1
CS/CS/HB 1177

The bill requires each spaceport to develop and maintain an operational governance plan consistent with Space
Florida's statewide strategic plan. Each spaceport must submit its plan annually to Space Florida. The bill provides
that these operational governance plans are not subject to approval by Space Florida. (Section 4)

The bill also requires each spaceport to maintain an updated list of spaceport site readiness development projects
consistent with its operational governance plan and with Space Florida's spaceport master plan. The bill specifies
that the projects to be included on this list include, but are not limited to, utility and commodity supply extension,
transportation infrastructure expansion, environmental reviews, and similar activities that, if completed, will
support the future expansion of spaceport operations and related space and hypersonic industry activities, such as
payload processing, manufacturing, and testing. Each spaceport must submit its project list annually to Space
Florida. (Section 4)

The bill requires Space Florida, in coordination with the Department of Transportation (DOT), metropolitan
planning organizations, and local governments, to enhance and promote the development and use of quintimodal
transportation hubs in this state. The bill defines a quintimodal transportation hub as a spaceport territory within
which interconnected transportation facilities are available to move people or property by means of road, railroad,
airport, seaport, and spaceport facilities. (Sections 2 and 3)

The bill updates cross references to conform to the provisions of the bill. (Sections 5, 6, 7)

The bill is effective July 1, 2026. (Section 8)

FISCAL OR ECONOMIC IMPACT:

STATE GOVERNMENT:
The bill creates new responsibilities and requirements for Florida’s spaceports and Space Florida. The costs of the
reporting, planning, and coordinating requirements provided in the bill will be absorbed within the existing
resources of Florida’s spaceports and Space Florida.

LOCAL GOVERNMENT:
The bill creates new responsibilities and requirements for spaceports which are controlled by local airport
authorities. The costs of the reporting, planning, and coordinating requirements provided in the bill will be
absorbed within the existing resources of those spaceports.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Space Florida

The Legislature passed the Space Florida Act in 2006,2 which consolidated Florida’s three existing space entities –
Florida Space Authority, Florida Space Research Institute, and Florida Aerospace Finance Corporation – into a
single entity called Space Florida.3 Space Florida is established as an independent special district, a body politic and
corporate, and a subdivision of the state.4 Space Florida is subject to the provisions of the Uniform Special District
Accountability Act, which governs issues like operations, financial reporting, taxation, assessments, elections,
compliance with general law, and comprehensive planning.5

2 Ch. 2006-60, Laws of Fla.
3 See ss. 331.301, F.S., through 331.371, F.S.
4 S. 331.302(1), F.S.
5 S. 331.302(5), F.S.

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Space Florida’s objectives include supporting the growth and development of a sustainable and world-leading
aerospace industry in Florida.6 Space Florida acts as Florida’s point of contact for state aerospace-related activities
with federal agencies, the military, state agencies, businesses, and the private sector.7 Space Florida is authorized
to purchase or construct facilities, set rates, fees, and charges for the use of facilities, undertake joint financing with
municipalities or private sector entities, and execute contracts with persons or spaceport users to facilitate the
financing, construction, leasing, or sale of any project.8

Powers and Duties of Space Florida
Florida law provides certain powers to Space Florida, including, but not limited to:9
 Using a corporate seal;
 Using patents, copyrights, and trademarks;
 Lending and investing money;
 Acquiring certain properties;
 Executing contracts;
 Issuing revenue bonds;
 Making expenditures for entertainment and travel expenses and business clients, guests, and other
authorized persons; and
 Fixing and collecting fees, loan payments, rental payments, and other charges in connection with financing
agreements.

Florida law also gives Space Florida certain duties, including, but not limited to, creating a business plan, entering
into agreements and cooperating with other state agencies, and consulting with appropriate federal agencies.10
Specifically, Space Florida is required to:
 Enter into agreements with the Department of Education, DOT, the Department of Commerce, and
CareerSource Florida.11
 In cooperation with the Department of Commerce, collaborate to develop a plan to retain, expand, attract,
and create aerospace industry entities, public or private, which results in the creation of high-value-added
businesses and jobs in Florida.12
 Develop, in cooperation with the Department of Commerce, a plan to provide financing assistance to
aerospace businesses.13
 Carry out its responsibilities for spaceport operations by:14
o Seeking federal support and developing partnerships to renew and upgrade the infrastructure and
technologies at the Cape Canaveral Air Force Station, the John F. Kennedy Space Center, and the
Eastern Range.
o Supporting federal efforts to clarify roles and responsibilities of federal agencies in an effort to
streamline access for commercial launch users.
o Pursuing the development of commercial spaceports in the state in partnership with counties or
municipalities, the Federal Government, or private entities.
o Promoting and facilitating launch activity within the state by supporting and assisting the efforts of
commercial launch operators to obtain authorization from federal agencies for launching from
Florida.
o Consulting, as necessary, with the appropriate federal, state, and local authorities, including the
National Aeronautics and Space Administration, Federal Aviation Administration, Department of

6 S. 331.302(1), F.S.
7 S. 331.3011(3), F.S.
8 S. 331.305, F.S.
9 Id.
10 S. 331.3051, F.S.
11 S. 331.3051(2), F.S.
12 S. 331.3051(3), F.S.
13 S. 331.3051(6), F.S.
14 S. 331.3051(7), F.S.

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Defense, DOT, Florida National Guard, and industry on establishing and operating spaceport
infrastructure and facilities in the state.

Board of Directors
The Space Florida board of directors is comprised of nine voting members and three ex officio, nonvoting
members. The governor (or designee of the governor) serves ex officio as the chair and a voting member of the
board and appoints five additional voting board members with experience in the aerospace industry, bond finance,
a relevant academic field, or other specified airport or aircraft operations. The remainder of the voting board
members consists of the Secretary of Transportation, one member appointed by the President of the Senate, and
one member appointed by the Speaker of the House of Representatives.

The governor selects the three ex officio, nonvoting members of the board, which consist of a representative of the
Jacksonville Aviation Authority, a representative of the Titusville-Cocoa Airport Authority, and an employee or
official of a port district or port authority.15

Public Works Projects

Chapter 255, F.S., provides the procurement process for public construction works. A public works project is an
activity that is paid for with any state-appropriated funds and involves the construction, maintenance, repair,
renovation, remodeling, or improvement of a building, road, street, sewer, storm drain, water system, site
development, irrigation system, reclamation project, gas or electrical distribution system, gas or electrical
substation, or other facility, project, or portion thereof owned in whole or in part by any political subdivision.16
Section 255.20, F.S., requires governmental entities to competitively award each project that is estimated to cost
more than $300,000 to an appropriately licensed contractor. For electrical work, a governmental entity must
competitively bid a project that is estimated to cost more than $75,000.17

The term “competitively award” means to award contracts based on the submission of sealed bids, proposals
submitted in response to a request for proposal, proposals submitted in response to a request for qualifications, or
proposals submitted for competitive negotiation.18

Except as required by federal or state law, the state or any political subdivision19 that contracts for a public works
project may not:20
 Prevent a certified, licensed, or registered contractor, subcontractor, or material supplier or carrier, from
participating in the bidding process based on the geographic location of the headquarters or offices of the
party, unless the local government is the sole source of funding for the project;
 Require a contractor, subcontractor, or material supplier or carrier engaged in the project to:
o Pay employees a predetermined amount of wages or prescribe any wage rate;
o Provide employees a specified type, amount, or rate of employee benefits;
o Control, limit, or expand staffing; or
o Recruit, train, or hire employees from a designated, restricted, or single source.
 Prohibit any contractor, subcontractor, or material supplier or carrier from submitting a bid on the project
if such individual is able to perform the work described and is qualified, licensed, or certified as required by
state law.

15 S. 331.3081, F.S.
16 S. 255.0992(1)(b), F.S.
17 S. 255.20(1), F.S.
18 S. 255.20(1), F.S.
19 “Political subdivision” means a separate agency or unit of local government created or established by law or ordinance and

the officers thereof. The term includes, but is not limited to, a county; a city, town, or other municipality; or a department,
commission, authority, school district, taxing district, water management district, board, public corporation, institution of
higher education, or other public agency or body thereof authorized to expend public funds for construction, maintenance,
repair, or improvement of public works. See s. 255.0992(1)(a), F.S.
20 S. 255.0992, F.S.

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Spaceports in Florida
Under Florida law, a spaceport is defined as any area of land or water developed by Space Florida and intended for
public use or for the launching, takeoff, and landing of spacecraft and aircraft, including any appurtenant areas
which are used or intended for public use, for spaceport buildings, or for other spaceport facilities, spaceport
projects, or rights-of-way.21 Florida law designates certain real property within the state as “spaceport territory,”22
including Cape Canaveral Spaceport in Brevard County, Cecil Spaceport in Duval County, Eglin Air Force Base in
Okaloosa County, Cape San Blas in Gulf County, Space Coast Regional Airport and Spaceport in Brevard County,
Homestead Air Reserve Base in Miami-Dade County, and Tyndall Air Force Base in Bay County.23

The Federal Aviation Administration (FAA) is responsible for licensing launch and reentry operations at
commercial spaceports.24 An FAA license is not required for space activities that the federal government carries out
for its own purposes, such as some NASA or U.S. Department of Defense launches.25 Currently, three Florida
spaceports are licensed by the FAA. The Cape Canaveral Spaceport is licensed by the FAA for vertical and
horizontal launch and for reentry operations.26 Cecil Spaceport, operated by the Jacksonville Aviation Authority,
and Space Coast Spaceport, operated by the Titusville-Cocoa Airport Authority, are licensed by the FAA for
horizontal launch operations.27

Spaceport Planning

Space Florida must develop a spaceport master plan for expansion and modernization of space transportation
facilities within spaceport territories. The plan must contain recommended projects to meet current and future
commercial, national, and state space transportation requirements. Further, the plan must identify appropriate
funding levels and include recommendations on appropriate sources of revenue that may be developed to
contribute to the State Transportation Trust Fund.

Space Florida must submit the spaceport master plan to any appropriate metropolitan planning organization for
review of intermodal impacts and to DOT for inclusion in its five-year work program of qualifying aerospace
discretionary capacity improvement projects. Subject to availability of appropriated funds, DOT may participate in
the capital cost of such projects.

Quintimodal Transportation Hubs
Brevard County hosts the world’s only quintimodal transportation hub, providing access to five modes of
transportation: space, air, rail, sea, and road.28

21 S. 331.303(17), F.S.
22 S. 331.304, F.S.
23 Space Florida, Spaceport System Territory, https://www.spaceflorida.gov/spaceport-system-territory (last visited Feb. 19,

2026).
24 U.S. Department of Transportation, Federal Aviation Administration, Commercial Space Transportation Activities,

https://www.faa.gov/newsroom/commercial-space-transportation-activities (last visited Feb. 19, 2026).
25 Id.
26 U.S. Department of Transportation, Federal Aviation Administration, Spaceports by State,

https://www.faa.gov/space/spaceports_by_state#fl_sflc (last visited Feb. 19, 2026).
27 Id.
28 NASA, Partnerships, Partnering with Kennedy Space Center, https://public.ksc.nasa.gov/partnerships/partnering-with-

ksc/benefits-of-partnership/five-modes-of-transportation/ (last visited Feb. 19, 2026).
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CS/CS/HB 1177
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Ways & Means Committee 18 Y, 1 N, As CS 2/10/2026 Aldridge Berg

THE CHANGES ADOPTED BY THE  Revised sales tax exemption language for clarity;
COMMITTEE:  Provided that authority over operational oversight, management, and
day-to-day administration of each spaceport in Florida is vested in the
spaceport’s director or commander;
 Required each spaceport to develop and maintain an operational
governance plan consistent with Space Florida’s statewide strategic
plan;
 Required each spaceport to maintain an updated list of spaceport site
readiness development projects and specifies the types of projects to
be included on the list;
 Provided that powers and duties specified for spaceports under new
section do not apply to federal property; and
 Defined the term “quintimodal transportation hub” and required Space
Florida to enhance and promote development and use of such hubs in
Florida.
Transportation & Economic 13 Y, 0 N, As CS 2/16/2026 Davis McAuliffe
Development Budget
Subcommittee
THE CHANGES ADOPTED BY THE  Removed the language that certain property being used by a private
COMMITTEE: lessee pursuant to a project authorized by Space Florida may qualify for
a property tax exemption.
 Removed the language that creates a sales tax exemption for certain
machinery and equipment owned by Space Florida and leased pursuant
to a project authorized by Space Florida.
Commerce Committee Hamon Rubottom

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/CS/HB 1177 2026

1 A bill to be entitled
2 An act relating to spaceport operations and Space
3 Florida; amending s. 331.302, F.S.; providing that
4 Space Florida is not an agency and is not subject to
5 certain bidding and contract procedures under certain
6 conditions; amending s. 331.303, F.S.; defining the
7 terms "quintimodal transportation hub" and "spaceport
8 director or commander"; amending s. 331.3051, F.S.;
9 requiring Space Florida to enhance and promote the
10 development and use of quintimodal transportation hubs
11 in this state; creating s. 331.3052, F.S.; providing
12 powers and duties of spaceport operators; providing
13 applicability and construction; amending ss. 330.41,
14 331.310, and 692.201, F.S.; conforming cross-
15 references; providing an effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Subsection (4) of section 331.302, Florida
20 Statutes, is amended to read:
21 331.302 Space Florida; creation; purpose.—
22 (4)(a) Space Florida is not an agency as defined in ss.
23 216.011 and 287.012.
24 (b) Space Florida is not an agency as defined in s.
25 287.055(2)(b) and is not subject to s. 255.20 when it purchases

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26 professional services or construction services, or both, using
27 nonappropriated state funds. Space Florida must attest in
28 writing that such funds are nonappropriated.
29 Section 2. Subsections (15) through (17) and (18) through
30 (21) of section 331.303, Florida Statutes, are renumbered as
31 subsections (16) through (18) and (20) through (23),
32 respectively, and new subsections (15) and (19) are added to
33 that section to read:
34 331.303 Definitions.—
35 (15) "Quintimodal transportation hub" means a spaceport
36 territory within which interconnected transportation facilities
37 are available to move people or property by means of road,
38 railroad, airport, seaport, and spaceport facilities.
39 (19) "Spaceport director or commander" means the
40 individual designated by the governing body, agency, or military
41 authority of a spaceport territory to administer the operations,
42 maintenance, safety, and local agreements of that facility.
43 Section 3. Subsections (16) and (17) of section 331.3051,
44 Florida Statutes, are renumbered as subsections (17) and (18),
45 respectively, and a new subsection (16) is added to that section
46 to read:
47 331.3051 Duties of Space Florida.—Space Florida shall:
48 (16) In coordination with the Department of
49 Transportation, metropolitan planning organizations, and local
50 governments, enhance and promote the development and use of

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51 quintimodal transportation hubs in this state.
52 Section 4. Section 331.3052, Florida Statutes, is created
53 to read:
54 331.3052 Powers and duties of spaceport operators.—
55 (1) Notwithstanding any other provision of this part,
56 authority over the operational oversight, management, and day-
57 to-day administration of each spaceport shall be vested in the
58 spaceport director or commander for that facility.
59 (2) Space Florida shall be responsible for statewide
60 strategic planning, financing, economic development, and
61 intergovernmental coordination, but may not exercise direct
62 control over local operational decisions unless:
63 (a) Specifically requested in writing by the spaceport
64 director or commander; or
65 (b) Required to comply with applicable federal law or
66 regulation.
67 (3) Each spaceport shall develop and maintain an
68 operational governance plan consistent with Space Florida's
69 statewide strategic plan. Such plan must be submitted annually
70 to Space Florida, but is not subject to approval by Space
71 Florida.
72 (4) Each spaceport shall maintain an updated list of
73 spaceport site readiness development projects consistent with
74 its operational governance plan and with Space Florida's
75 spaceport master plan developed under s. 331.360. Such projects

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76 include, but are not limited to, utility and commodity supply
77 extension, transportation infrastructure expansion,
78 environmental reviews, and similar activities that, if
79 completed, will support the future expansion of spaceport
80 operations and related space and hypersonic industry activities
81 including, but not limited to, payload processing, system
82 manufacturing, and testing. Such list must be submitted annually
83 to Space Florida.
84 (5) This section does not diminish Space Florida's
85 authority to finance, lease, or own spaceport facilities or to
86 coordinate economic development initiatives across multiple
87 spaceport territories.
88 (6) The powers and duties provided in this section do not
89 apply to federal property.
90 Section 5. Paragraph (b) of subsection (2) of section
91 330.41, Florida Statutes, is amended to read:
92 330.41 Unmanned Aircraft Systems Act.—
93 (2) DEFINITIONS.—As used in this act, the term:
94 (b) "Critical infrastructure facility" means any of the
95 following, if completely enclosed by a fence or other physical
96 barrier that is obviously designed to exclude intruders, or if
97 clearly marked with a sign or signs which indicate that entry is
98 forbidden and which are posted on the property in a manner
99 reasonably likely to come to the attention of intruders:
100 1. A power generation or transmission facility,

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101 substation, switching station, or electrical control center.
102 2. A chemical or rubber manufacturing or storage facility.
103 3. A water intake structure, water treatment facility,
104 wastewater treatment plant, or pump station.
105 4. A mining facility.
106 5. A natural gas or compressed gas compressor station,
107 storage facility, or natural gas or compressed gas pipeline.
108 6. A liquid natural gas or propane gas terminal or storage
109 facility.
110 7. Any portion of an aboveground oil or gas pipeline.
111 8. A refinery.
112 9. A gas processing plant, including a plant used in the
113 processing, treatment, or fractionation of natural gas.
114 10. A wireless or wired communications facility, including
115 the tower, antennas, support structures, and all associated
116 ground-based equipment.
117 11. A seaport as listed in s. 311.09(1), which need not be
118 completely enclosed by a fence or other physical barrier and
119 need not be marked with a sign or signs indicating that entry is
120 forbidden.
121 12. An inland port or other facility or group of
122 facilities serving as a point of intermodal transfer of freight
123 in a specific area physically separated from a seaport.
124 13. An airport as defined in s. 330.27.
125 14. A spaceport territory as defined in s. 331.303 s.

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126 331.303(19).
127 15. A military installation as defined in 10 U.S.C. s.
128 2801(c)(4) and an armory as defined in s. 250.01.
129 16. A dam as defined in s. 373.403(1) or other structures,
130 such as locks, floodgates, or dikes, which are designed to
131 maintain or control the level of navigable waterways.
132 17. A state correctional institution as defined in s.
133 944.02 or a contractor-operated correctional facility authorized
134 under chapter 957.
135 18. A secure detention center or facility as defined in s.
136 985.03, or a moderate-risk residential facility, a high-risk
137 residential facility, or a maximum-risk residential facility as
138 those terms are described in s. 985.03(44).
139 19. A county detention facility as defined in s. 951.23.
140 20. A critical infrastructure facility as defined in s.
141 692.201.
142 Section 6. Paragraph (e) of subsection (2) of section
143 331.310, Florida Statutes, is amended to read:
144 331.310 Powers and duties of the board of directors.—
145 (2) The board of directors shall:
146 (e) Prepare an annual report of operations as a supplement
147 to the annual report required under s. 331.3051(18) s.
148 331.3051(17). The report must include, but not be limited to, a
149 balance sheet, an income statement, a statement of changes in
150 financial position, a reconciliation of changes in equity

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151 accounts, a summary of significant accounting principles, the
152 auditor's report, a summary of the status of existing and
153 proposed bonding projects, comments from management about the
154 year's business, and prospects for the next year.
155 Section 7. Paragraph (i) of subsection (2) of section
156 692.201, Florida Statutes, is amended to read:
157 692.201 Definitions.—As used in this part, the term:
158 (2) "Critical infrastructure facility" means any of the
159 following, if it employs measures such as fences, barriers, or
160 guard posts that are designed to exclude unauthorized persons:
161 (i) A spaceport territory as defined in s. 331.303 s.
162 331.303(19).
163 Section 8. This act shall take effect July 1, 2026.

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Commerce Committee

CS/CS/HB 1177 by Rep. Sirois
Spaceport Operations and Space Florida

AMENDMENT SUMMARY
February 26, 2026

Amendment #439121 by Rep. Sirois (line 19):
• Defines the term “strategic spaceport hub” and requires any seaport located
within 5 miles of a strategic spaceport hub to coordinate with Space Florida
before changing its strategic plan.
• Adds a provision requiring Space Florida to employ a full-time business
development director to foster the growth and development of spaceport
activities including, but not limited to, horizontal launch capability, advanced air
mobility, and unmanned aerial vehicles, in certain designated spaceport
territories in Santa Rosa, Okaloosa, Gulf, Walton, Duval, Miami-Dade, and Bay
Counties.
• Adds a provision revising the membership of Space Florida’s board of directors.
• Removes provisions defining “quintimodal transportation hub” and “spaceport
operations commander.”
• Removes provision requiring Space Florida to enhance and promote the
development and use of quintimodal transportation hubs.
• Removes provision addressing powers and duties of spaceport operators and
Space Florida with respect to the operation, administration, planning, and
governance of spaceports.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1177 (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: Commerce Committee
2 Representative Sirois offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 19-162 and insert:
6 Section 1. Subsection (4) is added to section 311.14,
7 Florida Statutes, to read:
8 311.14 Seaport planning.—
9 (4)(a) For purposes of this subsection, the term
10 "strategic spaceport hub" means spaceport territory located
11 within 5 miles of a seaport listed in s. 311.09(1) that is used
12 for deepwater commercial navigation.
13 (b) Prior to making any change to its strategic plan, the
14 governing board of a seaport located within 5 miles of a
15 strategic spaceport hub must coordinate with Space Florida to

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1177 (2026)
Amendment No.

16 ensure that the change does not conflict with Space Florida's
17 business plan created pursuant to s. 331.3051.
18 Section 2. Subsection (4) of section 331.302, Florida
19 Statutes, is amended to read:
20 331.302 Space Florida; creation; purpose.—
21 (4)(a) Space Florida is not an agency as defined in ss.
22 216.011 and 287.012.
23 (b) Space Florida is not an agency as defined in s.
24 287.055(2)(b) and is not subject to s. 255.20 when it purchases
25 professional services or construction services, or both, using
26 nonappropriated state funds. Space Florida must attest in
27 writing that such funds are nonappropriated.
28 Section 3. Subsection (1) of section 331.3051, Florida
29 Statutes, is amended to read:
30 331.3051 Duties of Space Florida.—Space Florida must
31 shall:
32 (1)(a) Create a business plan to foster the growth and
33 development of the aerospace industry. The business plan must
34 address business development, finance, spaceport operations,
35 research and development, workforce development, and education.
36 The business plan must be revised when determined as necessary
37 by the board.
38 (b) Employ a full-time business development director for
39 the spaceport territories identified in s. 331.304(2), (3), (6),
40 and (7), whose primary focus must be to foster the growth and
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1177 (2026)
Amendment No.

41 development of spaceport activities including, but not limited
42 to, horizontal launch capability, advanced air mobility, and
43 unmanned aerial vehicles.
44 Section 4. Paragraph (e) of subsection (1) of section
45 331.3081, Florida Statutes, is redesignated as paragraph (f) and
46 amended, and paragraph (e) is added to that subsection, to read:
47 331.3081 Board of directors.—
48 (1) Space Florida shall be governed by an independent
49 board of directors that consists of the Governor, who shall
50 serve ex officio, or who may appoint a designee to serve, as the
51 chair and a voting member of the board, and the following
52 appointed members:
53 (e) A representative of the Jacksonville Aviation
54 Authority, appointed by the Governor.
55 (f) A representative of each of the following entities,
56 who shall serve as an ex officio, nonvoting member of the board,
57 appointed by the Governor:
58 1. The Jacksonville Aviation Authority.
59 2. The Titusville-Cocoa Airport Authority.
60 2.3. An employee or official of a port district or port
61 authority as defined in s. 315.02(2).
62
63 -----------------------------------------------------
64 T I T L E A M E N D M E N T
65 Remove lines 3-15 and insert:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1177 (2026)
Amendment No.

66 Florida; amending s. 314.14, F.S.; providing a
67 definition for the term "strategic spaceport hub";
68 requiring the governing board of certain seaports to
69 coordinate with Space Florida for specified purposes;
70 amending s. 331.302, F.S.; providing that Space
71 Florida is not an agency and is not subject to certain
72 bidding and contract procedures under certain
73 conditions; amending s. 331.3051, F.S.; requiring
74 Space Florida to employ a full-time business
75 development director for specified purposes; amending
76 s. 331.3081, F.S.; revising membership on the Space
77 Florida board of directors; providing an effective
78 date.

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CS/CS/HB 1221
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/CS/HB 1221 COMPANION BILL: CS/SB 1452 (Truenow)
TITLE: Department of Financial Services LINKED BILLS: None
SPONSOR(S): LaMarca RELATED BILLS: None
Committee References
Insurance & Banking State Administration Budget Commerce
15 Y, 0 N, As CS  11 Y, 0 N, As CS 

SUMMARY
Effect of the Bill:
The bill enacts comprehensive reforms across multiple Department of Financial Services (“DFS”) administered
programs and statutes. The bill conforms statute to the new state accounting system known as the Florida Planning
and Ledger Management system. The bill revises eligibility standards, qualifying mitigation measures, and
application procedures and statuses for the My Florida Safe Home Program. The bill authorizes DFS to
independently procure insurance contracts, restructure coordinating council operations, and enter into multiyear
software licensing agreements. It extends the deadline for health care providers to challenge carrier payment
adjustments from 45 days to 60 days and requires public adjusters to respond to informational claim requests
within 14 days. The bill establishes new disqualification standards and enforcement penalties for DFS licensees,
updates criminal background checks for licensees, and creates a transition framework for individuals transferring
licenses into Florida. Additionally, the bill modernizes the Florida Disposition of Unclaimed Property Act by
renaming it the “Abandoned Personal Property Act” and by substantially revising definitions, holder duties, notice,
reporting and verification requirements, dormancy and unclaimed triggers, the Unclaimed Property State Fund,
claimant representative and purchase agreement procedures, and state transparency and notification obligations.

Fiscal or Economic Impact:
The bill may have an indeterminate, minimal negative fiscal impact to the state.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
Florida Planning and Ledger Management (“Florida PALM”)
The bill amends statutory references to Florida’s current accounting system, the Florida Accounting Information
Resource (“FLAIR”) system, to reflect the new state accounting system, the Florida Planning and Ledger
Management (“Florida PALM”) system. (Sections 1, 8, 9, 11, 12, 13, 84, 85)

Legacy Firefighters
The bill allows public officials to appoint, employ, promote, and advocate for a relative to be a firefighter as long as
it is a part of a competitive process in a collective bargaining agreement. (Section 4)

Prepaid Software Licenses
The bill authorizes the Department of Financial Services (“DFS “) to enter into multiyear, prepaid software
licensing agreements. (Section 5)

Interest Payments
The bill clarifies that when interest accrues on a state invoice and the original appropriation has expired or been
fully expended, DFS may satisfy the interest obligation using a similar appropriation category. (Section 5)

STORAGE NAME: h1221d.COM
DATE: 2/24/2026
1
CS/CS/HB 1221

My Florida Safe Home Program
The bill amends the My Safe Florida Home Program (“MSFHP”) in the following ways:
• Replaces the term “townhome” with “attached residential property not exceeding three stories” and makes
these properties eligible for all mitigation improvements grants offered by MSFHP, as opposed to only
opening protection improvement.
• Clarifies that the replacement of the roof covering is a mitigation improvement eligible for a MSFHP grant,
when the applicant installs secondary water resistance on the roof.
• Provides that an applicant may additionally submit a second hurricane mitigation inspection application
for the same home if:
o the first submission was denied or withdrawn due to material errors or omissions; or
o more than 24 months have passed since the applicant received a hurricane mitigation inspection
and the applicant has not received a grant payment through the MSFHP for the inspection.
• Requires a home’s age to be verified through the county property appraiser’s website, instead of the
building permit application for initial construction of the home.
• Provides that DFS may accept a certification directly from an applicant attesting to his or her age if the
applicant provides the certification in a signed or electronically verified statement made under penalty of
perjury.
• Removes the option for an applicant to request a six-month extension to finalize construction and receive a
final inspection, but expands the time limit to do so from 12 months to 18 months after grant application
approval.
• Requires DFS to notify a MSFHP applicant at least 5 business days before an application is deemed
abandoned. If the applicant replies to the notice and provides good cause for why the application should
not be deemed abandoned, DFS may:
o determine the application is not abandoned; or
o allow the application to submit a subsequent grant application. (Section 6)

Charts of Account
The bill removes outdated requirements for the Chief Financial Officer (“CFO”) to recommend a uniform Charts of
Account to the Legislature. (Section 7)

Records Requests
The bill provides that a public records request or subpoena for a document or accounting record from the state
agency information system must be made to the state entity that the document or accounting record was recorded
for, rather than to the system itself. (Section 8)

Florida Coordinating Council Structure
The bill amends the coordinating council by including the executive director for the Department of Revenue on the
council, and removing the nonvoting members selected by the Florida Association of state agency administrative
services and replacing them with nonvoting members selected by the council. The bill also adjusts the council’s
duties to ensure the Florida Financial Management Information System remains aligned across participating
entities. (Section 10)

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2
CS/CS/HB 1221
Insurance Contracts
The bill authorizes DFS to independently procure insurance brokerage services and enter into insurance contracts.
(Section 14 and 15)

Workers’ Compensation Claim Adjudication Disputes
The bill extends the timeframe to challenge workers’ compensation carrier’s payment adjustment from 45 days to
60 days. The petitioner must serve a copy of the petition challenging the adjustment by USPS Certified Mail or a
common carrier with similar tracking capabilities to workers’ compensation carrier and all affected parties listed
in the notice of disallowance or adjustment. The bill also revises panel recommendation submissions for the
workers’ compensation health care delivery system to be delivered on or before January 15, 2031, and take place
every 5 years instead of biannually. (Section 16)

Disqualification of Licensure by Board of Funeral, Cemetery, and Consumer Services
The bill provides that any applicant applying for a license issued by the Division and the Board of Funeral,
Cemetery, and Consumer Services (“Board”) under the Department of Financial Services that has been found guilty
or has pled no contest to any of the following offenses, regardless of ruling, is permanently barred from licensure:
• A felony in the 1st degree.
• A felony involving conduct prohibited under:
o the Florida Funeral, Cemetery, and Consumer Services Act (Ch. 497, F.S.);
o Kidnapping, Custody Offenses, and Human Trafficking (Ch. 787, F.S.);
o Sexual Battery (Ch. 794, F.S.);
o Prostitution (Ch. 796, F.S.);
o Lewdness and Indecent Exposure (Ch. 800, F.S.);
o Abuse, Neglect, and Exploitation of Elderly Person and Disabled Adults (Ch. 825, F.S.);
o Abuse of Children (Ch. 827, F.S.); and
o Obscenity (Ch. 847, F.S.).
• A felony involving moral turpitude.1 (Section 17)

The bill also provides that any applicant who has been found guilty of, or has pled guilty or no contest to any of the
following offenses, regardless of ruling, is subject to the following disqualifying periods:
• 10 years for any felony which the permanent bar does not apply 2; or
• 5 years for all misdemeanors directly involving conduct prohibited under the Florida Funeral, Cemetery,
and Consumer Services Act. (Section 17)

The bill requires the Board to adopt rules establishing additional disqualifying periods for applicants who have
committed multiple criminal offenses and may provide additional factors for disqualification reasonably related to
the applicant’s criminal history. The Board must also adopt rules establishing mitigating and aggravating factors.
Mitigation factors may not reduce any disqualifying period to less than 5 years and may not reduce the 5-year
period for misdemeanors involving conduct prohibited under the Florida Funeral, Cemetery, and Consumer
Services Act. The Board has discretion whether to grant or deny any exemption and decisions are subject to Ch.
120. (Section 17)

The bill establishes that any applicant for licensure by the Board who has been pardoned or restored their civil
rights with respect to their conviction is not barred or disqualified from licensure. However, the Board is not
required to issue licensure to an applicant because they have been pardoned or had their civil rights restored.
(Section 17)

1 Moral turpitude describes wicked, deviant behavior constituting an immoral, unethical, or unjust departure from ordinary

social standards such that it would shock a community. Merriam-Webster, https://www.merriam-
webster.com/legal/moral%20turpitude (last visited Jan. 31, 2026).
2 An applicant who has completed at least half of the disqualifying period may apply for a probationary license for the

remainder of the disqualifying period if the applicant was found not guilty or pled no contest to the offense. (Section 7)
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3
CS/CS/HB 1221
The bill establishes that the Board may grant an exemption from disqualification of licensure if:
• the applicant has paid in full any fee, fine, fund, lien, civil judgement, restitution, or cost of prosecution as
part of judgement and sentence for any disqualifying offense; and
• at least 2 years have elapsed since the applicant completed or has been lawfully released from confinement,
supervision, or any nonmonetary condition imposed by the court for a disqualifying offense.

In order to receive an exemption, an applicant must clearly and convincingly demonstrate with the following
evidence that they would not pose a risk to persons or property if licensed:
• facts and circumstances surrounding the disqualifying offense;
• the time that has elapsed since the offense;
• the nature of the offense and the harm caused to the victim;
• the applicant’s history before and after the offense; and
• any other evidence or circumstances indicating that the applicant will not present a danger if licensed or
certified. (Section 17)

The bill provides that the disqualification periods do not apply retroactively for new and renewal applications for
licensure if the applicant had an active license as of July 1, 2026, and applicable criminal history was considered by
the Board previously. (Section 17)

The bill provides that if any applicant under the Florida Funeral, Cemetery, and Consumer Services Act has been
convicted or found guilty of, or entered into a no contest plea, any crime in any jurisdiction, the application may not
be deemed complete until the applicant provided certified copies of court records evidencing conviction, finding, or
plea. Crimes that must be disclosed in such manner include:
• any felony, no matter when committed;
• any misdemeanor, no matter when committed, that was directly related to the practice or activities
regulated by the Florida Funeral, Cemetery, and Consumer Services Act; and
• any other misdemeanors not already disclosed which were committed within the 5 years immediately
preceding application. (Section 18)

Insurance License Applicant Filing Fee
The bill removes “reinsurance intermediary” from the list of license types. As of July 1, 2023, DFS no longer issues
such licenses. Additionally, the bill expands the veteran license application filing fee exemption to include any
veteran honorably discharged from the United States Armed Forces, instead of only who veterans who were
honorably discharged within 24 months of filing their application. (Section 19)

Licensees Transitioning to Florida
The bill removes the requirement for applicants for licensure with DFS under the Florida Insurance Code to
provide verification of a home state license cancellation prior to being approved as a Florida resident license and
provides that an applicant must cancel their prior home state license within 30 days of receiving a license from
DFS. The bill removes the requirement for a letter clearance if an applicant was licensed in another state for
General Lines, Life, or Health and is transferring their license to Florida. (Sections 20, 23, 24, 25)

License Reexamination
The bill requires DFS to require a licensee or applicant for licensure under the Florida Insurance Code to retake a
licensure exam if the licensee or applicant commits an act that requires DFS to revoke, suspend, refuse to renew a
license, or deny any application, including cheating on a licensure exam or violating test center or exam
procedures. The bill authorizes, but does not require, DFS to require a licensee or applicant for licensure under the
Florida Insurance Code to retake a licensure exam if the licensee or applicant commits an act that authorizes DFS to
revoke, suspend, refuse to renew a license, or deny an application. (Sections 21 and 22)

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
CS/CS/HB 1221
Public Adjusters
The bill requires public adjusters to respond within 14 days of a consumer’s written or electronic request for claim
information, and keep record of such response. (Section 26)

Bail Bond Agent Licensing and Appointment
The bill removes the requirement for an insurer appointing a bail bond agent to submit a photo to DFS as part of
the bail bond application license, as their photo is already taken by the exam vendor who issues the licensing
badge. The bill also provides that the appointing insurer is to obtain all Bail Bond Appointment Forms and
necessary certifications of the agent, but is not required to submit them to DFS. (Sections 27 and 28)

Unclaimed Personal Property
The bill renames “Florida’s Disposition of Unclaimed Property Act” as “Florida’s Disposition of Abandoned
Personal Property”. (Section 29)

The bill clarifies custodial role of the state and emphasizes that property ownership rights remain with the owner
and may be exercised at any time by the owner while property is in custody of the state. (Section 82)

The bill renames “unclaimed property” as “abandoned property” throughout the act, and defines “abandoned
property” as property held by a holder for which all of the following are true:
• The apparent owner has shown no activity or indication of interest for the duration of the applicable
dormancy period.
• The holder has complied with the due diligence requirements, including the issuance of notice to apparent
owner, and has received no response or contact sufficient to demonstrate continued interest in the
property. (Section 30)

The bill also provides definitions for the following terms:
• “Abandoned Property Purchase Agreement” is defined as the form adopted by DFS which must be used,
without modification or amendment, by a claimant representative to purchase abandoned property from
an owner.
• “Abandoned Property Recovery Agreement” is defined as the form adopted by DFS which must be used,
without modification or amendment, by a claimant representative to obtain consent and authority to
recover abandoned property on behalf of a person.
• “Authorized Representative” is defined as a person or entity legally empowered to act on behalf of the
apparent owner or his estate, including but not limited to, an agent, a fiduciary, a personal representative, a
trustee, a legal heir, a guardian, or any other individual or entity authorized by law or agreement. (Section
30)

The bill significantly modifies the definition for the following terms:
• “Apparent owner” is amended to mean the person whose name appears on the records of the holder as the
owner of the abandoned property, but whose status as the true owner entitled to receive the property may
be subject to change due to the passage of time or changed in circumstances.
• “Claimant Representatives” is amended to require claimant representatives to gain authorization to file
claims on behalf of persons with DFS. The term does not include a person acting as a representative or
fiduciary capacity, whose representation is not contingent upon the discovery or location of abandoned
property, and the definition expressly excludes locators 3.
• “Holder” is amended to mean a person who is in the possession of property belonging to another or who
owes a debt or an obligation to another person, including, but not limited to, financial institutions,
insurance companies, corporations, partnerships, fiduciaries, and government agencies.

3 The bill defines locator a private individual or business that locates owners of abandoned property in exchange for a fee,

typically a percentage of the recovered property. Locators are not employees or agents of the state and are not registered with
DFS.
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5
CS/CS/HB 1221
• “Owner” is amended to mean the person entitled to receive or having a legal or equitable interest in the
abandoned property. An owner establishes his or her entitlement by filing a claim with DFS. (Section 30)

The bill establishes that all intangible property, including any income or increment minus any lawful charges, is
presumed abandoned if the property is held, issued, or owed by the holder’s business and the apparent owner or
authorized representative failed to demonstrate a continued interest for more than the applicable dormancy
period. (Section 31)

The bill establishes that the presumption that property is abandoned may be rebutted by the affirmative
demonstration of continued interest by the owner or an authorized representative, instead of just the owner.
(Section 31)

The bill provides that demonstrations of continued interest can also be communicated by authorized
representatives in the following forms:
• a record 4 to the holder or its agent concerning the property or the account in which the property is held;
• an oral communication concerning the property or the account in which the property is held if the holder
records and preserves evidence of the communication;
• presentment of a check or other instrument for payment of dividends, interest, or other distributions
related to the property;
• any account activity; and
• any deposits or withdrawals from the property or the account in which the property is held. (Section 31)

The bill also provides that routine, automatic transactions, deposits, withdrawals, or reinvestments previously
authorized by an apparent owner or authorized representative do not qualify as an affirmative demonstration of
continued interest. (Section 31)

The bill expressly provides that presumed abandoned property is subject to custody by DFS, so long as the holder
of the property has completed all statutorily required due diligence obligations without receiving any response or
claim from the apparent owner. (Section 32)

The bill expands what qualifies as an affirmative demonstration of continued interest for traveler’s checks and
money orders, checks, and bank deposits from just written communication with the holder to all types of
affirmative demonstrations authorized for intangible property. (Section 34, Section 36, and Section 37)

The bill revises dormancy triggers for stock, equity, and debt interests of business associations by reinstating
returned mail as a trigger to start a dormancy period. The bill also extends dormancy periods triggered by owner-
initiated activity from 3 years to 5 years. (Section 42)
The bill requires holders of property that do not send mail to apparent owners on an annual basis to send an email
within 3 years of the apparent owner’s last demonstration of continued interest. (Section 42)

The bill increases due diligence requirements for holders by requiring more detailed consumer disclosures. If a
property presumed abandoned is worth more than $50, holders must send written notice by first-class US mail or
by e-mail if elected by the apparent owner, at least 90 days, but no more than 180 days, prior to filing the report
required by DFS regarding presumed abandoned property. (Section 49)

The bill requires holders to send a second notice by certified mail to properties worth $1,000 or more at least 60
days prior to filing the report required by DFS. Additionally, the bill requires holders to certify that reports are
complete and that all due diligence requirements have been satisfied. (Section 49)

4 The bill defines a record as information that is captured or maintained in any format, including written, printed, electronic,

audio, visual, or other forms, and that can be made perceptible or understandable to a person, either directly or through
technological means, including assistive technologies.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
CS/CS/HB 1221
The bill provides that securities identified as non-freely transferable 5 or worthless are not reportable by holders.
(Section 49)

The bill revises DFS’ notice requirements following property transferring into DFS custody. The bill codifies that
DFS is required to maintain a publicly searchable electronic database and requires owners with property values at
$10 or more to be included in such database. Property valued under $10 remains recoverable from DFS, but are not
required to be on the electronic database. (Section 50)

The bill clarifies that firearms discovered in abandoned safe-deposit boxes must be delivered to law enforcement
agencies for proper handling or disposal instead of just disposal. The bill also provides that if a firearm is sold by a
law enforcement agency, the balance must be deposited into the State School Fund. (Section 51)

The bill also clarifies that if a will or trust instrument is included among the contents of an abandoned safe-deposit
box, DFS must supply a copy of the will or trust instrument upon the request of anyone who provides a certified
copy of a death certificate. (Section 51)

The bill creates provisions regarding the purchase of abandoned property agreements. The agreement must be
written, in at least 12-pt. font, and contain:
• a title of “Florida Abandoned Property Purchase Agreement”;
• the seller’s social security number or taxpayer identification number;
• the seller’s email address, mailing address, and telephone number;
• the name of the apparent owner as shown by DFS records;
• the name of the holder that remitted the property;
• the date of last contact;
• the purchaser’s email, address, and phone number;
• a statement acknowledging that the property is currently in DFS’ custody and that the seller can claim the
property directly from DFS on its electronically searchable website without being charged a fee;
• the property category;
• the nature and value of the property; and
• a manual signature and dating by the seller that has been notarized. (Section 79)

The bill requires that the purchase price of the property cannot be discounted by more than 30% at the time of sale
and that the amount of the purchase must be provided to the seller within 30 days of the execution of the
agreement. Additionally, the bill provides that the seller may cancel a purchase agreement without penalty or
obligation within 15 days after the agreement was executed. (Section 79)

The bill requires a copy of executed purchase agreements be filed with purchaser claims along with proof of
payment in full and other statutorily required documentation. The bill provides that if proof of payment is not
submitted, DFS may not approve the claim. (Section 79)

The bill revises registration requirements for claimant representatives. Representatives must be:
• a Florida licenses private investigator;
• a Florida certified public accountant; or
• a Florida licensed attorney who has registered with DFS. (Section 83)

The bill requires active claimant representatives to file and obtain payment on at least 10 claims per calendar year
following the date of initial registration. (Section 83)

5 The bill defines a non-freely transferable security as a security that cannot be delivered to the administrator by a custodian of

securities providing post-trading clearing and settlement services to financial markets or cannot be delivered because there is
no agent to effect transfer. The term includes worthless security.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
7
CS/CS/HB 1221
The bill provides conforming and technical changes. (Multiple Sections)

The bill is effective upon becoming law. (Section 89)

RULEMAKING:
The bill expands the Chief Financial Officer’s existing rulemaking authority for authorizing advanced payments to
include payments to prepay for multi-year software licenses. The bill also provides the Board of Funeral, Cemetery,
and Consumer Services with rulemaking authority to administer the criminal disqualifications for licenses issued
by the Board.

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
According to DFS, the bill allows the state to prepay for multi-year software licenses, which may result in a 10-20%
decrease in cost over a 3-year period. The bill also may minimally decrease revenues by extending insurance agent
application licensing fees to honorably discharged veterans of the United States Armed Forces beyond the current
24-month limit. Additionally, the bill may have an indeterminate fiscal impact on DFS’ Unclaimed Property
Program’s postage, mailing, and data-research costs due to implementation and facilitation of additional owner
notifications. 6

PRIVATE SECTOR:
The bill may have an indeterminate fiscal impact on holders of financial accounts and securities by requiring an
increase in due diligence and notification requirements.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
The Department of Financial Services
Effective January 2003, the Department of Insurance, Treasury, State Fire Marshal, and the Department of Banking
and Finance merged to form the Department of Financial Services (“DFS”). DFS consists of 12 divisions and several
specialized offices. 7 Additionally, DFS is responsible for administering several programs, including the My Safe
Florida Home Program, 8 My Safe Florida Condominium Pilot Program, 9 and the Florida PALM Project. 10 The
following divisions are housed within DFS: 11
• Accounting & Auditing;
• Administration;
• Consumer Services;
• Criminal Investigations;
• Funeral, Cemetery, and Consumer Services;
• Insurance Agent & Agency Services;
• Rehab & Liquidation;
• Risk Management;

6 DFS, 2026 Agency Analysis of HB 1221/SB 1452 (Jan. 28, 2026) pg. 13.
7 DFS, About the Agency, https://www.myfloridacfo.com/about/about-dfs? (last visited Jan. 30, 2026).
8 S. 215.5586, F.S.
9 S. 215.58871, F.S.
10 DFS, The Florida PALM Project, https://myfloridacfo.com/floridapalm/project-team (last visited Jan. 30, 2026).
11 DFS, supra note 7.

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CS/CS/HB 1221
• State Fire Marshal;
• Treasury;
• Unclaimed Property;
• Workers’ Compensation; and the
• Office of Insurance Consumer Advocate.

Florida Accounting Information Resource Subsystem (“FLAIR”)
In 1980, the Florida Legislature enacted the Florida Fiscal Accounting Management Information System Act to
standardize financial management and accounting practices for the state. 12 The State Automated Management
Accounting Subsystem (“SAMAS”) was developed from 1983 to 1986 and thereafter implemented by state agencies
to manage their financial accounting. 13

In 1997, SAMAS was renamed as the Florida Accounting Information Resource Subsystem (“FLAIR”). 14 FLAIR is a
mainframe, computer-based ledger accounting system utilized by the state to process financial transactions and
record accurate data. 15 DFS is the functional owner of FLAIR. 16 Within DFS, the Division of Information Systems
operates the CFO’s Data Center, which maintains FLAIR. All state agencies’ payrolls, expense processing,
retirement, public assistance, and reemployment compensations are processed and tracked through FLAIR.
Additionally, FLAIR is used to create the State’s Annual Comprehensive Financial Report. 17

Florida Planning and Ledger Management (“Florida PALM”)
In October 2013, DFS procured a study of FLAIR to assess whether to enhance or replace the FLAIR system. Based
on the consultant analysis completed in the study, the State was recommended to replace FLAIR and DFS’ Cash
Management System (“CMS”) 18 with a commercial, off-the-shelf Enterprise Resource Planning (“ERP”) solution. 19
As a result of the study, DFS created the Florida Planning, Accounting, and Ledger Management (“Florida PALM”)
project to replace FLAIR and components of the CMS with a cloud-hosted, ERP financial management solution.
Beginning in July 2021, a multi-year implementation plan known as the “CMS Wave” transitioned functions related
to the management of bank cash, participant-invested cash, and Treasury investments from the CMS to the Florida
PALM system. The complete update from FLAIR and CMS to the Florida PALM system has a current go-live date of
January 2027. 20

Charts of Account
The Charts of Account is a compilation of uniform data codes used for reporting governmental assets, liabilities,
equities, revenues, and expenditures to the CFO. 21 In 2011, the Legislature required the CFO to include new entities
in the Charts of Account, such as educational entities and higher education institutions, to establish uniform
reporting requirements. The CFO was required to conduct workshops with affected governmental entities to
gather reporting requirements and to issue a proposed Charts of Account by July 1, 2013. 22 The CFO submitted a
final report recommending a uniform Charts of Account to the Governor, the Senate President, and the Speaker of
the House; however, the Legislature did not adopt such recommendation.

12 Ch. 80-45, Laws of Fla.
13 Florida Auditor General, Florida Accounting Information Resource Subsystem (FLAIR), Microsoft Word - 2016-032 DFS

FLAIR.docx (last visited Feb. 23, 2026).
14 Ch. 97-286, Laws of Fla.
15 DFS, Florida Accounting Resource (FLAIR), https://flair.dbf.state.fl.us/ (last visited Feb. 23, 2026).
16 S. 215.94(2), F.S.
17 S. 216.102(3), F.S.
18 CMS allows state agencies to deposit funds directly to the Treasury bank account across hundreds of bank locations and

receive interest on account balances and operate small disbursement accounts with no service charges. DFS, Cash
Management, https://www.myfloridacfo.com/division/treasury/cash-management (last visited Feb. 23, 2026).
19 Florida Auditor General, supra note 13.
20 Id.
21 S. 215.89(2)(a), F.S.
22 Chapter 2011-44, Laws of Fla.

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Public Records
Article I, s. 24(a) of the State Constitution sets forth the state’s public policy regarding access to government
records. Under current law, every person retains the right to inspect or copy any public record of the legislative,
executive, and judicial branches of the state government. However, the Legislature may provide by general law for
an exemption of records from the public records requirements. 23 The general law must state with specificity the
public necessity supporting the exemption, and the exemption may be no broader than necessary to accomplish its
purpose. 24

As functional owner of the state accounting system, DFS is responsible for maintaining the system’s security and
safeguarding all data stored in or transmitted through it. However, each state agency remains responsible for the
content, accuracy, and integrity of the information it enters into the system. Because DFS houses and maintains the
centralized system, public records requests for data contained within it are currently directed to DFS, rather than
to the individual agencies that originally created and submitted the records. 25

The Division of Accounting and Auditing
The Chief Financial Officer, as the head of the Department of Financial Services, is tasked with making salary
payments to all state employees, retirement payments to the Florida Retirement System retirees statewide, and
payments to vendors who conduct business with the state The Division is the final stop in the state payment
process, ensuring public funds are appropriately spent. 26 Currently, the state is only allowed to purchase
subscriptions and perpetual software licenses each fiscal year. The state currently spends $55 million on software
licenses each year. 27

The Division of Insurance Agent and Agency Services
The Division of Insurance Agent and Agency Services licenses and investigates all insurance agents, agencies,
adjusters, and adjusting firms in Florida. The Division monitors 1.27 million actives licenses, processes more than
2.9 million appointment requests, reviews over 100,00 applications, and conducts over 3,000 investigations each
year. 28 The current process for transferring an out-of-state license relies on the approval and actions of the
previous state sending a paper letter indicating that the previous license has been canceled. 29

The Division of Funeral, Cemetery, and Consumer Services
The Division of Funeral, Cemetery, and Consumer Services (“Division”) establishes qualifications for professions
and occupations in the death care industry. These professions and occupations include, but are not limited to:
funeral directing, embalming, cremation, preneed sales, cemeteries, and monument sales.

The Division also ensures death care professionals maintain their qualifications through continuing education
courses and licensure renewal. It also oversees licensed establishments, facilities, and cemetery grounds by
conducting annual inspections of these entities. The Division ensures effective discipline for those licensees who
have violated the law. In performing these regulatory functions, the Division works closely with the Board of
Funeral, Cemetery, and Consumer Services. 30

The Board of the Division of Funeral, Cemetery, and Consumer Services (“Board”) consists of 9 members appointed
by Florida’s CFO and one designated member by the State Health Officer. The Board functions as the state authority
that licenses, regulates, and oversees the death care industry. The Board works with the Division to enforce laws

23 Art. I, s. 24, Fla. Const.
24 Id.
25 S. 215.93(5), F.S.
26 S. 215.422, F.S.
27 DFS, supra note 6, at pg. 13.
28 Id. at 2.
29 S. 626.292, F.S.
30 DFS, About the Division, Funeral, Cemetery, and Consumer Services, https://myfloridacfo.com/division/funeralcemetery

(last visited Feb. 1, 2026).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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and investigate consumer complaints. When violations occur, the Board helps ensure discipline, sanctions, and/or
corrective actions are administered. 31

Licensure by the Board of Funeral, Cemetery, and Consumer Services
The current statutory scheme does not rely on a list of automatic disqualifiers for applicants seeking licensure by
the Board of Funeral, Cemetery, and Consumer Services, but vests the Board with the discretion to assess criminal
history, character, integrity, and public safety risk created by extending licensure to applicants.

All applicants for licensure with the Board must disclose specified criminal history and submit fingerprints for
state and federal background checks. Required disclosures include:32
• Any felony or misdemeanor, regardless of when committed, that is directly or indirectly related to or
involving any aspect of funeral directing, embalming, preneed sales, cemetery operations, or other
activities regulated by the Florida Funeral, Cemetery, and Consumer Services Act;
• Any other felony committed within the 20 years preceding the application; and
• Any other misdemeanor committed within the 5 years preceding the application.

Disclosure is required regardless of whether adjudication was withheld or the record is sealed. Failure to disclose
required criminal history qualifies as independent grounds for licensure denial and may itself constitute criminal
or disciplinary conduct. 33

The Board retains the authority to withhold licensure to an applicant who has a criminal record that is required to
be disclosed unless the applicant affirmatively demonstrated that issuance of the license would not create a danger
to the public. Current law establishes that public safety is the controlling standard for the decision to approve or
deny licensure, not the existence of a criminal record. 34

The Board may deny licensure where disclosed criminal conduct:
• demonstrates dishonesty, fraud, or financial exploitation;
• is substantially related to regulated funeral or cemetery activities; or
• reflects conduct inconsistent with public trust or consumer protection. 35

Current law provides that applicants providing false information in connection with a license application or
attempting to obtain licensure through misrepresentation is a criminal offense and is disqualifying conduct. 36 The
Board may refuse to rule on an initial application if the applicant is currently under investigation or prosecution
for conduct, that if committed in Florida, would violate the Florida Funeral, Cemetery, and Consumer Services Act.
The application may be deferred until the investigation/ prosecution is complete. 37

Prohibited Conduct
Chapter 497- Funeral, Cemetery, and Consumer Services
Prohibited conduct under Ch. 497, F.S., includes: 38
• fraud, misrepresentation, or deceptive practices in the sale or provision of funeral, burial, or cemetery
services;
• misuse, commingling, or misappropriation of trust funds or preneed contract funds;
• operating without proper licensure or exceeding the scope of licensure;

31 DFS, Board of Funeral, Cemetery, and Consumer Services, https://www.myfloridacfo.com/division/funeralcemetery/Board

(last visited Feb. 1, 2026).
32 S. 497.142, F.S.
33 Id.
34 S. 497.141, F.S.
35 See Id.
36 S. 497.141, F.S.
37 S. 497.141, F.S.
38 Ss. 497.152, 497.153, and 497.458, F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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• failure to comply with statutory trust, recordkeeping, and disclosure requirements; and
• conduct demonstrating untrustworthiness or financial irresponsibility.

Chapter 787 - Kidnapping, Custody Offenses, and Human Trafficking
Prohibited conduct under Ch. 787, F.S., includes: 39
• kidnapping;
• false imprisonment;
• luring or enticing a child;
• interference with custody;
• sheltering unmarried minors;
• removing minors from state or concealing minors contrary to state agency order or court order;
• human trafficking;
• human smuggling; and
• employing persons under the age of 21 years in adult entertainment establishments prohibited

Chapter 794- Sexual Battery
Prohibited conduct under Ch. 794 includes: 40
• sexual acts committed without consent;
• sexual acts involving coercion, force, threats, or incapacitation;
• sexual acts involving minors or persons legally incapable of consent; and
• abuse of authority, custodial power, or supervisory position to commit sexual acts.

Chapter 796- Prostitution
Prohibited conduct under Ch. 796, F.S., includes: 41
• Engaging in, soliciting, or procuring prostitution;
• Owning, operating, or maintaining premises for prostitution; and
• Coercion or exploitation of individuals for commercial sexual activity.

Chapter 800- Lewdness; Indecent Exposure
Prohibited conduct under Ch. 800, F.S., includes: 42
• lewd or lascivious acts committed in public or in the presence of others;
• indecent exposure of sexual organs;
• lewd or lascivious acts involving minors; and
• sexual conduct that offends public decency or morals.

Chapter 825-Abuse, Neglect, and Exploitation of Elderly Persons and Disabled Adults
Prohibited conduct under Ch. 825, F.S., includes: 43
• physical, emotional, or psychological abuse;
• neglect or failure to provide necessary care or services;
• financial exploitation or misuse of assets; and
• breach of fiduciary duty or abuse of trust involving vulnerable adults.

Chapter 827- Abuse of Children
Prohibited conduct under Ch. 827, F.S., includes: 44
• physical, emotional, or sexual abuse of a child;

39 See Ch. 787, F.S.
40 Ss. 794.011 and 794.05, F.S.
41 Ss. 796.07 and 796.035, F.S.
42 Ss. 800.03 and 800.04, F.S.
43 Ss. 825.102, 825.103, and 825.1035, F.S.
44 Ss. 827.03, 827.04, and 827.0145, F.S.

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• neglect, abandonment, or failure to provide care;
• endangering a child’s physical or mental health; and
• exploitation of children for labor or other unlawful purposes.

Chapter 847- Obscenity
Prohibited conduct under Ch. 847, F.S., includes: 45
• creation, possession, distribution, or promotion of obscene materials;
• obscene performances or exhibitions;
• use of minors in sexual performances or obscene material; and
• commercial exploitation involving obscene content.

Florida Coordinating Council
The Florida Coordinating Council within DFS serves as a central coordination and policy advisory mechanism for
the State of Florida’s financial management and information systems, most notably the Florida Financial
Management Information System 46 (“FFMIS”). The Council is tasked with reviewing and coordinating annual
workplans, developing standards and policies, conducting system studies, identifying conflicts or system impacts,
facilitating interagency resolution, and elevating unresolved matters for further action. 47 Structurally, the Council
is composed of Florida’s senior constitutional and executive officials, including the Chief Financial Officer (who
serves as chair), the Attorney General, the Commissioner of Agriculture, the Secretary of Management Services, the
State Chief Information Officer, and the Director of Planning and Budgeting, or their respective designees. This
structure is intended to preserve the integrity, reliability, and long-term sustainability of the state’s financial
management architecture. 48

The Division of Workers’ Compensation
The Division of Workers’ Compensation assists injured workers, employers, healthcare providers, and insurers in
adhering to Florida’s workers’ compensation laws. 49 Additionally, the Division biennially submits a Three-Member
Panel Report to the Legislature with advisement on any potential changes to the workers’ compensation
industry. 50

Currently, the United States Postal Service is the only mail carrier that a healthcare provider can use to submit a
dispute in claims adjudication with the workers’ compensation insurer to DFS. Disputes can only be submitted by
healthcare providers; healthcare providers have 45 days to submit a dispute. 51

The Division of Risk Management
The Division of Risk Management manages the self-insurance program for all state agencies and state universities,
and provides coverages for workers’ compensation, general liability, automobile liability, federal civil rights, and
property. Most of these coverages are currently self-insured, but the Division of Risk Management annually
purchases excess property insurance for catastrophic losses and out-of-state workers’ compensation insurance for
state employees with job locations outside the state of Florida. 52

Currently, the Division of Risk Management determines what coverage is necessary but may only purchase it upon
the approval of the Department of Management Services (“DMS”). This requires DMS to procure the Broker of

45 Ss. 847.011, 847.013, and 847.0145, F.S.
46 FFMIS is a unified, integrated statewide financial information system established by the Legislature to provide executive

branch decisionmakers with coordinated fiscal, accounting, and management data necessary for statewide planning,
management, evaluation, and accountability. S. 215.91, F.S.
47 S. 215.96, F.S.
48 Id.
49 S. 440.44, F.S.
50 S. 440.13, F.S.
51 Id.
52 S. 284.01, F.S.

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Record contract on behalf of the Division of Risk Management, maintain and monitor the contract, and approve
invoices. 53

Anti-Nepotism Law
Florida’s anti-nepotism law was created to discourage the granting of public employment or appointments based
on family relationship rather than merit. The law also prevents relatives from being placed in public office by those
in positions of authority or influence. 54 Public officials, including firefighters, are prohibited from appointing,
promoting, employing, or advancing a relative 55 in or to a position in an agency they serve or have jurisdiction
over. The prohibition also covers action by collegial body if a member’s vote or influence results in the hiring or
advancing of a relative. 56

My Safe Florida Home Program
In 2006, the Legislature created the My Safe Florida Home Program (MSFHP) within DFS, with the intent that the
MSFHP 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. 57 Under the MSFHP, DFS must
develop and implement a comprehensive and coordinated approach for hurricane damage mitigation that may
include hurricane mitigation inspections, mitigation grants, education, consumer awareness, and outreach. 58

MSFHP provides financial grants that may be used by homeowners to make improvements recommended by an
inspection which increase resistance to hurricane damage. 59 When an initial hurricane mitigation inspection
recommends improvements, the applicant may qualify for grants to make improvements to opening protection, the
reinforcement of roof-to-wall connections, improvement of roof-deck attachments, and secondary water resistance
for roofs. 60 Applicants who own a townhouse may only use grants for opening protection improvements. 61

Applicants must complete construction and request a final inspection within one year of grant approval. They may
request an extension for an additional six months.

MSFHP prioritizes applications from low-income persons who are at least 60 years old, then all other low-income
persons, then moderate-income persons who are at least 60 years old, then applications from all other moderate-
income persons, and last all other applications. 62 MSFHP accepts certifications from applicants about their income
level if the certification is a signed or electronically verified statement made under penalty of perjury. 63

The Division of Unclaimed Property
Florida’s Unclaimed Property Program is governed by the Florida Disposition of Unclaimed Property Act and is
administered by the Division of Unclaimed Property within DFS. The program is designed to protect property
owners by ensuring that intangible property presumed abandoned is safeguarded by the state until claimed, rather
than be retained indefinitely by private holders. DFS holds unclaimed property in custody, not ownership,
preserving the right of owners or heirs to reclaim the property at any time. 64

53 S. 284.08, F.S.
54 See Fla. Comm’n on Ethics, Amicus Curiae Brief, State v. Perez, No. 80,780 (Fla. 1992).
55 A relative is broadly defined to include spouses, children, siblings, in-laws, nieces/nephews, cousins, step and half relations.

S. 121.3135(1)(d), F.S.
56 S. 112.3135(2), F.S.
57 S. 215.5586, F.S.
58 Id.
59 S. 215.5586, F.S.
60 Id.
61 Id.
62 Id.
63 Id.
64 S. 717.1201, F.S.

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The program applies primarily to intangible property, including but not limited to: 65
• bank deposits and credit balances;
• uncashed checks and drafts;
• insurance policy proceeds and benefits;
• securities, dividends, and other equity interests;
• utility deposits and refunds; and
• contents of safety deposit boxes.

Property is presumed unclaimed after a specified dormancy period, which is defined as a period of owner inactivity
or lack of contact. Owner activity showing an “indication of interest” in the property, such as written
communication, electronic contact via email or phone, cashing a payment, or any other owner-initiated action
recognized by statute resets the dormancy period. 66 Dormancy periods vary by property type and generally begin
when the property becomes payable or distributable, not when it is issued. Dormancy periods include:
• 5 years for bank accounts, most uncashed checks and drafts, insurance proceeds payable but unpaid, and
wages; 67
• 3 years for stocks, dividends, and other equity interests; 68 and
• 1 year for certain governmental or court-held funds. 69

The death of an apparent owner does not pause or reset the dormancy period, and dormancy continues to run
based on the last indication of interest by the owner, regardless of whether heirs, beneficiaries, or a personal
representative are aware of the property. 70 The exception to this rule is for life insurance policies, where dormancy
begins when the insurer has actual or constructive knowledge of the insured’s death and the proceeds become
payable, even if no claim has been filed by the beneficiary. 71

Holders of property presumed unclaimed must file an annual unclaimed property report with DFS by April 30th
each year. Property is included in the report based on the recorded dormancy status as of December 31st of the
prior year. Holders must deliver the property or its value to DFS at the time of the report. 72

Before reporting property to DFS, holders are required to conduct due diligence to locate and notify the apparent
owner of the property. Written notice requirements apply to property with a value of $50 or more. Notice must be
sent to the apparent owner not more than 120 days but not less than 60 days before the holder’s reporting
deadline at the apparent owner’s last known address. The notice must inform the owner of the nature of the
property and the status of its potential transfer to DFS. If the apparent owner provides a document response after
receiving the notice, it constitutes as an affirmative indication of interest in the property and prevents the
property’s remittance to the state. 73

Failure from holders to complete due diligence may expose them to enforcement action from DFS. Penalties
include: 74
• interest assessments for late reporting or delivery;
• civil penalties for failure to report, underreporting, or refusal to remit property; and
• audits and examinations of holders’ records.

65 S. 717.101(18), F.S.
66 See s, 717.105, F.S.
67 Ss. 717.105, 717.106, 717.112, and 717.115, F.S.
68 S. 717.1101, F.S.
69 S. 717.113, F.S.
70 See s. 717.102(4), F.S.
71 S. 717.107, F.S.
72 S. 717.117, F.S.
73 Id.
74 S. 717.1322, F.S.

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Penalties may be imposed per violation and may be waived under limited circumstances showing good cause. 75

Once property is remitted to state custody, DFS becomes responsible for the safekeeping of the property and
making notification attempts to the apparent owner of the property. 76 DFS must maintain a publicly searchable
unclaimed property database and a claims process for which apparent owners or heirs may make a claim. There is
no statute of limitations for owners and heirs to file a claim to reassume their property. 77

All funds received under the Florida Disposition of Unclaimed Property Act, including the cash value of unclaimed
property and proceeds from the sale of tangible property, are initially deposited into the Unclaimed Property Trust
Fund. DFS retained up to $15 million to cover claims and administrative costs associated with managing and
returning unclaimed property. 78

After administrative reserves are set aside, remaining unclaimed property receipts must be deposited into the
State School Fund. The State School Fund is a constitutionally established trust that supports K-12 education and
other public education purposes across Florida. Funds remitted from unclaimed property thus bolster statewide
education financing until they are needed to satisfy rightful owner claims. 79

Other provisions of Florida law addressing inactive or lost personal property, including Ch. 705 and 716, use the
term “abandoned property” to describe property that remains unclaimed following a period of owner inactivity.
Similarly, most other states’ unclaimed property statutes employ “abandoned property” as the operative term
within a custodial framework. 80

Litigation Landscape: Florida Unclaimed Property
A constitutional challenge to Florida’s unclaimed property program is currently unfolding in federal courts,
centered on whether the state’s handling of presumed unclaimed property constitutes a violation of the Takings
Clause of the Fifth Amendment.

In Maron vs. Chief Financial Officer of Florida, private property owners whose unclaimed property had been
delivered into the state’s custody argued that Florida’s Unclaimed Personal Property Act effectively takes their
property without just compensation because the state retains and uses the property, and any earnings derived
therefrom, and does not pay the amount of the earnings accrued on the property while in the custody of the state
along with the principal value of the property back to the owner when the property is returned. 81

The United States District Court for the Northern District of Florida initially dismissed the plaintiffs’ claim,
concluding that the Florida Disposition of Unclaimed Property Act could constitutionally revert the property
outright, and therefore, that returning the principal value of the property without the interest it accrued while in
the custody of the state did not constitute an unconstitutional taking. The district court also addressed
jurisdictional challenges, finding that the plaintiffs had standing but ruling that sovereign immunity barred much of
their state law challenge. 82

On appeal, the 11th Circuit vacated and remanded the district court’s decision, holding that the plaintiffs had
standing and that sovereign immunity did not bar the Fifth Amendment takings claim. Critically, the 11th Circuit
rejected the notion that the Act transfers title to the state, emphasizing that under the Florida Disposition of
Unclaimed Property Act the state merely assumes custody and responsibility for the safekeeping of unclaimed

75 Id.
76 S. 717.118, F.S.
77 S. 717.124(8), F.S.
78 S. 717.123, F.S.
79 Id.
80 DFS, supra note 7, at pg. 5
81 Maron v. Chief Financial Officer of Florida, No. 4:22-cv-00255-RH-MAF (N.D. Fla. 2023).
82 Id.

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property rather than title. 83 Additionally, the court addressed that since owners are not faced with any statute of
limitation in reclaiming their property, the ongoing property right of the owner undermines any claim that the
property is truly “abandoned”. 84

Based on this framework, the court concluded that vesting custody, even without a formal title transfer, can
constitute as a per se physical taking if the government uses the property for public purposes without just
compensation. The opinion directed further proceedings to develop the factual record on whether the property
remained the owner’s property, the nature of the state’s appropriation, and the measure of just compensation. 85
The case is currently back in the district court.

BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking 15 Y, 0 N, As CS 2/3/2026 Brackett Veigle
Subcommittee
THE CHANGES ADOPTED BY THE • Required DFS to notify a MSFHP applicant at least 5 business days
COMMITTEE: before an application is deemed abandoned. If an applicant replies to
the notice and provides good cause for why the application should not
be deemed abandoned, DFS may determine the application is not
abandoned or allow the applicant to submit a subsequent grant
application.
• Removed the requirement for applicants for licensure by the Board to
disclose misdemeanors committed more than 5 years before the
application that are indirectly related to the practice or activities
regulated by the Board.
• Allowed public officials to appoint, employ, promote, and advocate for a
relative to be a firefighter as it is part of a competitive process in a
collective bargaining agreement.
State Administration Budget 11 Y, 0 N, As CS Topp Helpling
Subcommittee
THE CHANGES ADOPTED BY THE • Conformed statute to the new state accounting system known as the
COMMITTEE: Florida Planning and Ledger Management (PALM).
• Restored the current cap of $15 million that DFS is authorized to retain
for the Abandoned Property Program.
Commerce Committee Hamon Veigle

83 Maron vs. Chief Financial Officer of Florida, No. 23-13178, (11th Cir. May 16, 2025).
84 Id.
85 Maron vs. Chief Financial Officer of Florida, No. 23-13178, (11th Cir. May 16, 2025).

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CS/CS/HB 1221 2026

1 A bill to be entitled
2 An act relating to the Department of Financial
3 Services; amending s. 17.11, F.S.; revising the
4 subsystem used for a certain report of disbursements
5 made; amending s. 17.13, F.S.; requiring the
6 replacement of lost or destroyed warrants; amending s.
7 110.113, F.S.; deleting the Department of Financial
8 Services' authority to make semimonthly salary
9 payments; amending s. 112.3135, F.S.; authorizing a
10 public official to take specified actions in relation
11 to the employment of a relative as a firefighter;
12 amending s. 215.422, F.S.; revising the Chief
13 Financial Officer's rulemaking authority; requiring
14 agencies to pay interest from available appropriations
15 under certain circumstances; amending s. 215.5586,
16 F.S.; defining terms; revising eligibility
17 requirements for a hurricane mitigation inspection
18 under the My Safe Florida Home Program; revising the
19 circumstances under which applicants may submit a
20 subsequent hurricane mitigation inspection; deleting
21 the requirement that licensed inspectors must
22 determine mitigation measures during initial
23 inspections of eligible homes; deleting inspectors'
24 authorization to inspect townhouses; revising the
25 criteria for eligibility for a hurricane mitigation

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26 grant; revising the grant's applicant requirements;
27 revising the improvements that grants may be used for;
28 requiring that improvements be identified in the final
29 hurricane mitigation inspection to receive grant
30 funds; deleting a provision related to grants for
31 townhouses; authorizing the program to accept a
32 specified certification directly from applicants;
33 requiring applicants who receive grants to finalize
34 construction and request a final inspection within a
35 specified timeframe; specifying that an application is
36 deemed abandoned, rather than withdrawn, under certain
37 circumstances; requiring the department to notify an
38 applicant within a specified time period before an
39 application is be deemed abandoned; authorizing the
40 applicant to submit a subsequent application in
41 certain circumstances; authorizing the department to
42 determine that an application is not abandoned in
43 certain circumstances; amending s. 215.89, F.S.;
44 deleting obsolete provisions; amending s. 215.93,
45 F.S.; revising the subsystems of the Florida Financial
46 Management Information System; requiring certain
47 requests for records to be made to a specified entity;
48 prohibiting such requests from being made to the
49 functional owner of the subsystem; providing an
50 exception; amending s. 215.94, F.S.; providing that

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51 the department is the functional owner of the
52 Financial Management Subsystem; revising the functions
53 of such subsystem; amending s. 215.96, F.S.; revising
54 the composition of the coordinating council; deleting
55 a requirement for the design and coordination staff;
56 requiring minutes of meetings to be available to
57 interested persons; revising the composition of ex
58 officio members of the council; revising the duties,
59 powers, and responsibilities of the council; amending
60 ss. 215.985, 216.102, and 216.141, F.S.; conforming
61 provisions to changes made by the act; amending s.
62 284.08, F.S.; authorizing the department to determine
63 what property insurance coverage is necessary;
64 authorizing the department to purchase certain
65 insurance coverages; authorizing the department to
66 contract with insurance or reinsurance brokers for
67 certain purposes; amending s. 284.33, F.S.;
68 authorizing the department to purchase certain
69 insurance coverages; authorizing the department to
70 contract with insurance or reinsurance brokers for
71 certain purposes; amending s. 440.13, F.S.; revising
72 the timeframe in which health care providers must
73 petition the department to resolve utilization and
74 reimbursement disputes; revising petition service
75 requirements; revising the timeframe in which the

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76 panel determining the statewide schedule of maximum
77 reimbursement allowances must submit certain
78 recommendations to the Legislature; creating s.
79 497.1411, F.S.; defining the term "applicant";
80 specifying that certain applicants are permanently
81 barred from licensure; specifying that certain
82 applicants are subject to disqualifying periods;
83 requiring the Board of Funeral, Cemetery, and Consumer
84 Services to adopt rules; specifying requirements,
85 authorizations, and prohibitions for such rules;
86 specifying when a disqualifying period begins;
87 specifying that the applicant has certain burdens to
88 demonstrate that he or she is qualified for licensure;
89 specifying that certain applicants who have been
90 granted a pardon or restoration of civil rights are
91 not barred or disqualified from licensure; specifying
92 that such pardon or restoration does not require the
93 board to award a license; authorizing the board to
94 grant an exemption from disqualification under certain
95 circumstances; specifying requirements for the
96 applicant in order for the board to grant an
97 exemption; specifying that the board has discretion to
98 grant or deny an exemption; specifying that certain
99 decisions are subject to ch. 120, F.S.; providing
100 applicability and construction; amending s. 497.142,

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101 F.S.; prohibiting an application from being deemed
102 complete under certain circumstances; revising the
103 list of crimes to be disclosed on a license
104 application; amending s. 626.171, F.S.; deleting
105 reinsurance intermediaries from certain application
106 requirements; revising the list of persons from whom
107 the department is required to accept uniform
108 applications; making clarifying changes regarding the
109 voluntary submission of cellular telephone numbers;
110 revising the exemption from the application filing fee
111 for members of the United States Armed Forces;
112 amending s. 626.292, F.S.; revising applicant
113 requirements for a license transfer; amending s.
114 626.611, F.S.; requiring the department to require
115 license reexamination of certain persons, and suspend
116 or revoke the eligibility to hold a license or
117 appointment of such persons under certain
118 circumstances; amending the grounds for suspension or
119 revocation; amending 626.621, F.S.; authorizing the
120 department to require an reexamination of certain
121 persons; amending s. 626.731, F.S.; revising the
122 qualifications for a general lines agent's license;
123 amending s. 626.785, F.S.; revising the qualifications
124 for a life agent's license; amending s. 626.831, F.S.;
125 revising the qualifications for a health agent's

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126 license; amending s. 626.854, F.S.; requiring a public
127 adjuster, public adjuster apprentice, or public
128 adjusting firm to respond with specific information
129 within a specified timeframe and document in the file
130 the response or information provided; amending s.
131 648.34, F.S.; revising requirements for bail bond
132 agent applicants; amending s. 648.382, F.S.; requiring
133 officers or officials of the appointing insurer to
134 obtain, rather than submit, certain information;
135 amending s. 717.001, F.S.; revising the short title;
136 amending s. 717.101, F.S.; revising and adding
137 definitions; amending s. 717.102, F.S.; providing that
138 certain intangible property is presumed abandoned;
139 deleting a provision relating to the presumption that
140 certain intangible property is presumed unclaimed;
141 specifying the dormancy period for property presumed
142 abandoned; requiring that property be considered
143 payable or distributable under certain circumstances;
144 deleting a provision relating to when property is
145 payable or distributable; revising a presumption;
146 providing that property shall be presumed abandoned
147 under certain circumstances; providing an exception;
148 amending s. 717.103, F.S.; requiring that intangible
149 property be subject to the custody of the department
150 under certain circumstances; amending criteria for

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151 when intangible property is subject to the custody of
152 the department; repealing s. 717.1035, F.S., relating
153 to property originated or issued by this state, any
154 political subdivision of this state, or any entity
155 incorporated, organized, created, or otherwise located
156 in the state; amending ss. 717.104, 717.1045, 717.105,
157 717.106, 717.107, 717.1071, 717.108, and 717.109,
158 F.S.; conforming provisions to changes made by the
159 act; amending s. 717.1101, F.S.; revising the
160 timelines and conditions under which stock, other
161 equity interests, or debt of a business association is
162 considered abandoned; requiring the holder to attempt
163 to confirm the apparent owner's interest in the equity
164 interest by sending an e-mail communication under
165 certain circumstances; requiring the holder to attempt
166 to contract the apparent owner by first-class United
167 States mail under certain circumstances; specifying
168 that equity interest is presumed abandoned under
169 certain circumstances; revising when unmatured,
170 unredeemed, matured, or redeemed debt is presumed
171 abandoned; specifying that the applicable dormancy
172 period ceases under certain circumstances; revising
173 the timeframe that a sum held or owing by a business
174 association is presumed abandoned; amending ss.
175 717.111, 717.112, 717.1125, 717.113, 717.115, and

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176 717.116, F.S.; conforming provisions to changes made
177 by the act; amending s. 717.117, F.S.; specifying that
178 property is presumed abandoned upon the expiration of
179 the applicable dormancy periods; specifying that
180 property is not deemed abandoned for certain purposes
181 until the holder meets certain requirements; requiring
182 holders of property presumed abandoned that has a
183 specified value to use due diligence to locate and
184 notify the apparent owner; requiring, before a
185 specified timeframe, a holder in possession of
186 presumed abandoned property to send a specified
187 written notice to the apparent owner; specifying the
188 method of delivery of such notice; requiring, before a
189 specified timeframe, the holder to send a second
190 written notice under certain circumstances;
191 authorizing the reasonable cost for the notice to be
192 deducted from the property; specifying that a signed
193 return receipt constitutes an affirmative
194 demonstration of continued interest; specifying
195 requirements of the written notice; requiring holders
196 of abandoned property to submit a specified report to
197 the department; prohibiting certain balances,
198 overpayments, deposits, and refunds from being
199 reported as abandoned property; prohibiting certain
200 securities from being included in the report;

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201 requiring the holder to report and deliver such
202 securities under certain circumstances; requiring the
203 report to be signed and verified and contain a
204 specified statement; deleting certain provisions
205 relating to the due diligence and notices to apparent
206 owners; amending s. 717.118, F.S.; revising the
207 state's obligation to notify apparent owners that
208 their abandoned property has been reported and
209 remitted to the department; requiring the department
210 to use a cost-effective means to make an attempt to
211 notify certain apparent owners; specifying
212 requirements for the notice; requiring the department
213 to maintain a specified website; revising
214 applicability; amending s. 717.119, F.S.; conforming
215 provisions to changes made by the act; revising
216 requirements for firearm or ammunition found in an
217 abandoned safe-deposit box or safekeeping repository;
218 revising requirements if a will or trust instrument is
219 included among the contents of an abandoned safe-
220 deposit box or safekeeping repository; amending ss.
221 717.1201 and 717.122, F.S.; conforming provisions to
222 changes made by the act; amending s. 717.123, F.S.;
223 conforming provisions to changes made by the act;
224 revising the name of a certain trust fund; amending s.
225 717.1235, F.S.; conforming provisions to changes made

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226 by the act; amending s. 717.124, F.S.; conforming
227 provisions to changes made by the act; deleting
228 provisions related to requirements of claimant's
229 representatives; specifying that the department is
230 authorized to make a distribution of property or money
231 in accordance with a specified agreement under certain
232 circumstances; requiring shares of securities to be
233 delivered directly to the claimant under certain
234 circumstances; deleting a provision authorizing the
235 department to develop a process by which a buyer of
236 unclaimed property may electronically submit certain
237 images and documents; deleting provisions relating to
238 a buyer of unclaimed property's filing of a claim;
239 amending s. 717.12403, F.S.; conforming provisions to
240 changes made by the act; amending s. 717.12404, F.S.;
241 requiring claims on behalf of an active corporation to
242 include a specified driver license; conforming
243 provisions to changes made by the act; amending ss.
244 717.12405 and 717.12406, F.S.; conforming provisions
245 to changes made by the act; amending s. 717.1241,
246 F.S.; defining the term "conflicting claim";
247 conforming provisions to changes made by the act;
248 revising requirements for remitting property when
249 conflicting claims have been received by the
250 department; amending ss. 717.1242, 717.1243, 717.1244,

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251 717.1245, 717.125, 717.126, 717.1261, 717.1262,
252 717.129, 717.1301, 717.1315, and 717.132, F.S.;
253 conforming provisions to changes made by the act;
254 amending s. 717.1322, F.S.; revising the acts that
255 constitute grounds for administrative enforcement
256 action by the department; conforming provisions to
257 changes made by the act; amending ss. 717.133,
258 717.1333, and 717.1341, F.S.; conforming provisions to
259 changes made by the act; amending s. 717.135, F.S.;
260 conforming provisions to changes made by the act;
261 deleting applicability; creating s. 717.1356, F.S.;
262 specifying that agreements for the purchase of
263 abandoned property reported to the department are
264 valid only under certain circumstances; authorizing
265 the seller to cancel a purchase agreement without
266 penalty or obligation within a specified timeframe;
267 specifying that the agreement must contain certain
268 language; requiring a copy of an executed Florida
269 Abandoned Property Purchase Agreement be filed with
270 the purchaser's claim; prohibiting the department from
271 approving the claim under certain circumstances;
272 specifying that certain purchase agreements are
273 enforceable only by the seller; amending s. 717.138,
274 F.S.; conforming provisions to changes made by the
275 act; amending s. 717.1382, F.S.; conforming provisions

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276 to changes made by the act; conforming a cross-
277 reference; amending s. 717.139, F.S.; providing
278 legislative findings; revising a statement of public
279 policy; deleting a legislative declaration; providing
280 legislative intent; prohibiting title to abandoned
281 property from transferring to the state except under
282 certain circumstances; amending s. 717.1400, F.S.;
283 requiring an individual to meet certain requirements
284 in order to file claims as a claimant representative;
285 revising application requirements for registering as a
286 claimant representative; requiring claimant
287 representatives to file and obtain payment on a
288 specified number of claims within a specified
289 timeframe to maintain active registration; requiring
290 the department to notify the claimant representative
291 in writing and provide a certain timeframe to
292 demonstrate compliance or good cause for noncompliance
293 under certain circumstances; requiring the department
294 to revoke a registration under certain circumstances;
295 prohibiting a claimant representative from reapplying
296 under certain circumstances; amending ss. 1001.281 and
297 1001.282, F.S.; conforming provisions to changes made
298 by the act; amending ss. 197.582 and 626.9541, F.S.;
299 conforming cross-references; reenacting s.
300 772.13(6)(a), F.S., relating to postjudgment execution

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301 proceedings to enforce a judgment entered against a
302 terrorist party, to incorporate the amendment made to
303 s. 717.101, F.S., in a reference thereto; providing an
304 effective date.
305
306 Be It Enacted by the Legislature of the State of Florida:
307
308 Section 1. Subsection (2) of section 17.11, Florida
309 Statutes, is amended to read:
310 17.11 To report disbursements made.—
311 (2) The Chief Financial Officer shall also cause to have
312 reported from the Financial Management Florida Accounting
313 Information Resource Subsystem no less than quarterly the
314 disbursements which agencies made to small businesses, as
315 defined in the Florida Small and Minority Business Assistance
316 Act; to certified minority business enterprises in the
317 aggregate; and to certified minority business enterprises broken
318 down into categories of minority persons, as well as gender and
319 nationality subgroups. This information shall be made available
320 to the agencies, the Office of Supplier Diversity, the Governor,
321 the President of the Senate, and the Speaker of the House of
322 Representatives. Each agency shall be responsible for the
323 accuracy of information entered into the Financial Management
324 Florida Accounting Information Resource Subsystem for use in
325 this reporting.

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326 Section 2. Section 17.13, Florida Statutes, is amended to
327 read:
328 17.13 To replace duplicate warrants lost or destroyed.—
329 (1) The Chief Financial Officer is required to replace
330 duplicate any Chief Financial Officer's warrants that may have
331 been lost or destroyed, or may hereafter be lost or destroyed,
332 upon the owner thereof or the owner's agent or attorney
333 presenting the Chief Financial Officer the statement, under
334 oath, reciting the number, date, and amount of any warrant or
335 the best and most definite description in his or her knowledge
336 and the circumstances of its loss; if the Chief Financial
337 Officer deems it necessary, the owner or the owner's agent or
338 attorney shall file in the office of the Chief Financial Officer
339 a surety bond, or a bond with securities, to be approved by one
340 of the judges of the circuit court or one of the justices of the
341 Supreme Court, in a penalty of not less than twice the amount of
342 any warrants so replaced duplicated, conditioned to indemnify
343 the state and any innocent holders thereof from any damages that
344 may accrue from such replacement duplication.
345 (2) The Chief Financial Officer is required to replace
346 duplicate any Chief Financial Officer's warrant that may have
347 been lost or destroyed, or may hereafter be lost or destroyed,
348 when sent to any payee via any state agency when such warrant is
349 lost or destroyed prior to being received by the payee and
350 provided the director of the state agency to whom the warrant

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351 was sent presents to the Chief Financial Officer a statement,
352 under oath, reciting the number, date, and amount of the warrant
353 lost or destroyed, the circumstances surrounding the loss or
354 destruction of such warrant, and any additional information that
355 the Chief Financial Officer shall request in regard to such
356 warrant.
357 (3) Any replacement duplicate Chief Financial Officer's
358 warrant issued in pursuance of the above provisions shall be of
359 the same validity as the original was before its loss.
360 Section 3. Subsection (1) of section 110.113, Florida
361 Statutes, is amended to read:
362 110.113 Pay periods for state officers and employees;
363 salary payments by direct deposit.—
364 (1) The normal pay period for salaries of state officers
365 and employees shall be 1 month. The Department of Financial
366 Services shall issue either monthly or biweekly salary payments
367 by state warrants or by direct deposit pursuant to s. 17.076 or
368 make semimonthly salary payments by direct deposit pursuant to
369 s. 17.076, as requested by the head of each state agency and
370 approved by the Executive Office of the Governor and the
371 Department of Financial Services.
372 Section 4. Paragraph (c) is added to subsection (2) of
373 section 112.3135, Florida Statutes, to read:
374 112.3135 Restriction on employment of relatives.—
375 (2)

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376 (c) To aid the recruitment of firefighters within this
377 state, notwithstanding paragraph (a), a public official may
378 appoint, employ, promote, or advance, or advocate for the
379 appointment, employment, promotion, or advancement of a relative
380 as a firefighter as defined in s. 633.102 if such appointment,
381 employment, promotion, or advancement is part of a competitive
382 process provided for in a collective bargaining agreement.
383 Section 5. Subsections (15) and (16) of section 215.422,
384 Florida Statutes, are amended to read:
385 215.422 Payments, warrants, and invoices; processing time
386 limits; dispute resolution; agency or judicial branch
387 compliance.—
388 (15) The Chief Financial Officer may adopt rules to
389 authorize advance payments for goods and services, including,
390 but not limited to, maintenance agreements and subscriptions,
391 such as prepaid multiyear software licenses. Such rules shall
392 provide objective criteria for determining when it is in the
393 best interest of the state to make payments in advance and shall
394 also provide for adequate protection to ensure that such goods
395 or services will be provided.
396 (16) Nothing contained in this section shall be construed
397 to be an appropriation. Any interest which becomes due and owing
398 pursuant to this section must be paid shall only be payable from
399 the appropriation charged for such goods or services. However,
400 if insufficient funds are available within the appropriation

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401 charged for such goods or services, the agency must pay the
402 interest from a similar or appropriate appropriation category.
403 Section 6. Subsections (4) through (10) of section
404 215.5586, Florida Statutes, are renumbered as subsections (5)
405 through (11), respectively, paragraphs (a) through (e) of
406 subsection (1), subsections (2) and (3), paragraph (a) of
407 present subsection (8), and present subsection (10) are amended,
408 and a new subsection (4) is added to that section, to read:
409 215.5586 My Safe Florida Home Program.—There is
410 established within the Department of Financial Services the My
411 Safe Florida Home Program. The department shall provide fiscal
412 accountability, contract management, and strategic leadership
413 for the program, consistent with this section. This section does
414 not create an entitlement for property owners or obligate the
415 state in any way to fund the inspection or retrofitting of
416 residential property in this state. Implementation of this
417 program is subject to annual legislative appropriations. It is
418 the intent of the Legislature that, subject to the availability
419 of funds, the My Safe Florida Home Program provide licensed
420 inspectors to perform hurricane mitigation inspections of
421 eligible homes and grants to fund hurricane mitigation projects
422 on those homes. The department shall implement the program in
423 such a manner that the total amount of funding requested by
424 accepted applications, whether for inspections, grants, or other
425 services or assistance, does not exceed the total amount of

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426 available funds. If, after applications are processed and
427 approved, funds remain available, the department may accept
428 applications up to the available amount. The program shall
429 develop and implement a comprehensive and coordinated approach
430 for hurricane damage mitigation pursuant to the requirements
431 provided in this section.
432 (1) HURRICANE MITIGATION INSPECTIONS.—
433 (a)1. For the purposes of this paragraph, the term:
434 a. "Attached" means a dwelling unit that shares a wall
435 with another dwelling unit.
436 b. "Detached" means a dwelling that does not share a wall
437 with another dwelling unit or building and has greater than zero
438 clearance between it and any other building. This term includes
439 a garage that is located under a contiguous roof with a
440 residence.
441 c. "Single-family" means a residence designed for and
442 containing only one dwelling unit.
443 2. An applicant is To be eligible for a hurricane
444 mitigation inspection under the program if all of the following
445 conditions are met:
446 a.1. The A home for which the inspection is sought is must
447 be a single-family, unit on an individual parcel of land that
448 is:
449 (I) A detached residential property; or
450 (II) An attached residential property not exceeding three

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451 stories. A townhouse as defined in s. 481.203;
452 b.2. The A home for which the inspection is sought is must
453 be site-built and owner-occupied.; and
454 c.3. The applicant is homeowner must have been granted a
455 homestead exemption on the home under chapter 196.
456 (b)1. An application for a hurricane mitigation inspection
457 must contain a signed or electronically verified statement made
458 under penalty of perjury that the applicant has submitted only
459 one inspection application on the home or that the application
460 is allowed under subparagraph 2., and the application must have
461 documents attached which demonstrate that the applicant meets
462 the requirements of paragraph (a).
463 2. An applicant may submit a subsequent hurricane
464 mitigation inspection application for the same home only if:
465 a. The original hurricane mitigation inspection
466 application has been denied or withdrawn because of material
467 errors or omissions in the application;
468 b. The original hurricane mitigation inspection
469 application was denied or withdrawn because the applicant home
470 did not meet the eligibility criteria for an inspection at the
471 time of the previous application, and the applicant homeowner
472 reasonably believes that he or she is the home now is eligible
473 for an inspection; or
474 c. The program's eligibility requirements for an
475 inspection have changed since the original application date, and

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476 the applicant reasonably believes that her or she the home is
477 eligible under the new requirements; or.
478 d. More than 24 months have passed since the applicant
479 received a hurricane mitigation inspection under this section,
480 and the applicant has not received a grant payment through the
481 program for that inspection.
482 (c) An applicant meeting the requirements of paragraph (a)
483 may receive an inspection of the a home through under the
484 program without being eligible for a grant under subsection (2)
485 or applying for such grant.
486 (d) Licensed inspectors are to provide initial home
487 inspections of eligible homes to determine what mitigation
488 measures are needed, what insurance premium discounts may be
489 available, and what improvements to existing residential
490 properties are needed to reduce the property's vulnerability to
491 hurricane damage. An inspector may inspect a townhouse as
492 defined in s. 481.203 to determine if opening protection
493 mitigation as listed in subparagraph (2)(e)1. would provide
494 improvements to mitigate hurricane damage.
495 (e) The department shall contract with wind certification
496 entities to provide hurricane mitigation inspections. The
497 initial inspections provided to applicants homeowners, at a
498 minimum, must include:
499 1. A home inspection and report that summarizes the
500 inspection results and identifies recommended improvements an

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501 applicant a homeowner may make take to mitigate hurricane
502 damage.
503 2. A range of cost estimates regarding the recommended
504 mitigation improvements.
505 3. Information regarding estimated premium discounts,
506 correlated to the current mitigation features and the
507 recommended mitigation improvements identified by the
508 inspection.
509 (2) HURRICANE MITIGATION GRANTS.—Financial grants shall be
510 used by applicants homeowners to make improvements recommended
511 by an initial inspection which increase a home's resistance to
512 hurricane damage.
513 (a) An applicant A homeowner is eligible for a hurricane
514 mitigation grant if all of the following criteria are met:
515 1. The applicant home must be eligible for an inspection
516 under subsection (1).
517 2. The home must be a dwelling with an insured value of
518 $700,000 or less. Applicants Homeowners who are low-income
519 persons, as defined in s. 420.0004(11), are exempt from this
520 requirement.
521 3. The home must undergo an initial acceptable hurricane
522 mitigation inspection through the program as provided in
523 subsection (1).
524 4. The building permit application for initial
525 construction of the home must have been built made before

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526 January 1, 2008, as reflected on the county property appraiser's
527 website.
528 5. The applicant homeowner must agree to make his or her
529 home available for a final inspection once a mitigation project
530 is completed.
531 6. The applicant homeowner must agree to provide to the
532 department information received from the applicant's homeowner's
533 insurer identifying the discounts realized by the applicant
534 homeowner because of the mitigation improvements funded through
535 the program.
536 7.a. The applicant homeowner must be a low-income person
537 or moderate-income person as defined in s. 420.0004.
538 b. The hurricane mitigation inspection must have occurred
539 within the previous 24 months from the date of application.
540 c. Notwithstanding subparagraph 2., applicants homeowners
541 who are low-income persons, as defined in s. 420.0004(11), are
542 not exempt from the requirement that the home must be a dwelling
543 with an insured value of $700,000 or less.
544 d. This subparagraph expires July 1, 2026.
545 (b)1. An application for a grant must contain a signed or
546 electronically verified statement made under penalty of perjury
547 that the applicant has submitted only one grant application or
548 that the application is allowed under subparagraph 2., and the
549 application must have documents attached demonstrating that the
550 applicant meets the requirements of paragraph (a).

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551 2. An applicant may submit a subsequent grant application
552 if:
553 a. The original grant application was denied or withdrawn
554 because the application contained errors or omissions;
555 b. The original grant application was denied or withdrawn
556 because the applicant home did not meet the eligibility criteria
557 for a grant at the time of the previous application, and the
558 applicant homeowner reasonably believes that he or she is the
559 home now is eligible for a grant; or
560 c. The program's eligibility requirements for a grant have
561 changed since the original application date, and the applicant
562 reasonably believes that he or she is an eligible homeowner
563 under the new requirements.
564 3. A grant application must include a statement from the
565 applicant homeowner which contains the name and state license
566 number of the contractor that the applicant homeowner
567 acknowledges as the intended contractor for the mitigation work.
568 The program must electronically verify that the contractor's
569 state license number is valid accurate and up to date before
570 grant approval.
571 (c) All grants must be matched on the basis of $1 provided
572 by the applicant for $2 provided by the state up to a maximum
573 state contribution of $10,000 toward the actual cost of the
574 mitigation project, except as provided in paragraph (h).
575 (d) All hurricane mitigation performed under the program

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576 must be based upon the securing of all required local permits
577 and inspections and must be performed by properly licensed
578 contractors.
579 (e) When recommended by an initial a hurricane mitigation
580 inspection, grants for eligible applicants homes may be used for
581 all of the following improvements:
582 1. Opening protection improvements, including:
583 a. Exterior doors.,
584 b. Garage doors.,
585 c. Windows., and
586 d. Skylights.
587 2. Roof improvements, including:
588 a. Reinforcing roof-to-wall connections.
589 b.3. Improving the strength of roof-deck attachments.
590 c.4. Installing secondary water resistance for roof and
591 replacing the roof covering.
592 (f) Improvements must be identified by the final hurricane
593 mitigation inspection to receive grant funds When recommended by
594 a hurricane mitigation inspection, grants for townhouses, as
595 defined in s. 481.203, may only be used for opening protection.
596 (g) The department may require that improvements be made
597 to all openings, including exterior doors, garage doors,
598 windows, and skylights, as a condition of reimbursing an
599 applicant a homeowner approved for a grant. The department may
600 adopt, by rule, the maximum grant allowances for any improvement

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601 allowable under paragraph (e) or paragraph (f).
602 (h) Low-income applicants homeowners, as defined in s.
603 420.0004(11), who otherwise meet the applicable requirements of
604 this subsection are eligible for a grant of up to $10,000 and
605 are not required to provide a matching amount to receive the
606 grant.
607 (i)1. The department shall develop a process that ensures
608 the most efficient means to collect and verify inspection
609 applications and grant applications to determine eligibility.
610 The department may direct hurricane mitigation inspectors to
611 collect and verify grant application information or use the
612 Internet or other electronic means to collect information and
613 determine eligibility.
614 2. The department shall prioritize the review and approval
615 of such inspection applications and grant applications in the
616 following order:
617 a. First, applications from low-income persons, as defined
618 in s. 420.0004, who are at least 60 years old;
619 b. Second, applications from all other low-income persons,
620 as defined in s. 420.0004;
621 c. Third, applications from moderate-income persons, as
622 defined in s. 420.0004, who are at least 60 years old;
623 d. Fourth, applications from all other moderate-income
624 persons, as defined in s. 420.0004; and
625 e. Last, all other applications.

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626 3. The department shall start accepting inspection
627 applications and grant applications no earlier than the
628 effective date of a legislative appropriation funding
629 inspections and grants, as follows:
630 a. Initially, from applicants prioritized under sub-
631 subparagraph 2.a.;
632 b. From applicants prioritized under sub-subparagraph
633 2.b., beginning 15 days after the program initially starts
634 accepting applications;
635 c. From applicants prioritized under sub-subparagraph
636 2.c., beginning 30 days after the program initially starts
637 accepting applications;
638 d. From applicants described in sub-subparagraph 2.d.,
639 beginning 45 days after the program initially starts accepting
640 applications; and
641 e. From all other applicants, beginning 60 days after the
642 program initially starts accepting applications.
643 4. The program may accept a certification directly from a
644 low-income applicant homeowner or moderate-income applicant
645 homeowner who meets the requirements of s. 420.0004(11) or (12),
646 respectively, if the applicant homeowner provides such
647 certification in a signed or electronically verified statement
648 made under penalty of perjury.
649 5. The program may accept a certification directly from an
650 applicant attesting to his or her age if the applicant provides

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651 such certification in a signed or electronically verified
652 statement made under penalty of perjury.
653 (j) An applicant A homeowner who receives a grant shall
654 finalize construction and request a final inspection, or request
655 an extension for an additional 6 months, within 18 months 1 year
656 after grant application approval. If an applicant a homeowner
657 fails to comply with this paragraph, his or her application is
658 deemed abandoned and the grant money reverts to the department.
659 (3) REQUESTS FOR INFORMATION.—The department may request
660 that an applicant provide additional information. An application
661 is deemed abandoned withdrawn by the applicant if the department
662 does not receive a response to its request for additional
663 information within 60 days after the notification of any
664 apparent error or omission.
665 (4) ABANDONED APPLICATIONS.—The department must notify an
666 applicant at least 5 business days before an application is
667 deemed abandoned. If the applicant responds to such notification
668 within 5 business days after receiving the notice and
669 demonstrates good cause for why the application should not be
670 deemed abandoned, the applicant may submit a subsequent grant
671 application or the department may determine the application is
672 not abandoned.
673 (9)(8) CONTRACT MANAGEMENT.—
674 (a) The department may contract with third parties for
675 grants management, inspection services, contractor services for

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676 low-income applicants homeowners, information technology,
677 educational outreach, and auditing services. Such contracts are
678 considered direct costs of the program and are not subject to
679 administrative cost limits. The department shall contract with
680 providers that have a demonstrated record of successful business
681 operations in areas directly related to the services to be
682 provided and shall ensure the highest accountability for use of
683 state funds, consistent with this section.
684 (11)(10) REPORTS.—The department shall make an annual
685 report on the activities of the program that shall account for
686 the use of state funds and indicate the number of inspections
687 requested, the number of inspections performed, the number of
688 grant applications received, the number and value of grants
689 approved, and the estimated average annual amount of insurance
690 premium discounts and total estimated annual amount of insurance
691 premium discounts applicants homeowners received from insurers
692 as a result of mitigation funded through the program. The report
693 must be delivered to the President of the Senate and the Speaker
694 of the House of Representatives by February 1 of each year.
695 Section 7. Subsection (3) of section 215.89, Florida
696 Statutes, is amended to read:
697 215.89 Charts of account.—
698 (3) REPORTING STRUCTURE.—
699 (a) The Chief Financial Officer shall accept comments from
700 state agencies, local governments, educational entities,

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701 entities of higher education, and other interested parties
702 regarding the proposed charts of account until November 1, 2013.
703 (b) By January 15, 2014, the Chief Financial Officer,
704 after consultation with affected state agencies, local
705 governments, educational entities, entities of higher education,
706 and the Auditor General, shall submit to the Governor, the
707 President of the Senate, and the Speaker of the House of
708 Representatives a report recommending a uniform charts of
709 account which requires specific enterprise-wide information
710 related to revenues and expenditures of state agencies, local
711 governments, educational entities, and entities of higher
712 education. The report must include the estimated cost of
713 adopting and implementing a uniform enterprise-wide charts of
714 account.
715 Section 8. Subsections (1) and (5) of section 215.93,
716 Florida Statutes, are amended to read:
717 215.93 Florida Financial Management Information System.—
718 (1) To provide the information necessary to carry out the
719 intent of the Legislature, there shall be a Florida Financial
720 Management Information System. The Florida Financial Management
721 Information System shall be fully implemented and shall be
722 upgraded as necessary to ensure the efficient operation of an
723 integrated financial management information system and to
724 provide necessary information for the effective operation of
725 state government. Upon the recommendation of the coordinating

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726 council and approval of the board, the Florida Financial
727 Management Information System may require data from any state
728 agency information system or information subsystem or may
729 request data from any judicial branch information system or
730 information subsystem that the coordinating council and board
731 have determined to have statewide financial management
732 significance. Each functional owner information subsystem within
733 the Florida Financial Management Information System shall be
734 developed in such a fashion as to allow for timely, positive,
735 preplanned, and prescribed data transfers between the Florida
736 Financial Management Information System functional owner
737 information subsystems and from other information systems. The
738 principal unit of the system shall be the functional owner
739 information subsystem, and the system shall include, but shall
740 not be limited to, the following:
741 (a) Planning and Budgeting Subsystem.
742 (b) Florida Accounting Information Resource Subsystem.
743 (b)(c) Financial Management Subsystem.
744 (c)(d) Purchasing Subsystem.
745 (d)(e) Personnel Information System.
746 (5) Functional owners are legally responsible for the
747 security and integrity of all data records existing within or
748 transferred from their information subsystems. Each agency and
749 the judicial branch shall be responsible for the accuracy of the
750 information entered into the Florida Financial Management

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751 Information System. A request for a copy of a document or an
752 accounting record, whether by public records request or
753 subpoena, must be made to the state entity for which the
754 document or accounting record is recorded. The request may not
755 be made to the functional owner of the subsystem unless the
756 document or accounting record was recorded for such entity.
757 Section 9. Subsections (4) through (7) of section 215.94,
758 Florida Statutes, are renumbered as subsections (3) through (6),
759 respectively, and subsection (2) and present subsection (3) of
760 that section are amended to read:
761 215.94 Designation, duties, and responsibilities of
762 functional owners.—
763 (2) The Department of Financial Services shall be the
764 functional owner of the Financial Management Florida Accounting
765 Information Resource Subsystem established pursuant to ss.
766 17.03, 215.86, 216.141, and 216.151 and further developed in
767 accordance with the provisions of ss. 215.90-215.96. The
768 subsystem shall include, but shall not be limited to, the
769 following functions:
770 (a) Accounting and reporting so as to provide timely data
771 for producing financial statements for the state in accordance
772 with generally accepted accounting principles.
773 (b) Auditing and settling claims against the state.
774 (3) The Chief Financial Officer shall be the functional
775 owner of the Financial Management Subsystem. The Chief Financial

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776 Officer shall design, implement, and operate the subsystem in
777 accordance with the provisions of ss. 215.90-215.96. The
778 subsystem shall include, but shall not be limited to, functions
779 for:
780 (c)(a) Recording and reconciling credits and debits to
781 treasury fund accounts.
782 (d)(b) Monitoring cash levels and activities in state bank
783 accounts.
784 (e)(c) Monitoring short-term investments of idle cash.
785 (f)(d) Administering the provisions of the Federal Cash
786 Management Improvement Act of 1990.
787 Section 10. Subsections (2) and (3) of section 215.96,
788 Florida Statutes, are amended to read:
789 215.96 Coordinating council and design and coordination
790 staff.—
791 (2) The coordinating council shall consist of the Chief
792 Financial Officer; the Commissioner of Agriculture; the Attorney
793 General; the Secretary of Management Services; the state chief
794 information officer; the executive director of the Department of
795 Revenue; and the Director of Planning and Budgeting, Executive
796 Office of the Governor, or their designees. The Chief Financial
797 Officer, or his or her designee, shall be chair of the council,
798 and the design and coordination staff shall provide
799 administrative and clerical support to the council and the
800 board. The design and coordination staff shall maintain the

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801 Minutes of each meeting shall be and make such minutes available
802 to any interested person. The Auditor General, the State Courts
803 Administrator, a an executive officer of the Florida Association
804 of state agency administrative services director selected by the
805 council Directors, and a an executive officer of the Florida
806 Association of state budget officer selected by the council
807 Officers, or their designees, shall serve without voting rights
808 as ex officio members of the council. The chair may call
809 meetings of the council as often as necessary to transact
810 business; however, the council shall meet at least once a year.
811 Action of the council shall be by motion, duly made, seconded
812 and passed by a majority of the council voting in the
813 affirmative for approval of items that are to be recommended for
814 approval to the Financial Management Information Board.
815 (3) The coordinating council, assisted by the design and
816 coordination staff, shall have the following duties, powers, and
817 responsibilities pertaining to the Florida Financial Management
818 Information System:
819 (a) To review and coordinate annual workplans to ensure
820 that the Florida Financial Management Information System remains
821 aligned across participating entities. The coordination council
822 shall ensure that each participating entity submits an annual
823 workplan by October 1 of each year. The coordinating council
824 shall review and discuss the workplans, identify potential
825 impacts or conflicts, facilitate resolutions when practicable,

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826 and expedite unresolved issues as appropriate.
827 (b) To conduct such studies and to establish committees,
828 workgroups, and teams to develop recommendations for rules,
829 policies, procedures, principles, and standards to the board as
830 necessary to assist the board in its efforts to design,
831 implement, and perpetuate a financial management information
832 system, including, but not limited to, the establishment of
833 common data codes, and the development of integrated financial
834 management policies that address the information and management
835 needs of the functional owner subsystems. The coordinating
836 council shall make available a copy of the approved plan in
837 writing or through electronic means to each of the coordinating
838 council members, the fiscal committees of the Legislature, and
839 any interested person.
840 (c)(b) To recommend to the board solutions, policy
841 alternatives, and legislative budget request issues that will
842 provide ensure a framework for the timely, positive, preplanned,
843 and prescribed data transfer between information subsystems and
844 to recommend to the board solutions, policy alternatives, and
845 legislative budget request issues that ensure the availability
846 of data and information that support state planning, policy
847 development, management, evaluation, and performance monitoring.
848 (c) To report to the board all actions taken by the
849 coordinating council for final action.
850 (d) To review the annual work plans of the functional

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851 owner information subsystems by October 1 of each year. The
852 review shall be conducted to assess the status of the Florida
853 Financial Management Information System and the functional owner
854 subsystems in regard to the provisions of s. 215.91. The
855 coordinating council, as part of the review process, may make
856 recommendations for modifications to the functional owner
857 information subsystems annual work plans.
858 Section 11. Paragraph (a) of subsection (4) of section
859 215.985, Florida Statutes, is amended to read:
860 215.985 Transparency in government spending.—
861 (4) The Executive Office of the Governor, in consultation
862 with the appropriations committees of the Senate and the House
863 of Representatives, shall establish and maintain a website that
864 provides information relating to the approved operating budget
865 for each branch of state government and state agency.
866 (a) At a minimum, the information must include:
867 1. Disbursement data for each appropriation by the account
868 value object code associated with each expenditure established
869 within the Financial Management Florida Accounting Information
870 Resource Subsystem. Expenditure data must include the name of
871 the payee, the date of the expenditure, the amount of the
872 expenditure, and the voucher statewide document number. Such
873 data must be searchable by the name of the payee, the paying
874 agency, and fiscal year, and must be downloadable in a format
875 that allows offline analysis.

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876 2. For each appropriation, any adjustments, including
877 vetoes, approved supplemental appropriations included in
878 legislation other than the General Appropriations Act, budget
879 amendments, other actions approved pursuant to chapter 216, and
880 other adjustments authorized by law.
881 3. Status of spending authority for each appropriation in
882 the approved operating budget, including released, unreleased,
883 reserved, and disbursed balances.
884 4. Position and rate information for positions provided in
885 the General Appropriations Act or approved through an amendment
886 to the approved operating budget and position information for
887 positions established in the legislative branch.
888 5. Allotments for planned expenditures of state
889 appropriations established by state agencies in the Financial
890 Management Florida Accounting Information Resource Subsystem,
891 and the current balances of such allotments.
892 6. Trust fund balance reports, including cash available,
893 investments, and receipts.
894 7. General revenue fund balance reports, including revenue
895 received and amounts disbursed.
896 8. Fixed capital outlay project data, including original
897 appropriation and disbursements throughout the life of the
898 project.
899 9. A 10-year history of appropriations indicated by
900 agency.

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901 10. Links to state audits or reports related to the
902 expenditure and dispersal of state funds.
903 11. Links to program or activity descriptions for which
904 funds may be expended.
905 Section 12. Subsections (1) and (2) and paragraph (f) of
906 subsection (3) of section 216.102, Florida Statutes, are amended
907 to read:
908 216.102 Filing of financial information; handling by Chief
909 Financial Officer; penalty for noncompliance.—
910 (1) By September 30 of each year, each agency supported by
911 any form of taxation, licenses, fees, imposts, or exactions, the
912 judicial branch, and, for financial reporting purposes, each
913 component unit of the state as determined by the Chief Financial
914 Officer shall prepare, using generally accepted accounting
915 principles, and file with the Chief Financial Officer the
916 financial and other information necessary for the preparation of
917 annual financial statements for the State of Florida as of June
918 30. In addition, each such agency and the judicial branch shall
919 prepare financial statements showing the financial position and
920 results of agency or branch operations as of June 30 for
921 internal management purposes.
922 (a) Each state agency and the judicial branch shall record
923 the receipt and disbursement of funds from federal sources in a
924 form and format prescribed by the Chief Financial Officer. The
925 access to federal funds by the administering agencies or the

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926 judicial branch may not be authorized until:
927 1. The deposit has been recorded in the Financial
928 Management Florida Accounting Information Resource Subsystem
929 using proper, consistent codes that designate deposits as
930 federal funds.
931 2. The deposit and appropriate recording required by this
932 paragraph have been verified by the office of the Chief
933 Financial Officer.
934 (b) The Chief Financial Officer shall publish a statewide
935 policy detailing the requirements for recording receipt and
936 disbursement of federal funds into the Financial Management
937 Florida Accounting Information Resource Subsystem and provide
938 technical assistance to the agencies and the judicial branch to
939 implement the policy.
940 (2) Financial information must be contained within the
941 Financial Management Florida Accounting Information Resource
942 Subsystem. Other information must be submitted in the form and
943 format prescribed by the Chief Financial Officer.
944 (a) Each component unit shall file financial information
945 and other information necessary for the preparation of annual
946 financial statements with the agency or branch designated by the
947 Chief Financial Officer by the date specified by the Chief
948 Financial Officer.
949 (b) The state agency or branch designated by the Chief
950 Financial Officer to receive financial information and other

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951 information from component units shall include the financial
952 information in the Financial Management Florida Accounting
953 Information Resource Subsystem and shall include the component
954 units' other information in its submission to the Chief
955 Financial Officer.
956 (3) The Chief Financial Officer shall:
957 (f) Consult with and elicit comments from the Executive
958 Office of the Governor on changes to the Financial Management
959 Florida Accounting Information Resource Subsystem which clearly
960 affect the accounting of federal funds, so as to ensure
961 consistency of information entered into the Federal Aid Tracking
962 System by state executive and judicial branch entities. While
963 efforts shall be made to ensure the compatibility of the
964 Financial Management Florida Accounting Information Resource
965 Subsystem and the Federal Aid Tracking System, any successive
966 systems serving identical or similar functions shall preserve
967 such compatibility.
968
969 The Chief Financial Officer may furnish and publish in
970 electronic form the financial statements and the annual
971 comprehensive financial report required under paragraphs (a),
972 (b), and (c).
973 Section 13. Subsection (3) of section 216.141, Florida
974 Statutes, is amended to read:
975 216.141 Budget system procedures; planning and programming

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976 by state agencies.—
977 (3) The Chief Financial Officer, as chief fiscal officer,
978 shall use the Financial Management Florida Accounting
979 Information Resource Subsystem developed pursuant to s.
980 215.94(2) for account purposes in the performance of and
981 accounting for all of his or her constitutional and statutory
982 duties and responsibilities. However, state agencies and the
983 judicial branch continue to be responsible for maintaining
984 accounting records necessary for effective management of their
985 programs and functions.
986 Section 14. Section 284.08, Florida Statutes, is amended
987 to read:
988 284.08 Purchase of insurance, excess insurance,
989 reinsurance, and services Reinsurance on excess coverage and
990 approval by Department of Management Services.—Notwithstanding
991 the requirements of s. 287.022(1), the Department of Financial
992 Services shall determine what property insurance excess coverage
993 is necessary and may purchase insurance, excess insurance, and
994 reinsurance as necessary to provide insurance coverages
995 authorized by this part thereon upon approval by the Department
996 of Management Services. The Department of Financial Services may
997 contract with an insurance or reinsurance broker to market the
998 insurance program and facilitate the purchase of insurance,
999 excess insurance, and reinsurance on behalf of the department.
1000 Section 15. Section 284.33, Florida Statutes, is amended

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1001 to read:
1002 284.33 Purchase of insurance, reinsurance, excess
1003 insurance, and services.—
1004 (1) Notwithstanding the requirements of s. 287.022(1), the
1005 Department of Financial Services is authorized to purchase
1006 provide insurance, specific excess insurance, and reinsurance
1007 aggregate excess insurance through the Department of Management
1008 Services, pursuant to the provisions of part I of chapter 287,
1009 as necessary to provide insurance coverages authorized by this
1010 part, consistent with market availability. The Department of
1011 Financial Services may contract with an insurance or reinsurance
1012 broker to market the insurance program and facilitate the
1013 purchase of insurance, excess insurance, and reinsurance on
1014 behalf of the department. However, The Department of Financial
1015 Services may directly purchase annuities by using a structured
1016 settlement insurance consulting firm selected by the department
1017 to assist in the settlement of claims being handled by the
1018 Division of Risk Management. The selection of the structured
1019 settlement insurance services consultant shall be made by using
1020 competitive sealed proposals. The consulting firm shall act as
1021 an agent of record for the department in procuring the best
1022 annuity products available to facilitate structured settlement
1023 of claims, considering price, insurer financial strength, and
1024 the best interests of the state risk management program.
1025 Purchase of annuities by the department using a structured

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1026 settlement method is excepted from competitive sealed bidding or
1027 proposal requirements. The Department of Financial Services is
1028 further authorized to purchase such risk management services,
1029 including, but not limited to, risk and claims control; safety
1030 management; and legal, investigative, and adjustment services,
1031 as may be required and pay claims. The department may contract
1032 with a service organization for such services and advance money
1033 to such service organization for deposit in a special checking
1034 account for paying claims made against the state under the
1035 provisions of this part. The special checking account shall be
1036 maintained in this state in a bank or savings association
1037 organized under the laws of this state or of the United States.
1038 The department may replenish such account as often as necessary
1039 upon the presentation by the service organization of
1040 documentation for payments of claims equal to the amount of the
1041 requested reimbursement.
1042 (2) Nothing contained in Chapter 287 may not shall be
1043 construed as requiring written agreements for health and mental
1044 health services or drugs in the examinations, diagnoses, or
1045 treatments of sick or injured employees or other benefits as
1046 required by the provisions of chapter 440.
1047 Section 16. Paragraph (a) of subsection (7) and paragraph
1048 (j) of subsection (12) of section 440.13, Florida Statutes, are
1049 amended to read:
1050 440.13 Medical services and supplies; penalty for

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1051 violations; limitations.—
1052 (7) UTILIZATION AND REIMBURSEMENT DISPUTES.—
1053 (a) Any health care provider who elects to contest the
1054 disallowance or adjustment of payment by a carrier under
1055 subsection (6) must, within 60 45 days after receipt of notice
1056 of disallowance or adjustment of payment, petition the
1057 department to resolve the dispute. The petitioner must serve, by
1058 the United States Postal Service certified mail or by common
1059 carrier with verifiable tracking methods, a copy of the petition
1060 on the carrier and on all affected parties listed on the notice
1061 of disallowance or adjustment by certified mail. The petition
1062 must be accompanied by all documents and records that support
1063 the allegations contained in the petition. Failure of a
1064 petitioner to submit such documentation to the department
1065 results in dismissal of the petition.
1066 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
1067 REIMBURSEMENT ALLOWANCES.—
1068 (j) In addition to establishing the uniform schedule of
1069 maximum reimbursement allowances, the panel shall:
1070 1. Take testimony, receive records, and collect data to
1071 evaluate the adequacy of the workers' compensation fee schedule,
1072 nationally recognized fee schedules and alternative methods of
1073 reimbursement to health care providers and health care
1074 facilities for inpatient and outpatient treatment and care.
1075 2. Survey health care providers and health care facilities

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1076 to determine the availability and accessibility of workers'
1077 compensation health care delivery systems for injured workers.
1078 3. Survey carriers to determine the estimated impact on
1079 carrier costs and workers' compensation premium rates by
1080 implementing changes to the carrier reimbursement schedule or
1081 implementing alternative reimbursement methods.
1082 4. Submit recommendations on or before January 15, 2031
1083 2017, and every 5 years biennially thereafter, to the President
1084 of the Senate and the Speaker of the House of Representatives on
1085 methods to improve the workers' compensation health care
1086 delivery system.
1087
1088 The department, as requested, shall provide data to the panel,
1089 including, but not limited to, utilization trends in the
1090 workers' compensation health care delivery system. The
1091 department shall provide the panel with an annual report
1092 regarding the resolution of medical reimbursement disputes and
1093 any actions pursuant to subsection (8). The department shall
1094 provide administrative support and service to the panel to the
1095 extent requested by the panel. The department may adopt rules
1096 pursuant to ss. 120.536(1) and 120.54 to implement this
1097 subsection. For prescription medication purchased under the
1098 requirements of this subsection, a dispensing practitioner shall
1099 not possess such medication unless payment has been made by the
1100 practitioner, the practitioner's professional practice, or the

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1101 practitioner's practice management company or employer to the
1102 supplying manufacturer, wholesaler, distributor, or drug
1103 repackager within 60 days of the dispensing practitioner taking
1104 possession of that medication.
1105 Section 17. Section 497.1411, Florida Statutes, is created
1106 to read:
1107 497.1411 Disqualification of applicants and licenses;
1108 penalties against licensees; rulemaking.—
1109 (1) For purposes of this section, the term "applicant"
1110 means an individual applying for licensure or relicensure under
1111 this chapter, or an officer, director, majority owner, partner,
1112 manager, or other person who manages or controls an entity
1113 applying for licensure or relicensure under this chapter.
1114 (2) An applicant who has been found guilty of or has
1115 pleaded guilty or nolo contendere to any of the following
1116 offenses, regardless of adjudication, is permanently barred from
1117 licensure under this chapter:
1118 (a) A felony of the first degree.
1119 (b) A felony involving conduct prohibited under chapter
1120 497, chapter 787, chapter 794, chapter 796, chapter 800, chapter
1121 825, chapter 827, or chapter 847.
1122 (c) A felony involving moral turpitude.
1123 (3) An applicant who has been found guilty of, or has
1124 entered a plea of guilty or nolo contendere to an offense not
1125 subject to the permanent bar under subsection (2), regardless of

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1126 adjudication, is subject to the following disqualifying periods:
1127 (a) A 10-year disqualifying period for any felony to which
1128 the permanent bar in subsection (2) does not apply.
1129 Notwithstanding subsection (4), an applicant who has completed
1130 at least one-half of the disqualifying period may apply for a
1131 probationary license for the remainder of the disqualifying
1132 period if, during that time, the applicant has not been found
1133 guilty of, or has not entered a plea of guilty or nolo
1134 contendere to, any offense.
1135 (b) A 5-year disqualifying period for all misdemeanors
1136 directly related to chapter 497.
1137 (4) The board shall adopt rules to administer this
1138 section. Such rules must provide additional disqualifying
1139 periods for applicants who have committed multiple criminal
1140 offenses and may provide additional factors for disqualification
1141 reasonably related to the applicant's criminal history. The
1142 rules must also establish mitigating and aggravating factors.
1143 However, mitigation may not reduce any disqualifying period to
1144 less than 5 years and may not be applied to reduce the 5-year
1145 disqualifying period provided in paragraph (3)(b).
1146 (5) For purposes of this section, a disqualifying period
1147 begins upon the applicant's final release from supervision or
1148 upon completion of the applicant's criminal sentence. The board
1149 may not approve issuance of a license to an applicant until the
1150 applicant provides proof that all related fines, court costs,

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1151 fees, and court-ordered restitution have been paid.
1152 (6) After the disqualifying period has expired, the burden
1153 is on the applicant to demonstrate to the board that he or she
1154 has been rehabilitated, does not pose a risk to the public, is
1155 fit and trustworthy to engage in business regulated by this
1156 chapter, and is otherwise qualified for licensure.
1157 (7) Notwithstanding subsections (2) and (3), an applicant
1158 who has been found guilty of, or has pleaded guilty or nolo
1159 contendere to, a crime in subsection (2) or subsection (3), and
1160 who has subsequently been granted a pardon or the restoration of
1161 civil rights pursuant to chapter 940 and s. 8, Art. IV of the
1162 State Constitution, or a pardon or the restoration of civil
1163 rights under the laws of another jurisdiction with respect to a
1164 conviction in that jurisdiction, is not barred or disqualified
1165 from licensure under this chapter; however, such a pardon or
1166 restoration of civil rights does not require the board to award
1167 such license.
1168 (8)(a) The board may grant an exemption from
1169 disqualification to any person disqualified from licensure under
1170 subsection (3) if:
1171 1. The applicant has paid in full any fee, fine, fund,
1172 lien, civil judgment, restitution, or cost of prosecution
1173 imposed by the court as part of the judgment and sentence for
1174 any disqualifying offense; and
1175 2. At least 2 years have elapsed since the applicant

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1176 completed or has been lawfully released from confinement,
1177 supervision, or any nonmonetary condition imposed by the court
1178 for a disqualifying offense.
1179 (b) For the board to grant an exemption under this
1180 subsection, the applicant must clearly and convincingly
1181 demonstrate that he or she would not pose a risk to persons or
1182 property if licensed under this chapter, evidence of which must
1183 include, but need not be limited to, facts and circumstances
1184 surrounding the disqualifying offense, the time that has elapsed
1185 since the offense, the nature of the offense and harm caused to
1186 the victim, the applicant's history before and after the
1187 offense, and any other evidence or circumstances indicating that
1188 the applicant will not present a danger if licensed or
1189 certified.
1190 (c) The board has discretion whether to grant or deny an
1191 exemption under this subsection. The board's decision is subject
1192 to chapter 120.
1193 (9) The disqualification periods provided in this section
1194 do not apply to the renewal of a license or to a new application
1195 for licensure if the applicant has an active license as of July
1196 1, 2026, and the applicable criminal history was considered by
1197 the board on the prior approval of any active license held by
1198 the applicant. This section does not affect any criminal history
1199 disclosure requirements of this chapter.
1200 Section 18. Subsection (9) and paragraph (c) of subsection

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1201 (10) of section 497.142, Florida Statutes, are amended to read:
1202 497.142 Licensing; fingerprinting and criminal background
1203 checks.—
1204 (9) If any applicant under this chapter has been, within
1205 the 10 years preceding the application under this chapter,
1206 convicted or found guilty of, or entered a plea of nolo
1207 contendere to, regardless of adjudication, any crime in any
1208 jurisdiction, the application may shall not be deemed complete
1209 until such time as the applicant provides such certified true
1210 copies of the court records evidencing the conviction, finding,
1211 or plea, as required in this section or as the licensing
1212 authority may by rule require.
1213 (10)
1214 (c) Crimes to be disclosed are:
1215 1. Any felony or misdemeanor, no matter when committed,
1216 that was directly or indirectly related to or involving any
1217 aspect of the practice or business of funeral directing,
1218 embalming, direct disposition, cremation, funeral or cemetery
1219 preneed sales, funeral establishment operations, cemetery
1220 operations, or cemetery monument or marker sales or
1221 installation.
1222 2. Any misdemeanor, no matter when committed, that was
1223 directly related to the practice or activities regulated under
1224 this chapter Any other felony not already disclosed under
1225 subparagraph 1. that was committed within the 20 years

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1226 immediately preceding the application under this chapter.
1227 3. Any other misdemeanor not already disclosed under
1228 subparagraph 2. which subparagraph 1. that was committed within
1229 the 5 years immediately preceding the application under this
1230 chapter.
1231 Section 19. Section 626.171, Florida Statutes, is amended
1232 to read:
1233 626.171 Application for license as an agent, customer
1234 representative, adjuster, or service representative, or
1235 reinsurance intermediary.—
1236 (1) The department may not issue a license as agent,
1237 customer representative, adjuster, or service representative, or
1238 reinsurance intermediary to any person except upon written
1239 application filed with the department, meeting the
1240 qualifications for the license applied for as determined by the
1241 department, and payment in advance of all applicable fees. The
1242 application must be made under the oath of the applicant and be
1243 signed by the applicant. An applicant may permit a third party
1244 to complete, submit, and sign an application on the applicant's
1245 behalf, but is responsible for ensuring that the information on
1246 the application is true and correct and is accountable for any
1247 misstatements or misrepresentations. The department shall accept
1248 the uniform application for resident and nonresident agent and
1249 adjuster licensing. The department may adopt revised versions of
1250 the uniform application by rule.

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1251 (2) In the application, the applicant must include all of
1252 the following shall set forth:
1253 (a) The applicant's His or her full name, age, social
1254 security number, residence address, business address, mailing
1255 address, contact telephone numbers, including a business
1256 telephone number, and e-mail address.
1257 (b) A statement indicating the method the applicant used
1258 or is using to meet any required prelicensing education,
1259 knowledge, experience, or instructional requirements for the
1260 type of license applied for.
1261 (c) Whether the applicant he or she has been refused or
1262 has voluntarily surrendered or has had suspended or revoked a
1263 license to solicit insurance by the department or by the
1264 supervising officials of any state.
1265 (d) Whether any insurer or any managing general agent
1266 claims the applicant is indebted under any agency contract or
1267 otherwise and, if so, the name of the claimant, the nature of
1268 the claim, and the applicant's defense thereto, if any.
1269 (e) Proof that the applicant meets the requirements for
1270 the type of license for which he or she is applying.
1271 (f) The applicant's gender (male or female).
1272 (g) The applicant's native language.
1273 (h) The highest level of education achieved by the
1274 applicant.
1275 (i) The applicant's race or ethnicity (African American,

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1276 white, American Indian, Asian, Hispanic, or other).
1277 (j) Such other or additional information as the department
1278 may deem proper to enable it to determine the character,
1279 experience, ability, and other qualifications of the applicant
1280 to hold himself or herself out to the public as an insurance
1281 representative.
1282
1283 However, the application must contain a statement that an
1284 applicant is not required to disclose his or her race or
1285 ethnicity, gender, or native language, that he or she will not
1286 be penalized for not doing so, and that the department will use
1287 this information exclusively for research and statistical
1288 purposes and to improve the quality and fairness of the
1289 examinations. The department may shall make provisions for
1290 applicants to voluntarily submit their cellular telephone
1291 numbers as part of the application process solely on a voluntary
1292 basis only for the purpose of two-factor authentication of
1293 secure login credentials only.
1294 (3) Each application must be accompanied by payment of any
1295 applicable fee.
1296 (4) An applicant for a license issued by the department
1297 under this chapter must submit a set of the individual
1298 applicant's fingerprints, or, if the applicant is not an
1299 individual, a set of the fingerprints of the sole proprietor,
1300 majority owner, partners, officers, and directors, to the

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1301 department and must pay the fingerprint processing fee set forth
1302 in s. 624.501. Fingerprints must be processed in accordance with
1303 s. 624.34 and used to investigate the applicant's qualifications
1304 pursuant to s. 626.201. The fingerprints must be taken by a law
1305 enforcement agency or other department-approved entity. The
1306 department may not approve an application for licensure as an
1307 agent, customer service representative, adjuster, or service
1308 representative, or reinsurance intermediary if fingerprints have
1309 not been submitted.
1310 (5) The application for license filing fee prescribed in
1311 s. 624.501 is not subject to refund.
1312 (6) Members of the United States Armed Forces and their
1313 spouses, and veterans of the United States Armed Forces who have
1314 separated from service within 24 months before application for
1315 licensure, are exempt from the application filing fee prescribed
1316 in s. 624.501. Qualified individuals must provide a copy of a
1317 military identification card, military dependent identification
1318 card, military service record, military personnel file, veteran
1319 record, discharge paper or separation document that indicates
1320 such members are currently in good standing or such veterans
1321 were honorably discharged.
1322 (7) Pursuant to the federal Personal Responsibility and
1323 Work Opportunity Reconciliation Act of 1996, each party is
1324 required to provide his or her social security number in
1325 accordance with this section. Disclosure of social security

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1326 numbers obtained through this requirement must be limited to the
1327 purpose of administration of the Title IV-D program for child
1328 support enforcement.
1329 Section 20. Paragraph (c) of subsection (2) of section
1330 626.292, Florida Statutes, is amended to read:
1331 626.292 Transfer of license from another state.—
1332 (2) To qualify for a license transfer, an individual
1333 applicant must meet the following requirements:
1334 (c) The individual must submit a completed application for
1335 this state which is received by the department within 90 days
1336 after the date the individual became a resident of this state,
1337 along with payment of the applicable fees set forth in s.
1338 624.501 and submission of the following documents:
1339 1. A certification issued by the appropriate official of
1340 the applicant's home state identifying the type of license and
1341 lines of authority under the license and stating that, at the
1342 time the license from the home state was canceled, the applicant
1343 was in good standing in that state or that the state's Producer
1344 Database records, maintained by the National Association of
1345 Insurance Commissioners, its affiliates, or subsidiaries,
1346 indicate that the agent or all-lines adjuster is or was licensed
1347 in good standing for the line of authority requested. An
1348 applicant may hold a resident license in another state for 30
1349 days after the Florida resident license has been issued to
1350 facilitate the transfer of licensure between states.

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1351 2. A set of the applicant's fingerprints in accordance
1352 with s. 626.171(4).
1353 Section 21. Subsection (1) of section 626.611, Florida
1354 Statutes, is amended to read:
1355 626.611 Grounds for compulsory refusal, suspension, or
1356 revocation of agent's, title agency's, adjuster's, customer
1357 representative's, service representative's, or managing general
1358 agent's license or appointment.—
1359 (1) The department shall require license reexamination,
1360 deny an application for, suspend, revoke, or refuse to renew or
1361 continue the license or appointment of any applicant, agent,
1362 title agency, adjuster, customer representative, service
1363 representative, or managing general agent, and it shall suspend
1364 or revoke the eligibility to hold a license or appointment of
1365 any such person, if it finds that as to the applicant, licensee,
1366 or appointee any one or more of the following applicable grounds
1367 exist:
1368 (a) Lack of one or more of the qualifications for the
1369 license or appointment as specified in this code.
1370 (b) Material misstatement, misrepresentation, or fraud in
1371 obtaining the license or appointment or in attempting to obtain
1372 the license or appointment.
1373 (c) Failure to pass to the satisfaction of the department
1374 any examination required under this code, including cheating on
1375 an examination required for licensure or violating test center

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1376 or examination procedures published orally, in writing, or
1377 electronically at the test site by authorized representatives of
1378 the examination program administrator.
1379 (d) If the license or appointment is willfully used, or to
1380 be used, to circumvent any of the requirements or prohibitions
1381 of this code.
1382 (e) Willful misrepresentation of any insurance policy or
1383 annuity contract or willful deception with regard to any such
1384 policy or contract, done either in person or by any form of
1385 dissemination of information or advertising.
1386 (f) If, as an adjuster, or agent licensed and appointed to
1387 adjust claims under this code, he or she has materially
1388 misrepresented to an insured or other interested party the terms
1389 and coverage of an insurance contract with intent and for the
1390 purpose of effecting settlement of claim for loss or damage or
1391 benefit under such contract on less favorable terms than those
1392 provided in and contemplated by the contract.
1393 (g) Demonstrated lack of fitness or trustworthiness to
1394 engage in the business of insurance.
1395 (h) Demonstrated lack of reasonably adequate knowledge and
1396 technical competence to engage in the transactions authorized by
1397 the license or appointment.
1398 (i) Fraudulent or dishonest practices in the conduct of
1399 business under the license or appointment.
1400 (j) Misappropriation, conversion, or unlawful withholding

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1401 of moneys belonging to insurers or insureds or beneficiaries or
1402 to others and received in conduct of business under the license
1403 or appointment.
1404 (k) Unlawfully rebating, attempting to unlawfully rebate,
1405 or unlawfully dividing or offering to divide his or her
1406 commission with another.
1407 (l) Having obtained or attempted to obtain, or having used
1408 or using, a license or appointment as agent or customer
1409 representative for the purpose of soliciting or handling
1410 "controlled business" as defined in s. 626.730 with respect to
1411 general lines agents, s. 626.784 with respect to life agents,
1412 and s. 626.830 with respect to health agents.
1413 (m) Willful failure to comply with, or willful violation
1414 of, any proper order or rule of the department or willful
1415 violation of any provision of this code.
1416 (n) Having been found guilty of or having pleaded guilty
1417 or nolo contendere to a misdemeanor directly related to the
1418 financial services business, any felony, or any crime punishable
1419 by imprisonment of 1 year or more under the law of the United
1420 States of America or of any state thereof or under the law of
1421 any other country, without regard to whether a judgment of
1422 conviction has been entered by the court having jurisdiction of
1423 such cases.
1424 (o) Fraudulent or dishonest practice in submitting or
1425 aiding or abetting any person in the submission of an

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1426 application for workers' compensation coverage under chapter 440
1427 containing false or misleading information as to employee
1428 payroll or classification for the purpose of avoiding or
1429 reducing the amount of premium due for such coverage.
1430 (p) Sale of an unregistered security that was required to
1431 be registered, pursuant to chapter 517.
1432 (q) In transactions related to viatical settlement
1433 contracts as defined in s. 626.9911:
1434 1. Commission of a fraudulent or dishonest act.
1435 2. No longer meeting the requirements for initial
1436 licensure.
1437 3. Having received a fee, commission, or other valuable
1438 consideration for his or her services with respect to viatical
1439 settlements that involved unlicensed viatical settlement
1440 providers or persons who offered or attempted to negotiate on
1441 behalf of another person a viatical settlement contract as
1442 defined in s. 626.9911 and who were not licensed life agents.
1443 4. Dealing in bad faith with viators.
1444 Section 22. Section 626.621, Florida Statutes, is amended
1445 to read:
1446 626.621 Grounds for discretionary refusal, suspension, or
1447 revocation of agent's, adjuster's, customer representative's,
1448 service representative's, or managing general agent's license or
1449 appointment.—The department may, in its discretion, require a
1450 license reexamination, deny an application for, suspend, revoke,

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1451 or refuse to renew or continue the license or appointment of any
1452 applicant, agent, adjuster, customer representative, service
1453 representative, or managing general agent, and it may suspend or
1454 revoke the eligibility to hold a license or appointment of any
1455 such person, if it finds that as to the applicant, licensee, or
1456 appointee any one or more of the following applicable grounds
1457 exist under circumstances for which such denial, suspension,
1458 revocation, or refusal is not mandatory under s. 626.611:
1459 (1) Any cause for which issuance of the license or
1460 appointment could have been refused had it then existed and been
1461 known to the department.
1462 (2) Violation of any provision of this code or of any
1463 other law applicable to the business of insurance in the course
1464 of dealing under the license or appointment.
1465 (3) Violation of any lawful order or rule of the
1466 department, commission, or office.
1467 (4) Failure or refusal, upon demand, to pay over to any
1468 insurer he or she represents or has represented any money coming
1469 into his or her hands belonging to the insurer.
1470 (5) Violation of the provision against twisting, as
1471 defined in s. 626.9541(1)(l).
1472 (6) In the conduct of business under the license or
1473 appointment, engaging in unfair methods of competition or in
1474 unfair or deceptive acts or practices, as prohibited under part
1475 IX of this chapter, or having otherwise shown himself or herself

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1476 to be a source of injury or loss to the public.
1477 (7) Willful overinsurance of any property or health
1478 insurance risk.
1479 (8) If a life agent, violation of the code of ethics.
1480 (9) Cheating on an examination required for licensure or
1481 violating test center or examination procedures published
1482 orally, in writing, or electronically at the test site by
1483 authorized representatives of the examination program
1484 administrator. Communication of test center and examination
1485 procedures must be clearly established and documented.
1486 (10) Failure to inform the department in writing within 30
1487 days after pleading guilty or nolo contendere to, or being
1488 convicted or found guilty of, any felony or a crime punishable
1489 by imprisonment of 1 year or more under the law of the United
1490 States or of any state thereof, or under the law of any other
1491 country without regard to whether a judgment of conviction has
1492 been entered by the court having jurisdiction of the case.
1493 (11) Knowingly aiding, assisting, procuring, advising, or
1494 abetting any person in the violation of or to violate a
1495 provision of the insurance code or any order or rule of the
1496 department, commission, or office.
1497 (12) Has been the subject of or has had a license, permit,
1498 appointment, registration, or other authority to conduct
1499 business subject to any decision, finding, injunction,
1500 suspension, prohibition, revocation, denial, judgment, final

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1501 agency action, or administrative order by any court of competent
1502 jurisdiction, administrative law proceeding, state agency,
1503 federal agency, national securities, commodities, or option
1504 exchange, or national securities, commodities, or option
1505 association involving a violation of any federal or state
1506 securities or commodities law or any rule or regulation adopted
1507 thereunder, or a violation of any rule or regulation of any
1508 national securities, commodities, or options exchange or
1509 national securities, commodities, or options association.
1510 (13) Failure to comply with any civil, criminal, or
1511 administrative action taken by the child support enforcement
1512 program under Title IV-D of the Social Security Act, 42 U.S.C.
1513 ss. 651 et seq., to determine paternity or to establish, modify,
1514 enforce, or collect support.
1515 (14) Directly or indirectly accepting any compensation,
1516 inducement, or reward from an inspector for the referral of the
1517 owner of the inspected property to the inspector or inspection
1518 company. This prohibition applies to an inspection intended for
1519 submission to an insurer in order to obtain property insurance
1520 coverage or establish the applicable property insurance premium.
1521 (15) Denial, suspension, or revocation of, or any other
1522 adverse administrative action against, a license to practice or
1523 conduct any regulated profession, business, or vocation by this
1524 state, any other state, any nation, any possession or district
1525 of the United States, any court, or any lawful agency thereof.

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1526 (16) Taking an action that allows the personal financial
1527 or medical information of a consumer or customer to be made
1528 available or accessible to the general public, regardless of the
1529 format in which the record is stored.
1530 (17) Initiating in-person or telephone solicitation after
1531 9 p.m. or before 8 a.m. local time of the prospective customer
1532 unless requested by the prospective customer.
1533 (18) Cancellation of the applicant's, licensee's, or
1534 appointee's resident license in a state other than Florida.
1535 Section 23. Subsection (1) of section 626.731, Florida
1536 Statutes, is amended to read:
1537 626.731 Qualifications for general lines agent's license.—
1538 (1) The department may shall not grant or issue a license
1539 as general lines agent to any individual found by it to be
1540 untrustworthy or incompetent or who does not meet each all of
1541 the following qualifications:
1542 (a) The applicant is a natural person at least 18 years of
1543 age.
1544 (b) The applicant is a United States citizen or legal
1545 alien who possesses work authorization from the United States
1546 Bureau of Citizenship and Immigration Services and is a bona
1547 fide resident of this state. An individual who is a bona fide
1548 resident of this state shall be deemed to meet the residence
1549 requirement of this paragraph, notwithstanding the existence at
1550 the time of application for license of a license in his or her

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1551 name on the records of another state as a resident licensee of
1552 such other state, if the applicant furnishes a letter of
1553 clearance satisfactory to the department that the resident
1554 licenses have been canceled or changed to a nonresident basis
1555 and that he or she is in good standing.
1556 (c) The applicant's place of business will be located in
1557 this state and he or she will be actively engaged in the
1558 business of insurance and will maintain a place of business, the
1559 location of which is identifiable by and accessible to the
1560 public.
1561 (d) The license is not being sought for the purpose of
1562 writing or handling controlled business, in violation of s.
1563 626.730.
1564 (e) The applicant is qualified as to knowledge,
1565 experience, or instruction in the business of insurance and
1566 meets the requirements provided in s. 626.732.
1567 (f) The applicant has passed any required examination for
1568 license required under s. 626.221.
1569 Section 24. Subsection (2) of section 626.785, Florida
1570 Statutes, is amended to read:
1571 626.785 Qualifications for license.—
1572 (2) An individual who is a bona fide resident of this
1573 state shall be deemed to meet the residence requirement of
1574 paragraph (1)(b), notwithstanding the existence at the time of
1575 application for license of a license in his or her name on the

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1576 records of another state as a resident licensee of such other
1577 state, if the applicant furnishes a letter of clearance
1578 satisfactory to the department that the resident licenses have
1579 been canceled or changed to a nonresident basis and that he or
1580 she is in good standing.
1581 Section 25. Section 626.831, Florida Statutes, is amended
1582 to read:
1583 626.831 Qualifications for license.—
1584 (1) The department may shall not grant or issue a license
1585 as health agent as to any individual found by it to be
1586 untrustworthy or incompetent, or who does not meet all of the
1587 following qualifications:
1588 (1)(a) Is Must be a natural person of at least 18 years of
1589 age.
1590 (2)(b) Is Must be a United States citizen or legal alien
1591 who possesses work authorization from the United States Bureau
1592 of Citizenship and Immigration Services and is a bona fide
1593 resident of this state.
1594 (3)(c) Is Must not be an employee of the United States
1595 Department of Veterans Affairs or state service office, as
1596 referred to in s. 626.833.
1597 (4)(d) Has taken Must take and passed pass any examination
1598 for license required under s. 626.221.
1599 (5)(e) Is Must be qualified as to knowledge, experience,
1600 or instruction in the business of insurance and meets meet the

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1601 requirements relative thereto provided in s. 626.8311.
1602 (2) An individual who is a bona fide resident of this
1603 state shall be deemed to meet the residence requirement of
1604 paragraph (1)(b), notwithstanding the existence at the time of
1605 application for license of a license in his or her name on the
1606 records of another state as a resident licensee of such other
1607 state, if the applicant furnishes a letter of clearance
1608 satisfactory to the department that the resident licenses have
1609 been canceled or changed to a nonresident basis and that he or
1610 she is in good standing.
1611 Section 26. Subsection (24) is added to section 626.854,
1612 Florida Statutes, to read:
1613 626.854 "Public adjuster" defined; prohibitions.—The
1614 Legislature finds that it is necessary for the protection of the
1615 public to regulate public insurance adjusters and to prevent the
1616 unauthorized practice of law.
1617 (24) A public adjuster, public adjuster apprentice, or
1618 public adjusting firm must respond with specific information to
1619 a written or electronic request for claims status from a
1620 claimant or insured or their designated representative within 14
1621 days after the date of the request and shall document in the
1622 file the response or information provided.
1623 Section 27. Subsection (4) of section 648.34, Florida
1624 Statutes, is amended to read:
1625 648.34 Bail bond agents; qualifications.—

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1626 (4) The applicant shall furnish, with his or her
1627 application, a complete set of his or her fingerprints in
1628 accordance with s. 626.171(4) and a recent credential-sized,
1629 fullface photograph of the applicant. The department may shall
1630 not authorize an applicant to take the required examination
1631 until the department has received a report from the Department
1632 of Law Enforcement and the Federal Bureau of Investigation
1633 relative to the existence or nonexistence of a criminal history
1634 report based on the applicant's fingerprints.
1635 Section 28. Subsection (2) of section 648.382, Florida
1636 Statutes, is amended to read:
1637 648.382 Appointment of bail bond agents and bail bond
1638 agencies; effective date of appointment.—
1639 (2) Before any appointment, an appropriate officer or
1640 official of the appointing insurer must obtain all of the
1641 following information submit:
1642 (a) A certified statement or affidavit to the department
1643 stating what investigation has been made concerning the proposed
1644 appointee and the proposed appointee's background and the
1645 appointing person's opinion to the best of his or her knowledge
1646 and belief as to the moral character and reputation of the
1647 proposed appointee. In lieu of such certified statement or
1648 affidavit, by authorizing the effectuation of an appointment for
1649 a licensee, the appointing entity certifies to the department
1650 that such investigation has been made and that the results of

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1651 the investigation and the appointing person's opinion is that
1652 the proposed appointee is a person of good moral character and
1653 reputation and is fit to engage in the bail bond business.;
1654 (b) An affidavit under oath on a form prescribed by the
1655 department, signed by the proposed appointee, stating that
1656 premiums are not owed to any insurer and that the appointee will
1657 discharge all outstanding forfeitures and judgments on bonds
1658 previously written. If the appointee does not satisfy or
1659 discharge such forfeitures or judgments, the former insurer
1660 shall file a notice, with supporting documents, with the
1661 appointing insurer, the former agent or agency, and the
1662 department, stating under oath that the licensee has failed to
1663 timely satisfy forfeitures and judgments on bonds written and
1664 that the insurer has satisfied the forfeiture or judgment from
1665 its own funds. Upon receipt of such notification and supporting
1666 documents, the appointing insurer shall immediately cancel the
1667 licensee's appointment. The licensee may be reappointed only
1668 upon certification by the former insurer that all forfeitures
1669 and judgments on bonds written by the licensee have been
1670 discharged. The appointing insurer or former agent or agency
1671 may, within 10 days, file a petition with the department seeking
1672 relief from this paragraph. Filing of the petition stays the
1673 duty of the appointing insurer to cancel the appointment until
1674 the department grants or denies the petition.;
1675 (c) Any other information that the department reasonably

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1676 requires concerning the proposed appointee.; and
1677 (d) Effective January 1, 2025, a certification that the
1678 appointing entity obtained from each appointee the following
1679 sworn statement:
1680
1681 Pursuant to section 648.382(2)(b), Florida Statutes, I
1682 do solemnly swear that I owe no premium to any insurer
1683 or agency and that I will discharge all outstanding
1684 forfeitures and judgments on bonds that have been
1685 previously written. I acknowledge that failure to do
1686 this will result in my active appointments being
1687 canceled.
1688
1689 An appointed bail bond agency must have the attestation under
1690 this paragraph signed by its owner.
1691 Section 29. Section 717.001, Florida Statutes, is amended
1692 to read:
1693 717.001 Short title.—This chapter may be cited as the
1694 "Florida Disposition of Abandoned Personal Unclaimed Property
1695 Act."
1696 Section 30. Present subsections (1) through (4), (5)
1697 through (8), (10) through (13), (15) through (20), (21), (22)
1698 through (28), and (31), (32), and (33) of section 717.101,
1699 Florida Statutes, are redesignated as subsections (4) through
1700 (7), (9) through (12), (13) through (16), (17) through (22),

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1701 (24), (26) through (32), and (33), (34), and (35), respectively,
1702 new subsections (1), (2), (3), (8), (23), and (25) are added to
1703 that section, and present subsections (1), (2), (5), (6), (8),
1704 (9), (12), (14), (16), (18), (19), (20), (22), (25), (29), and
1705 (30) of that section are amended, to read:
1706 717.101 Definitions.—As used in this chapter, unless the
1707 context otherwise requires:
1708 (1) "Abandoned property" means property held by a holder
1709 for which all of the following are true:
1710 (a) The apparent owner has shown no activity or indication
1711 of interest for the duration of the applicable dormancy period
1712 established under this chapter.
1713 (b) The holder has complied with the due diligence
1714 requirements set forth in this chapter, including the issuance
1715 of notice to the apparent owner, and has received no response or
1716 contact sufficient to demonstrate continued interest in the
1717 property.
1718 (2) "Abandoned Property Purchase Agreement" means the form
1719 adopted by the department pursuant to s. 717.135 which must be
1720 used, without modification or amendment, by a claimant
1721 representative to purchase abandoned property from an owner.
1722 (3) "Abandoned Property Recovery Agreement" means the form
1723 adopted by the department pursuant to s. 717.135 which must be
1724 used, without modification or amendment, by a claimant
1725 representative to obtain consent and authority to recover

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1726 abandoned property on behalf of a person.
1727 (4)(1) "Aggregate" means the amounts reported for owners
1728 of abandoned unclaimed property of less than $10 or where there
1729 is no name for the individual or entity listed on the holder's
1730 records, regardless of the amount to be reported.
1731 (5)(2) "Apparent owner" means the person whose name
1732 appears on the records of the holder as the owner of the
1733 abandoned property, but whose status as the true owner entitled
1734 to receive the property may be subject to change due to the
1735 passage of time or changes in circumstances person entitled to
1736 property held, issued, or owing by the holder.
1737 (8) "Authorized representative" means a person or entity
1738 legally empowered to act on behalf of the apparent owner or his
1739 or estate, including, but not limited to, an agent, a fiduciary,
1740 a personal representative, a trustee, a legal heir, a guardian,
1741 or any other individual or entity authorized by law or
1742 agreement.
1743 (9)(5) "Banking or financial organization" means any and
1744 all banks, trust companies, private bankers, savings banks,
1745 industrial banks, safe-deposit companies, savings and loan
1746 associations, credit unions, savings associations, banking
1747 organizations, international bank agencies, cooperative banks,
1748 building and loan associations, and investment companies in this
1749 state, organized under or subject to the laws of this state or
1750 of the United States, including entities organized under 12

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1751 U.S.C. s. 611, but does not include federal reserve banks. The
1752 term also includes any corporation, business association, or
1753 other organization that:
1754 (a) Is a wholly or partially owned subsidiary of any
1755 banking, banking corporation, or bank holding company that
1756 performs any or all of the functions of a banking organization;
1757 or
1758 (b) Performs functions pursuant to the terms of a contract
1759 with any banking organization.
1760 (10)(6) "Business association" means any for-profit or
1761 nonprofit corporation other than a public corporation; joint
1762 stock company; investment company; unincorporated association or
1763 association of two or more individuals for business purposes,
1764 whether or not for profit; partnership; joint venture; limited
1765 liability company; sole proprietorship; business trust; trust
1766 company; land bank; safe-deposit company; safekeeping
1767 depository; banking or financial organization; insurance
1768 company; federally chartered entity; utility company; transfer
1769 agent; or other business entity, whether or not for profit.
1770 (12)(8) "Claimant Claimant's representative" means an
1771 attorney who is a member in good standing with of The Florida
1772 Bar, a certified public accountant licensed in this state, or a
1773 private investigator who is duly licensed to do business in this
1774 the state, who is registered with the department, and authorized
1775 to file claims on behalf of persons with the department by the

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1776 claimant to claim unclaimed property on the claimant's behalf.
1777 The term does not include a person acting in a representative or
1778 fiduciary capacity, such as a personal representative, guardian,
1779 trustee, or attorney, whose representation is not contingent
1780 upon the discovery or location of abandoned unclaimed property,
1781 and it expressly excludes locators, who engage in locating
1782 owners of abandoned property for a fee but are not registered
1783 with the department; provided, however, that any agreement
1784 entered into for the purpose of evading s. 717.135 is invalid
1785 and unenforceable.
1786 (9) "Credit balance" means an account balance in the
1787 customer's favor.
1788 (15)(12) "Due diligence" means the use of reasonable and
1789 prudent methods under particular circumstances to locate
1790 apparent owners of presumed abandoned property inactive accounts
1791 using the taxpayer identification number or social security
1792 number, if known, which may include, but are not limited to,
1793 using a nationwide database, cross-indexing with other records
1794 of the holder, mailing to the last known address unless the last
1795 known address is known to be inaccurate, providing written
1796 notice as described in this chapter by electronic mail if an
1797 apparent owner has elected such delivery, or engaging a licensed
1798 agency or company capable of conducting such search and
1799 providing updated addresses.
1800 (14) "Financial organization" means a savings association,

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1801 savings and loan association, savings bank, industrial bank,
1802 bank, banking organization, trust company, international bank
1803 agency, cooperative bank, building and loan association, or
1804 credit union.
1805 (18)(16) "Holder" means a person who is in possession of
1806 property belonging to another or who owes a debt or an
1807 obligation to another person, including, but not limited to,
1808 financial institutions, insurance companies, corporations,
1809 partnerships, fiduciaries, and government agencies:
1810 (a) A person who is in possession or control or has
1811 custody of property or the rights to property belonging to
1812 another; is indebted to another on an obligation; or is
1813 obligated to hold for the account of, or to deliver or pay to,
1814 the owner, property subject to this chapter; or
1815 (b) A trustee in case of a trust.
1816 (20)(18) "Intangible property" includes, by way of
1817 illustration and not limitation:
1818 (a) Moneys, checks, virtual currency, drafts, deposits,
1819 interest, dividends, and income.
1820 (b) Credit balances, customer overpayments, security
1821 deposits and other instruments as defined by chapter 679,
1822 refunds, unpaid wages, unused airline tickets, and unidentified
1823 remittances.
1824 (c) Stocks, and other intangible ownership interests in
1825 business associations except for:

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1826 1. A non-freely transferable security; or
1827 2. A security that is subject to a lien, legal hold, or
1828 restriction evidenced on the records of the holder or imposed by
1829 operation of law, if the lien, legal hold, or restriction
1830 restricts the holder's or owner's ability to receive, transfer,
1831 sell, or otherwise negotiate the security.
1832 (d) Moneys deposited to redeem stocks, bonds, bearer
1833 bonds, original issue discount bonds, coupons, and other
1834 securities, or to make distributions.
1835 (e) Amounts due and payable under the terms of insurance
1836 policies.
1837 (f) Amounts distributable from a trust or custodial fund
1838 established under a plan to provide any health, welfare,
1839 pension, vacation, severance, retirement, death, stock purchase,
1840 profit sharing, employee savings, supplemental unemployment
1841 insurance, or similar benefit.
1842 (21)(19) "Last known address" means a description of the
1843 location of the apparent owner sufficient for the purpose of the
1844 delivery of mail. For the purposes of identifying, reporting,
1845 and remitting property to the department which is presumed to be
1846 unclaimed, the term "last known address" includes any partial
1847 description of the location of the apparent owner sufficient to
1848 establish the apparent owner was a resident of this state at the
1849 time of last contact with the apparent owner or at the time the
1850 property became due and payable.

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1851 (22)(20) "Lawful charges" means charges against the
1852 property or the account in which the property is held dormant
1853 accounts that are authorized by statute for the purpose of
1854 offsetting the costs of maintaining the property or the account
1855 in which the property is held dormant account.
1856 (23) "Locator" means a private individual or business that
1857 locates owners of abandoned property in exchange for a fee,
1858 typically a percentage of the recovered property. Locators are
1859 not employees or agents of the state and are not registered with
1860 the department.
1861 (25) "Non-freely transferable security" means a security
1862 that cannot be delivered to the administrator by the Depository
1863 Trust Clearing Corporation or similar custodian of securities
1864 providing post-trade clearing and settlement services to
1865 financial markets or cannot be delivered because there is no
1866 agent to effect transfer. The term includes a worthless
1867 security.
1868 (26)(22) "Owner" means the a person, or the person's legal
1869 representative, entitled to receive or having a legal or
1870 equitable interest in the abandoned property. An owner
1871 establishes his or her entitlement by filing a valid claim with
1872 the department pursuant or claim against property subject to
1873 this chapter; a depositor in the case of a deposit; a
1874 beneficiary in the case of a trust or a deposit in trust; or a
1875 payee in the case of a negotiable instrument or other intangible

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1876 property.
1877 (29)(25) "Record" means information that is captured or
1878 maintained in any format, including written, printed,
1879 electronic, audio, visual, or other forms, and that can be made
1880 perceptible or understandable to a person, either directly or
1881 through technological means, including assistive technologies
1882 inscribed on a tangible medium or that is stored in an
1883 electronic or other medium and is retrievable in perceivable
1884 form.
1885 (29) "Unclaimed Property Purchase Agreement" means the
1886 form adopted by the department pursuant to s. 717.135 which must
1887 be used, without modification or amendment, by a claimant's
1888 representative to purchase unclaimed property from an owner.
1889 (30) "Unclaimed Property Recovery Agreement" means the
1890 form adopted by the department pursuant to s. 717.135 which must
1891 be used, without modification or amendment, by a claimant's
1892 representative to obtain an owner's consent and authority to
1893 recover unclaimed property on the owner's behalf.
1894 Section 31. Section 717.102, Florida Statutes, is amended
1895 to read:
1896 717.102 Property presumed abandoned unclaimed; general
1897 rule.—
1898 (1) Except as otherwise provided by this chapter, all
1899 intangible property, including any income or increment thereon
1900 less any lawful charges, that is held, issued, or owing in the

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1901 ordinary course of the holder's business and for which the
1902 apparent owner or authorized representative fails to demonstrate
1903 continued interest for more than the applicable dormancy period
1904 prescribed by this chapter shall be presumed abandoned claim
1905 such property for more than 5 years after the property becomes
1906 payable or distributable is presumed unclaimed, except as
1907 otherwise provided by this chapter. Unless otherwise specified
1908 by law, the dormancy period shall be 5 years from the date the
1909 property becomes payable or distributable. For the purposes of
1910 this chapter, property shall be considered payable or
1911 distributable once the holder's obligation to pay or deliver the
1912 property arises, regardless of whether the apparent owner or
1913 authorized representative has failed to demand or to present
1914 documents required to receive payment.
1915 (2) Property is payable or distributable for the purpose
1916 of this chapter notwithstanding the owner's failure to make
1917 demand or to present any instrument or document required to
1918 receive payment.
1919 (3) A presumption that property is abandoned may be
1920 unclaimed is rebutted by the affirmative demonstration of
1921 continued interest by the apparent owner or authorized
1922 representative an apparent owner's expression of interest in the
1923 property. Such demonstration An owner's expression of continued
1924 interest in property includes, but is not limited to, any of the
1925 following:

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1926 (a) A record communicated by the apparent owner or
1927 authorized representative to the holder or its agent of the
1928 holder concerning the property or the account in which the
1929 property is held.;
1930 (b) An oral communication by the apparent owner or
1931 authorized representative to the holder or its agent of the
1932 holder concerning the property or the account in which the
1933 property is held, if the holder or its agent contemporaneously
1934 records makes and preserves evidence a record of the fact of the
1935 apparent owner's communication.;
1936 (c) Presentment of a check or other instrument for of
1937 payment of a dividends dividend, interest payment, or other
1938 distributions related to the property. distribution, with
1939 respect to an account, underlying security, or interest in a
1940 business association;
1941 (d) Any account activity initiated directed by an apparent
1942 owner or authorized representative in the account in which the
1943 property is held, including accessing the account or directing
1944 changes to information concerning the account, or to the amount
1945 or type of property held, excluding routine automatic
1946 transactions previously authorized, a direction by the apparent
1947 owner to increase, decrease, or otherwise change the amount or
1948 type of property held in the account.;
1949 (e) Any A deposit into or withdrawal from the property or
1950 the an account in which the property is held at a financial

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1951 organization, excluding an automatic deposits, withdrawals, or
1952 reinvestments deposit or withdrawal previously authorized by the
1953 apparent owner or authorized representative. an automatic
1954 reinvestment of dividends or interest, which does not constitute
1955 an expression of interest; or
1956 (f) Any other action by the apparent owner or authorized
1957 representative which reasonably demonstrates to the holder that
1958 the apparent owner or authorized representative is aware of and
1959 maintains an interest in knows that the property exists.
1960 (3)(4) If a holder learns or receives confirmation of an
1961 apparent owner's death, the property shall be presumed abandoned
1962 unclaimed 2 years after the date of death, unless an authorized
1963 representative makes an affirmative demonstration a fiduciary
1964 appointed to represent the estate of the apparent owner has made
1965 an expression of interest in the property before the expiration
1966 of the 2-year period. This subsection may not be construed to
1967 extend the otherwise applicable dormancy period prescribed by
1968 this chapter.
1969 Section 32. Section 717.103, Florida Statutes, is amended
1970 to read:
1971 717.103 General rules for taking custody of intangible
1972 abandoned unclaimed property.—Unless otherwise provided in this
1973 chapter or by other statute of this state, intangible property
1974 is subject to the custody of the department as abandoned
1975 unclaimed property when if the conditions leading to a

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1976 presumption that the property is abandoned unclaimed as
1977 described in ss. 717.102 and 717.105-717.116 are satisfied and
1978 the holder has fulfilled all required due diligence obligations
1979 without receiving any response or claim from the apparent owner,
1980 and one or more of the following criteria apply:
1981 (1) The last known address, as shown on the records of the
1982 holder, of the apparent owner is in this state.;
1983 (2) The records of the holder do not identify the name of
1984 the apparent owner, but do reflect the identity of the person
1985 entitled to the property, and it is established that the last
1986 known address of the apparent owner person entitled to the
1987 property is in this state.;
1988 (3) The records of the holder do not reflect the last
1989 known address of the apparent owner, but and it is established
1990 that either of the following conditions apply:
1991 (a) The last known address of the apparent owner person
1992 entitled to the property is in this state.; or
1993 (b) The holder is domiciled in this state, a domiciliary
1994 or is a government entity or governmental subdivision or agency
1995 of this state, and has not previously paid the property to the
1996 state of the last known address of the apparent owner. or other
1997 person entitled to the property;
1998 (4) The last known address, as shown on the records of the
1999 holder, of the apparent owner or other person entitled to the
2000 property is in a jurisdiction state that does not have

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2001 applicable provide by law for the escheat, abandoned, or
2002 unclaimed property laws custodial taking of the property, or its
2003 escheat or unclaimed property law is not applicable to the
2004 property, and the holder is domiciled in this state a
2005 domiciliary or is a government entity or governmental
2006 subdivision or agency of this state.;
2007 (5) The last known address, as shown on the records of the
2008 holder, of the apparent owner is in a foreign nation and the
2009 holder is domiciled in this state a domiciliary or is a
2010 government entity or governmental subdivision or agency of this
2011 state.; or
2012 (6) The transaction out of which the property arose
2013 occurred in this state, and both of the following are true:;
2014 (a)1. The last known address of the apparent owner or
2015 other person entitled to the property is unknown.; or
2016 2. The last known address of the apparent owner or other
2017 person entitled to the property is in a state that does not
2018 provide by law for the escheat or custodial taking of the
2019 property, or its escheat or unclaimed property law is not
2020 applicable to the property; and
2021 (b) The holder is domiciled in a jurisdiction a
2022 domiciliary of a state that does not have applicable provide by
2023 law for the escheat, abandoned, or custodial taking of the
2024 property, or its escheat or unclaimed property laws law is not
2025 applicable to the property.

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2026 Section 33. Section 717.1035, Florida Statutes, is
2027 repealed.
2028 Section 34. Section 717.104, Florida Statutes, is amended
2029 to read:
2030 717.104 Traveler's checks and money orders.—
2031 (1) Subject to subsection (4), any sum payable on a
2032 traveler's check that has been outstanding for more than 15
2033 years after its issuance is presumed abandoned unclaimed unless
2034 the apparent owner or authorized representative, within 15
2035 years, has demonstrated a continued interest in the property in
2036 accordance with s. 717.102 communicated in writing with the
2037 issuer concerning it or otherwise indicated an interest as
2038 evidenced by a memorandum or other record on file with the
2039 issuer.
2040 (2) Subject to subsection (4), any sum payable on a money
2041 order or similar written instrument, other than a third party
2042 bank check, that has been outstanding for more than 7 years
2043 after its issuance is presumed abandoned unclaimed unless the
2044 apparent owner or authorized representative, within 7 years, has
2045 demonstrated a continued interest in the property in accordance
2046 with s. 717.102 communicated in writing with the issuer
2047 concerning it or otherwise indicated an interest as evidenced by
2048 a memorandum or other record on file with the issuer.
2049 (3) A No holder may not deduct from the amount of any
2050 traveler's check or money order any charges imposed by reason of

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2051 the failure to present those instruments for payment unless
2052 there is a valid and enforceable written contract between the
2053 holder issuer and the apparent owner of the property pursuant to
2054 which the holder issuer may impose those charges and the holder
2055 issuer regularly imposes those charges and does not regularly
2056 reverse or otherwise cancel those charges with respect to the
2057 property.
2058 (4) No sum payable on a traveler's check, money order, or
2059 similar written instrument, other than a third party bank check,
2060 described in subsections (1) and (2) may be subjected to the
2061 custody of this state as abandoned unclaimed property unless any
2062 of the following conditions are met:
2063 (a) The records of the holder issuer show that the
2064 traveler's check, money order, or similar written instrument was
2065 purchased in this state.;
2066 (b) The holder issuer has its principal place of business
2067 in this state and its the records of the issuer do not show the
2068 state in which the traveler's check, money order, or similar
2069 written instrument was purchased.; or
2070 (c) The holder issuer has its principal place of business
2071 in this state; the holder's records of the issuer show the state
2072 in which the traveler's check, money order, or similar written
2073 instrument was purchased; and the laws of the state of purchase
2074 does not provide applicable do not provide for the escheat,
2075 abandoned, or unclaimed property laws or custodial taking of the

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2076 property, or its escheat or unclaimed property law is not
2077 applicable to the property.
2078 (5) Notwithstanding any other provision of this chapter,
2079 subsection (4) applies to sums payable on traveler's checks,
2080 money orders, and similar written instruments presumed abandoned
2081 unclaimed on or after February 1, 1965, except to the extent
2082 that those sums have been paid over to a state prior to January
2083 1, 1974.
2084 Section 35. Section 717.1045, Florida Statutes, is amended
2085 to read:
2086 717.1045 Gift certificates and similar credit items.—
2087 Notwithstanding s. 717.117, an unredeemed gift certificate or
2088 credit memo as defined in s. 501.95 is not required to be
2089 reported as abandoned unclaimed property.
2090 (1) The consideration paid for an unredeemed gift
2091 certificate or credit memo is the property of the issuer of the
2092 unredeemed gift certificate or credit memo.
2093 (2) An unredeemed gift certificate or credit memo is
2094 subject only to any rights of a purchaser or owner thereof and
2095 is not subject to a claim made by any state acting on behalf of
2096 a purchaser or owner.
2097 (3) It is the intent of the Legislature that this section
2098 apply to the custodial holding of unredeemed gift certificates
2099 and credit memos.
2100 (4) However, a gift certificate or credit memo described

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2101 in s. 501.95(2)(b) shall be reported as abandoned unclaimed
2102 property. The consideration paid for such a gift certificate or
2103 credit memo is the property of the owner of the gift certificate
2104 or credit memo.
2105 Section 36. Section 717.105, Florida Statutes, is amended
2106 to read:
2107 717.105 Checks, drafts, and similar instruments issued or
2108 certified by banking and financial organizations.—
2109 (1) Any sum payable on a check, draft, or similar
2110 instrument, except those subject to ss. 717.104 and 717.115, on
2111 which a banking or financial organization is directly liable,
2112 including, but not limited to, a cashier's check or a certified
2113 check, which has been outstanding for more than 5 years after it
2114 was payable or after its issuance if payable on demand, is
2115 presumed abandoned unclaimed unless the apparent owner or
2116 authorized representative, within 5 years, has communicated in
2117 writing with the banking or financial organization concerning it
2118 or otherwise demonstrated a continued interest in the property
2119 in accordance with s. 717.102 indicated an interest as evidenced
2120 by a memorandum or other record on file with the banking or
2121 financial organization.
2122 (2) A No holder may not deduct from the amount of any
2123 instrument subject to this section any charges imposed by reason
2124 of the failure to present the instrument for encashment unless
2125 there is a valid and enforceable written contract between the

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2126 holder and the apparent owner of the instrument pursuant to
2127 which the holder may impose those charges and does not regularly
2128 reverse or otherwise cancel those charges with respect to the
2129 instrument.
2130 Section 37. Subsection (1), paragraphs (a) and (b) of
2131 subsection (3), and subsections (4) and (5) of section 717.106,
2132 Florida Statutes, are amended to read:
2133 717.106 Bank deposits and funds in financial
2134 organizations.—
2135 (1) Any demand, savings, or matured time deposit with a
2136 banking or financial organization, including deposits that are
2137 automatically renewable, and any funds paid toward the purchase
2138 of shares, a mutual investment certificate, or any other
2139 interest in a banking or financial organization is presumed
2140 abandoned unclaimed unless the apparent owner or authorized
2141 representative has, within 5 years, engaged in any of the
2142 following activities:
2143 (a) Increased or decreased the amount of the deposit or
2144 presented the passbook or other similar evidence of the deposit
2145 for the crediting of interest.;
2146 (b) Communicated in writing or by documented telephone
2147 contact with the banking or financial organization concerning
2148 the property.;
2149 (c) Otherwise demonstrated a continued indicated an
2150 interest in the property as evidenced by a memorandum or other

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2151 record on file with the banking or financial organization.;
2152 (d) Owned other property to which paragraph (a), paragraph
2153 (b), or paragraph (c) is applicable and if the banking or
2154 financial organization communicates in writing with the owner
2155 with regard to the property that would otherwise be presumed
2156 abandoned unclaimed under this subsection at the address to
2157 which communications regarding the other property regularly are
2158 sent.; or
2159 (e) Had another relationship with the banking or financial
2160 organization concerning which the apparent owner has:
2161 1. Communicated in writing with the banking or financial
2162 organization; or
2163 2. Otherwise demonstrated a continued indicated an
2164 interest as evidenced by a memorandum or other record on file
2165 with the banking or financial organization and if the banking or
2166 financial organization communicates in writing with the apparent
2167 owner or authorized representative with regard to the property
2168 that would otherwise be presumed abandoned unclaimed under this
2169 subsection at the address to which communications regarding the
2170 other relationship regularly are sent.
2171 (3) A No holder may not impose with respect to property
2172 described in subsection (1) any charges due to dormancy or
2173 inactivity or cease payment of interest unless:
2174 (a) There is an enforceable written contract between the
2175 holder and the apparent owner of the property pursuant to which

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2176 the holder may impose those charges or cease payment of
2177 interest.
2178 (b) For property in excess of $2, the holder, no more than
2179 3 months prior to the initial imposition of those charges or
2180 cessation of interest, has given written notice to the apparent
2181 owner of the amount of those charges at the last known address
2182 of the apparent owner stating that those charges shall be
2183 imposed or that interest shall cease, but the notice provided in
2184 this section need not be given with respect to charges imposed
2185 or interest ceased before July 1, 1987.
2186 (4) Any property described in subsection (1) that is
2187 automatically renewable is matured for purposes of subsection
2188 (1) upon the expiration of its initial time period except that,
2189 in the case of any renewal to which the apparent owner consents
2190 at or about the time of renewal by communicating in writing with
2191 the banking or financial organization or otherwise indicating
2192 consent as evidenced by a memorandum or other record on file
2193 prepared by an employee of the organization, the property is
2194 matured upon the expiration of the last time period for which
2195 consent was given. If, at the time provided for delivery in s.
2196 717.119, a penalty or forfeiture in the payment of interest
2197 would result from the delivery of the property, the time for
2198 delivery is extended until the time when no penalty or
2199 forfeiture would result.
2200 (5) If the documents establishing a deposit described in

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2201 subsection (1) state the address of a beneficiary of the
2202 deposit, and the account has a value of at least $50, notice
2203 shall be given to the beneficiary as provided for notice to the
2204 apparent owner under s. 717.117 s. 717.117(6). This subsection
2205 shall apply to accounts opened on or after October 1, 1990.
2206 Section 38. Subsection (1) of section 717.107, Florida
2207 Statutes, is amended to read:
2208 717.107 Funds owing under life insurance policies, annuity
2209 contracts, and retained asset accounts; fines, penalties, and
2210 interest; United States Social Security Administration Death
2211 Master File.—
2212 (1) Funds held or owing under any life or endowment
2213 insurance policy or annuity contract which has matured or
2214 terminated are presumed abandoned unclaimed if unclaimed for
2215 more than 5 years after the date of death of the insured, the
2216 annuitant, or the retained asset account holder, but property
2217 described in paragraph (3)(d) is presumed abandoned unclaimed if
2218 such property is not claimed for more than 2 years. The amount
2219 presumed abandoned unclaimed shall include any amount due and
2220 payable under s. 627.4615.
2221 Section 39. Section 717.1071, Florida Statutes, is amended
2222 to read:
2223 717.1071 Lost owners of abandoned unclaimed
2224 demutualization, rehabilitation, or related reorganization
2225 proceeds.—

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2226 (1) Property distributable in the course of a
2227 demutualization, rehabilitation, or related reorganization of an
2228 insurance company is deemed abandoned 2 years after the date the
2229 property is first distributable if, at the time of the first
2230 distribution, the last known address of the apparent owner on
2231 the books and records of the holder is known to be incorrect or
2232 the distribution or statements are returned by the post office
2233 as undeliverable; and the apparent owner or authorized
2234 representative owner has not communicated in writing with the
2235 holder or its agent regarding the interest or otherwise
2236 communicated with the holder regarding the interest as evidenced
2237 by a memorandum or other record on file with the holder or its
2238 agent.
2239 (2) Property distributable in the course of
2240 demutualization, rehabilitation, or related reorganization of a
2241 mutual insurance company that is not subject to subsection (1)
2242 shall be reportable as otherwise provided by this chapter.
2243 (3) Property subject to this section shall be reported and
2244 delivered no later than May 1 as of the preceding December 31;
2245 however, the initial report under this section shall be filed no
2246 later than November 1, 2003, as of December 31, 2002.
2247 Section 40. Section 717.108, Florida Statutes, is amended
2248 to read:
2249 717.108 Deposits held by utilities.—Any deposit, including
2250 any interest thereon, made by a subscriber with a utility to

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2251 secure payment or any sum paid in advance for utility services
2252 to be furnished, less any lawful charges, that remains unclaimed
2253 by the apparent owner for more than 1 year after termination of
2254 the services for which the deposit or advance payment was made
2255 is presumed abandoned unclaimed.
2256 Section 41. Section 717.109, Florida Statutes, is amended
2257 to read:
2258 717.109 Refunds held by business associations.—Except as
2259 otherwise provided by law, any sum that a business association
2260 has been ordered to refund by a court or administrative agency
2261 which has been unclaimed by the apparent owner for more than 1
2262 year after it became payable in accordance with the final
2263 determination or order providing for the refund, regardless of
2264 whether the final determination or order requires any person
2265 entitled to a refund to make a claim for it, is presumed
2266 abandoned unclaimed.
2267 Section 42. Section 717.1101, Florida Statutes, is amended
2268 to read:
2269 717.1101 Abandoned Unclaimed equity and debt of business
2270 associations.—
2271 (1)(a) Stock, or other equity interests, or debt of
2272 interest in a business association is presumed abandoned
2273 unclaimed on the date of the earliest of any of the following:
2274 1. Three years after the date a communication, other than
2275 communications required by s. 717.117, sent by the holder by

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2276 first-class United States mail to the apparent owner is returned
2277 to the holder undelivered by the United States Postal Service.
2278 If such returned communication is resent within 1 month to the
2279 apparent owner, the 3-year dormancy period does not begin until
2280 the day the resent item is returned as undelivered.
2281 2. Five Three years after the most recent of any account
2282 owner-generated activity or communication initiated by the
2283 apparent owner or authorized representative which demonstrates
2284 continued interest in the related to the account, as recorded
2285 and maintained by in the holder. Routine automatic reinvestments
2286 or other routine transactions previously authorized by the
2287 apparent owner or authorized representative do not prevent,
2288 interrupt, or reset the dormancy period and do not constitute an
2289 affirmative demonstration of continued interest. holder's
2290 database and records systems sufficient enough to demonstrate
2291 the owner's continued awareness or interest in the property;
2292 3.2. Two Three years after the date of the death of the
2293 apparent owner, as evidenced by:
2294 a. Notice to the holder of the apparent owner's death by
2295 an authorized representative administrator, beneficiary,
2296 relative, or trustee, or by a personal representative or other
2297 legal representative of the owner's estate;
2298 b. Receipt by the holder of a copy of the death
2299 certificate of the apparent owner;
2300 c. Confirmation by the holder of the apparent owner's

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2301 death through though other means; or
2302 d. Other evidence from which the holder may reasonably
2303 conclude that the apparent owner is deceased.; or
2304 3. One year after the date on which the holder receives
2305 notice under subparagraph 2. if the notice is received 2 years
2306 or less after the owner's death and the holder lacked knowledge
2307 of the owner's death during that period of 2 years or less.
2308 (b) If the holder does not send communication to the
2309 apparent owner of a security by first-class United States mail
2310 on an annual basis, the holder shall attempt to confirm the
2311 apparent owner's interest in the equity interest by sending the
2312 apparent owner an e-mail communication not later than 3 years
2313 after the apparent owner's or authorized representative's last
2314 demonstration of continued interest in the equity interest.
2315 However, the holder shall promptly attempt to contact the
2316 apparent owner by first-class United States mail if:
2317 1. The holder does not have information needed to send the
2318 apparent owner an e-mail communication or the holder believes
2319 that the apparent owner's e-mail address in the holder's records
2320 is not valid;
2321 2. The holder received notification that the e-mail
2322 communication was not received; or
2323 3. The apparent owner does not respond to the e-mail
2324 communication within 30 days after the communication was sent.
2325 (c) If first-class United States mail sent under paragraph

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2326 (b) is returned to the holder undelivered by the United States
2327 Postal Service, the equity interest is presumed abandoned in
2328 accordance with paragraph (1)(a).
2329 (d) Unmatured or unredeemed debt, other than a bearer bond
2330 or an original issue discount bond, is presumed abandoned 5
2331 unclaimed 3 years after the date of the most recent interest
2332 payment unclaimed by the owner.
2333 (e)(c) Matured or redeemed debt is presumed abandoned 5
2334 unclaimed 3 years after the date of maturity or redemption.
2335 (f)(d) At the time property is presumed abandoned
2336 unclaimed under paragraph (a) or paragraph (b), any other
2337 property right accrued or accruing to the owner as a result of
2338 the property interest and not previously presumed abandoned
2339 unclaimed is also presumed abandoned unclaimed.
2340 (2) The running of the applicable dormancy period under
2341 this section such 3-year period ceases if the apparent owner or
2342 authorized representative demonstrates continued interest under
2343 s. 717.102, including by any of the following actions person:
2344 (a)1. Communicating Communicates in writing or by other
2345 means with the association or its agent regarding the interest,
2346 or a dividend, distribution, or other sum payable as a result of
2347 the interest, as recorded by the association or its agent; or
2348 2. Otherwise communicates with the association regarding
2349 the interest or a dividend, distribution, or other sum payable
2350 as a result of the interest, as evidenced by a memorandum or

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2351 other record on file with the association or its agent.
2352 (b) Presenting Presents an instrument issued to pay
2353 interest, or a dividend, or other cash distribution. If any
2354 future dividend, distribution, or other sum payable to the owner
2355 as a result of the interest is subsequently unclaimed not
2356 claimed by the owner, a new period in which the property is
2357 presumed abandoned unclaimed commences and relates back only to
2358 the time a subsequent dividend, distribution, or other sum
2359 became due and payable.
2360 (3) At the same time any interest is presumed abandoned
2361 unclaimed under this section, any dividend, distribution, or
2362 other sum then held for or owing to the owner as a result of the
2363 interest, is presumed abandoned unclaimed.
2364 (4) Any dividend, profit, distribution, interest
2365 redemption, payment on principal, or other sum held or owing by
2366 a business association for or to a shareholder,
2367 certificateholder, member, bondholder, or other security holder,
2368 who has not claimed such amount or corresponded in writing with
2369 the business association concerning such amount, within 5 3
2370 years after the date prescribed for payment or delivery, is
2371 presumed abandoned unclaimed.
2372 Section 43. Section 717.111, Florida Statutes, is amended
2373 to read:
2374 717.111 Property of business associations held in course
2375 of dissolution.—All intangible property distributable in the

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2376 course of a voluntary or involuntary dissolution of a business
2377 association which is not claimed by the apparent owner for more
2378 than 6 months after the date specified for final distribution is
2379 presumed abandoned unclaimed.
2380 Section 44. Subsections (1) and (5) of section 717.112,
2381 Florida Statutes, are amended to read:
2382 717.112 Property held by agents and fiduciaries.—
2383 (1) All intangible property and any income or increment
2384 thereon held in a fiduciary capacity for the benefit of another
2385 person, including property held by an attorney in fact or an
2386 agent, except as provided in ss. 717.1125 and 733.816, is
2387 presumed abandoned unclaimed unless the apparent owner has
2388 within 5 years after it has become payable or distributable
2389 increased or decreased the principal, accepted payment of
2390 principal or income, communicated in writing concerning the
2391 property, or otherwise indicated an interest as evidenced by a
2392 memorandum or other record on file with the fiduciary.
2393 (5) All intangible property, and any income or increment
2394 thereon, issued by a government or governmental subdivision or
2395 agency, public corporation, or public authority and held in an
2396 agency capacity for the governmental subdivision, agency, public
2397 corporation, or public authority for the benefit of the owner of
2398 record, is presumed abandoned unclaimed unless the apparent
2399 owner has, within 1 year after such property has become payable
2400 or distributable, increased or decreased the principal, accepted

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2401 payment of the principal or income, communicated concerning the
2402 property, or otherwise indicated an interest in the property as
2403 evidenced by a memorandum or other record on file with the
2404 fiduciary.
2405 Section 45. Section 717.1125, Florida Statutes, is amended
2406 to read:
2407 717.1125 Property held by fiduciaries under trust
2408 instruments.—All intangible property and any income or increment
2409 thereon held in a fiduciary capacity for the benefit of another
2410 person under a trust instrument is presumed abandoned unclaimed
2411 unless the apparent owner has, within 2 years after it has
2412 become payable or distributable, increased or decreased the
2413 principal, accepted payment of principal or income, communicated
2414 concerning the property, or otherwise indicated an interest as
2415 evidenced by a memorandum or other record on file with the
2416 fiduciary. This section does not relieve a fiduciary of his or
2417 her duties under the Florida Trust Code.
2418 Section 46. Section 717.113, Florida Statutes, is amended
2419 to read:
2420 717.113 Property held by courts and public agencies.—All
2421 intangible property held for the apparent owner by any court,
2422 government or governmental subdivision or agency, public
2423 corporation, or public authority that has not been claimed by
2424 the apparent owner for more than 1 year after it became payable
2425 or distributable is presumed abandoned unclaimed. Except as

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2426 provided in s. 45.032(3)(c), money held in the court registry
2427 and for which no court order has been issued to determine an
2428 owner does not become payable or distributable and is not
2429 subject to reporting under this chapter. Notwithstanding the
2430 provisions of this section, funds deposited in the Minerals
2431 Trust Fund pursuant to s. 377.247 are presumed abandoned
2432 unclaimed only if the funds have not been claimed by the
2433 apparent owner for more than 5 years after the date of first
2434 production from the well.
2435 Section 47. Section 717.115, Florida Statutes, is amended
2436 to read:
2437 717.115 Wages.—Unpaid wages, including wages represented
2438 by unpresented payroll checks, owing in the ordinary course of
2439 the holder's business that have not been claimed by the apparent
2440 owner for more than 1 year after becoming payable are presumed
2441 abandoned unclaimed.
2442 Section 48. Section 717.116, Florida Statutes, is amended
2443 to read:
2444 717.116 Contents of safe-deposit box or other safekeeping
2445 repository.—All tangible and intangible property held by a
2446 banking or financial organization in a safe-deposit box or any
2447 other safekeeping repository in this state in the ordinary
2448 course of the holder's business, and proceeds resulting from the
2449 sale of the property permitted by law, that has not been claimed
2450 by the apparent owner or authorized representative for more than

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2451 3 years after the lease or rental period on the box or other
2452 repository has expired are presumed abandoned unclaimed.
2453 Section 49. Section 717.117, Florida Statutes, is amended
2454 to read:
2455 717.117 Holder due diligence and report of abandoned
2456 unclaimed property.—
2457 (1) Property is presumed abandoned upon expiration of the
2458 applicable dormancy period under this chapter. However, such
2459 property is not deemed abandoned for purposes of reporting or
2460 remittance to the department until the holder has conducted
2461 reasonable due diligence as required by this section, resulting
2462 in no indication of interest from the apparent owner or
2463 authorized representative.
2464 (2) Holders of property presumed abandoned that has a
2465 value of $50 or more shall use due diligence to locate and
2466 notify the apparent owner that the holder is in possession of
2467 property subject to this chapter. At least 90 days, but not more
2468 than 180 days, before filing the report required by this
2469 section, a holder in possession of presumed abandoned property
2470 shall send written notice by first-class United States mail to
2471 the apparent owner's last known address as shown in the holder's
2472 records or from other available sources, or by e-mail if the
2473 apparent owner has elected for e-mail delivery, informing the
2474 apparent owner that the holder is in possession of property
2475 subject to this chapter, provided that the holder's records

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2476 contain a mailing or e-mail address for the apparent owner which
2477 is not known by the holder to be inaccurate. The holder may
2478 provide notice by mail, by e-mail, or by both methods. If the
2479 holder's records indicate that the mailing address is
2480 inaccurate, notice may be provided by e-mail if the apparent
2481 owner has elected e-mail delivery.
2482 (3) If the value of the property is greater than $1,000,
2483 the holder shall send a second written notice by certified
2484 United States mail, return receipt requested, to the apparent
2485 owner's last known address at least 60 days before filing the
2486 report required by this section, if the holder's records contain
2487 a mailing address for the apparent owner which is not known by
2488 the holder to be inaccurate. Reasonable costs paid to the United
2489 States Postal Service for certified mail, return receipt
2490 requested, may be deducted from the property as a service
2491 charge. A signed return receipt received in response to the
2492 certified mail notice constitutes an affirmative demonstration
2493 of continued interest as described in s. 717.102.
2494 (4) The written notice required under this section must
2495 include:
2496 (a) A heading that reads substantially as follows:
2497 "Notice: The State of Florida requires us to notify you that
2498 your property may be transferred to the custody of the Florida
2499 Department of Financial Services if you do not contact us before
2500 ...(insert date that is at least 30 days after the date of

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2501 notice)...."
2502 (b) A description of the type, nature, and, unless the
2503 property does not have a fixed value, value of the property that
2504 is the subject of the notice.
2505 (c) A statement that the property will be turned over to
2506 the custody of the department as abandoned property if no
2507 response is received.
2508 (d) A statement that noncash property will be sold or
2509 liquidated by the department.
2510 (e) A statement that, after the property is remitted to
2511 the department, a claim must be filed with the department to
2512 recover the property.
2513 (f) A statement that the property is currently in the
2514 custody of the holder and that the apparent owner may prevent
2515 transfer of the property by contacting the holder before the
2516 deadline stated in the notice.
2517 (5) Every holder of abandoned person holding funds or
2518 other property, tangible or intangible, presumed unclaimed and
2519 subject to custody as unclaimed property under this chapter
2520 shall submit a report to the department via electronic medium as
2521 the department may prescribe by rule. The report must include:
2522 (a) Except for traveler's checks and money orders, the
2523 name, social security number or taxpayer identification number,
2524 date of birth, if known, and last known address, if any, of each
2525 apparent person appearing from the records of the holder to be

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2526 the owner of any property which is abandoned presumed unclaimed
2527 and which has a value of $10 or more.
2528 (b) For abandoned unclaimed funds that have a value of $10
2529 or more held or owing under any life or endowment insurance
2530 policy or annuity contract, the identifying information provided
2531 in paragraph (a) for both the insured or annuitant and the
2532 beneficiary according to records of the insurance company
2533 holding or owing the funds.
2534 (c) For all tangible property held in a safe-deposit box
2535 or other safekeeping repository, a description of the property
2536 and the place where the property is held and may be inspected by
2537 the department, and any amounts owing to the holder. Contents of
2538 a safe-deposit box or other safekeeping repository which consist
2539 of documents or writings of a private nature and which have
2540 little or no commercial value may apparent value shall not be
2541 reported as abandoned property presumed unclaimed.
2542 (d) The nature or type of property, any accounting or
2543 identifying number associated with the property, a description
2544 of the property, and the amount appearing from the records to be
2545 due. Items of value of less than $10 each may be reported in the
2546 aggregate.
2547 (e) The date the property became payable, demandable, or
2548 returnable, and the date of the last transaction with the
2549 apparent owner with respect to the property.
2550 (f) Any other information the department may prescribe by

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2551 rule as necessary for the administration of this chapter.
2552 (6)(2) If the total value of all abandoned presumed
2553 unclaimed property, whether tangible or intangible, held by a
2554 person is less than $10, a zero balance report may be filed for
2555 that reporting period.
2556 (7)(3) Credit balances, customer overpayments, security
2557 deposits, and refunds having a value of less than $10 may not be
2558 reported as abandoned property shall not be presumed unclaimed.
2559 (8) A security identified by the holder as non-freely
2560 transferable or worthless may not to be included in a report
2561 filed under this section. If the holder determines that a
2562 security is no longer non-freely transferable or worthless, the
2563 holder shall report and deliver the security on the next regular
2564 report date prescribed for delivery of securities by the holder
2565 under this chapter.
2566 (9)(4) If the holder of abandoned property presumed
2567 unclaimed and subject to custody under this chapter as unclaimed
2568 property is a successor holder or if the holder has changed the
2569 holder's name while in possession of the property, the holder
2570 shall file with the holder's report all known names and
2571 addresses of each prior holder of the property. Compliance with
2572 this subsection means the holder exercises reasonable and
2573 prudent efforts to determine the names of all prior holders.
2574 (10) The report must be signed by or on behalf of the
2575 holder and verified as to its completeness and accuracy, and the

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2576 holder must state that it has complied with the due diligence
2577 requirements of this section.
2578 (11)(5) The report must be filed before May 1 of each
2579 year. The report applies to the preceding calendar year. Upon
2580 written request by any person required to file a report, and
2581 upon a showing of good cause, the department may extend the
2582 reporting date. The department may impose and collect a penalty
2583 of $10 per day up to a maximum of $500 for the failure to timely
2584 report, if an extension was not provided or if the holder of the
2585 property failed to include in a report information required by
2586 this chapter which was in the holder's possession at the time of
2587 reporting. The penalty shall be remitted to the department
2588 within 30 days after the date of the notification to the holder
2589 that the penalty is due and owing. As necessary for proper
2590 administration of this chapter, the department may waive any
2591 penalty due with appropriate justification. The department must
2592 provide information contained in a report filed with the
2593 department to any person requesting a copy of the report or
2594 information contained in a report, to the extent the information
2595 requested is not confidential, within 45 days after the
2596 department determines that the report is accurate and acceptable
2597 and that the reported property is the same as the remitted
2598 property.
2599 (6) Holders of inactive accounts having a value of $50 or
2600 more shall use due diligence to locate and notify apparent

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2601 owners that the entity is holding unclaimed property available
2602 for them to recover. Not more than 120 days and not less than 60
2603 days prior to filing the report required by this section, the
2604 holder in possession of property presumed unclaimed and subject
2605 to custody as unclaimed property under this chapter shall send
2606 written notice by first-class United States mail to the apparent
2607 owner at the apparent owner's last known address from the
2608 holder's records or from other available sources, or via
2609 electronic mail if the apparent owner has elected this method of
2610 delivery, informing the apparent owner that the holder is in
2611 possession of property subject to this chapter, if the holder
2612 has in its records a mailing or electronic address for the
2613 apparent owner which the holder's records do not disclose to be
2614 inaccurate. These two means of contact are not mutually
2615 exclusive; if the mailing address is determined to be
2616 inaccurate, electronic mail may be used if so elected by the
2617 apparent owner.
2618 (7) The written notice to the apparent owner required
2619 under this section must:
2620 (a) Contain a heading that reads substantially as follows:
2621 "Notice. The State of Florida requires us to notify you that
2622 your property may be transferred to the custody of the Florida
2623 Department of Financial Services if you do not contact us before
2624 ...(insert date that is at least 30 days after the date of
2625 notice)...."

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2626 (b) Identify the type, nature, and, except for property
2627 that does not have a fixed value, value of the property that is
2628 the subject of the notice.
2629 (c) State that the property will be turned over to the
2630 custody of the department as unclaimed property if no response
2631 to this letter is received.
2632 (d) State that any property that is not legal tender of
2633 the United States may be sold or liquidated by the department.
2634 (e) State that after the property is turned over to the
2635 department, an apparent owner seeking return of the property may
2636 file a claim with the department.
2637 (f) State that the property is currently with a holder and
2638 provide instructions that the apparent owner must follow to
2639 prevent the holder from reporting and paying for the property or
2640 from delivering the property to the department.
2641 (12)(8) Any holder of intangible property may file with
2642 the department a petition for determination that the property is
2643 abandoned and unclaimed requesting the department to accept
2644 custody of the property. The petition shall state any special
2645 circumstances that exist, contain the information required by
2646 subsection (9) subsection (4), and show that a diligent search
2647 has been made to locate the apparent owner. If the department
2648 finds that the proof of diligent search is satisfactory, it
2649 shall give notice as provided in s. 717.118 and accept custody
2650 of the property.

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2651 (13)(9) Upon written request by any entity or person
2652 required to file a report, stating such entity's or person's
2653 justification for such action, the department may place that
2654 entity or person in an inactive status as an abandoned unclaimed
2655 property "holder."
2656 (14)(10)(a) This section does not apply to the abandoned
2657 unclaimed patronage refunds as provided for by contract or
2658 through bylaw provisions of entities organized under chapter 425
2659 or that are exempt from ad valorem taxation pursuant to s.
2660 196.2002.
2661 (b) This section does not apply to intangible property
2662 held, issued, or owing by a business association subject to the
2663 jurisdiction of the United States Surface Transportation Board
2664 or its successor federal agency if the apparent owner of such
2665 intangible property is a business association. The holder of
2666 such property does not have any obligation to report, to pay, or
2667 to deliver such property to the department.
2668 (c) This section does not apply to credit balances,
2669 overpayments, refunds, or outstanding checks owed by a health
2670 care provider to a managed care payor with whom the health care
2671 provider has a managed care contract, provided that the credit
2672 balances, overpayments, refunds, or outstanding checks become
2673 due and owing pursuant to the managed care contract.
2674 (15)(11)(a) As used in this subsection, the term "property
2675 identifier" means the descriptor used by the holder to identify

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2676 the abandoned unclaimed property.
2677 (b) Social security numbers and property identifiers
2678 contained in reports required under this section, held by the
2679 department, are confidential and exempt from s. 119.07(1) and s.
2680 24(a), Art. I of the State Constitution.
2681 (c) This exemption applies to social security numbers and
2682 property identifiers held by the department before, on, or after
2683 the effective date of this exemption.
2684 Section 50. Section 717.118, Florida Statutes, is amended
2685 to read:
2686 717.118 Notification of apparent owners of abandoned
2687 unclaimed property.—
2688 (1) It is specifically recognized that the state has an
2689 obligation to make an effort to notify apparent owners in a
2690 cost-effective manner that their abandoned property has been
2691 reported and remitted to the department of unclaimed property in
2692 a cost-effective manner. In order to provide all the citizens of
2693 this state an effective and efficient program for the recovery
2694 of abandoned personal unclaimed property, the department shall
2695 use cost-effective means to make at least one active attempt to
2696 notify apparent owners of abandoned unclaimed property accounts
2697 valued at $50 or more, abandoned tangible property, and
2698 abandoned shares of stock for which more than $250 with a
2699 reported address or taxpayer identification number is available.
2700 Such active attempt to notify apparent owners shall include any

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2701 attempt by the department to directly contact the apparent
2702 owner. Other means of notification, such as publication of the
2703 names of apparent owners in the newspaper, on television, on the
2704 Internet, or through other promotional efforts and items in
2705 which the department does not directly attempt to contact the
2706 apparent owner are expressly declared to be passive attempts.
2707 Nothing in This subsection does not preclude precludes other
2708 agencies or entities of state government from notifying owners
2709 of the existence of abandoned unclaimed property or attempting
2710 to notify apparent owners of abandoned unclaimed property.
2711 (2) Notification provided directly to individual apparent
2712 owners shall contain consist of a description of the abandoned
2713 property and information regarding recovery of the unclaimed
2714 property from the department. The form and content of the
2715 department's notice shall be tailored to the type of property
2716 reported and shall include any information necessary to
2717 reasonably inform the apparent owner of the consequences of
2718 failure to claim the property, including potential sale or
2719 disposition under s. 717.122.
2720 (3) The department shall maintain a publicly accessible,
2721 electronically searchable website that includes the names of
2722 apparent owners of abandoned property reported to the department
2723 and instructions for filing a claim. The website must list
2724 property valued at $10 or more and provide instructions for
2725 filing a claim. Abandoned property valued at less than $10

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2726 remains recoverable from the department in accordance with this
2727 chapter.
2728 (4) This section is not applicable to abandoned sums
2729 payable on traveler's checks, money orders, and other written
2730 instruments presumed unclaimed under s. 717.104, or any other
2731 abandoned property reported without the necessary identifying
2732 information to establish ownership.
2733 Section 51. Section 717.119, Florida Statutes, is amended
2734 to read:
2735 717.119 Payment or delivery of abandoned unclaimed
2736 property.—
2737 (1) Every person who is required to file a report under s.
2738 717.117 shall simultaneously pay or deliver to the department
2739 all abandoned unclaimed property required to be reported. Such
2740 payment or delivery shall accompany the report as required in
2741 this chapter for the preceding calendar year.
2742 (2) Payment of abandoned unclaimed funds may be made to
2743 the department by electronic funds transfer.
2744 (3) If the apparent owner establishes the right to receive
2745 the abandoned unclaimed property to the satisfaction of the
2746 holder before the property has been delivered to the department
2747 or it appears that for some other reason the presumption that
2748 the property was erroneously classified as abandoned is
2749 unclaimed is erroneous, the holder need not pay or deliver the
2750 property to the department. In lieu of delivery, the holder

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2751 shall file a verified written explanation of the proof of claim
2752 or of the error in classification of the presumption that the
2753 property as abandoned was unclaimed.
2754 (4) All virtual currency reported under this chapter on
2755 the annual report filing required in s. 717.117 shall be
2756 remitted to the department with the report. The holder shall
2757 liquidate the virtual currency and remit the proceeds to the
2758 department. The liquidation must occur within 30 days before the
2759 filing of the report. Upon delivery of the virtual currency
2760 proceeds to the department, the holder is relieved of all
2761 liability of every kind in accordance with the provisions of s.
2762 717.1201 to every person for any losses or damages resulting to
2763 the person by the delivery to the department of the virtual
2764 currency proceeds.
2765 (5) All stock or other intangible ownership interest
2766 reported under this chapter on the annual report filing required
2767 in s. 717.117 shall be remitted to the department with the
2768 report. Upon delivery of the stock or other intangible ownership
2769 interest to the department, the holder and any transfer agent,
2770 registrar, or other person acting for or on behalf of a holder
2771 is relieved of all liability of every kind in accordance with
2772 the provisions of s. 717.1201 to every person for any losses or
2773 damages resulting to the person by the delivery to the
2774 department of the stock or other intangible ownership interest.
2775 (6) All intangible and tangible property held in a safe-

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2776 deposit box or any other safekeeping repository reported under
2777 s. 717.117 shall not be delivered to the department until 120
2778 days after the report due date. The delivery of the property,
2779 through the United States mail or any other carrier, shall be
2780 insured by the holder at an amount equal to the estimated value
2781 of the property. Each package shall be clearly marked on the
2782 outside "Deliver Unopened." A holder's safe-deposit box contents
2783 shall be delivered to the department in a single shipment. In
2784 lieu of a single shipment, holders may provide the department
2785 with a single detailed shipping schedule that includes package
2786 tracking information for all packages being sent pursuant to
2787 this section.
2788 (a) Holders may remit the value of cash and coins found in
2789 abandoned unclaimed safe-deposit boxes to the department by
2790 cashier's check or by electronic funds transfer, unless the cash
2791 or coins have a value above face value. The department shall
2792 identify by rule those cash and coin items having a numismatic
2793 value. Cash and coin items identified as having a numismatic
2794 value shall be remitted to the department in their original
2795 form.
2796 (b) Any firearm or ammunition found in an abandoned
2797 unclaimed safe-deposit box or any other safekeeping repository
2798 shall be delivered by the holder to a law enforcement agency for
2799 property handling or disposal pursuant to s. 705.103(2)(b). If
2800 the firearm is sold by the law enforcement agency, with the

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2801 balance of the proceeds shall be deposited into the State School
2802 Fund if the firearm is sold. However, The department is
2803 authorized to make a reasonable attempt to ascertain the
2804 historical value to collectors of any firearm that has been
2805 delivered to the department. Any firearm appearing to have
2806 historical value to collectors may be sold by the department
2807 pursuant to s. 717.122 to a person having a federal firearms
2808 license. Any firearm which is not sold pursuant to s. 717.122
2809 shall be delivered by the department to a law enforcement agency
2810 in this state for proper handling or disposal. In accordance
2811 with pursuant to s. 705.103(2)(b), if the firearm is sold by the
2812 law enforcement agency, with the balance of the proceeds shall
2813 be deposited into the State School Fund if the firearm is sold.
2814 The department shall not be administratively, civilly, or
2815 criminally liable for any firearm delivered by the department to
2816 a law enforcement agency in this state for disposal.
2817 (c) If such property is not paid or delivered to the
2818 department on or before the applicable payment or delivery date,
2819 the holder shall pay to the department a penalty for each safe-
2820 deposit box shipment received late. The penalty shall be $100
2821 for a safe-deposit box shipment container that is late 30 days
2822 or less. Thereafter, the penalty shall be $500 for a safe-
2823 deposit box shipment container that is late for each additional
2824 successive 30-day period. The penalty assessed against a holder
2825 for a late safe-deposit box shipment container shall not exceed

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2826 $4,000 annually. The penalty shall be remitted to the department
2827 within 30 days after the date of the notification to the holder
2828 that the penalty is due and owing.
2829 (d) The department may waive any penalty due with
2830 appropriate justification, as provided by rule.
2831 (e) If a will or trust instrument is included among the
2832 contents of an abandoned a safe-deposit box or other safekeeping
2833 repository delivered to the department, the department must
2834 provide a copy of the will, trust, and any codicils or
2835 amendments to such will or trust instrument, upon request, to
2836 anyone who provides the department with a certified copy of the
2837 death certificate evidence of the death of the testator or
2838 settlor.
2839 (7) Any holder may request an extension in writing of up
2840 to 60 days for the delivery of property if extenuating
2841 circumstances exist for the late delivery of the property. Any
2842 such extension the department may grant shall be in writing.
2843 (8) A holder may not assign or otherwise transfer its
2844 obligation to report, pay, or deliver property or to comply with
2845 the provisions of this chapter, other than to a parent,
2846 subsidiary, or affiliate of the holder.
2847 (a) Unless otherwise agreed to by the parties to a
2848 transaction, the holder's successor by merger or consolidation,
2849 or any person or entity that acquires all or substantially all
2850 of the holder's capital stock or assets, is responsible for

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2851 fulfilling the holder's obligation to report, pay, or deliver
2852 property or to comply with the duties of this chapter regarding
2853 the transfer of property owed to the holder's successor and
2854 being held for an owner resulting from the merger,
2855 consolidation, or acquisition.
2856 (b) This subsection does not prohibit a holder from
2857 contracting with a third party for the reporting of abandoned
2858 unclaimed property, but the holder remains responsible to the
2859 department for the complete, accurate, and timely reporting of
2860 the property.
2861 Section 52. Subsections (1), (2), and (4) of section
2862 717.1201, Florida Statutes, are amended to read:
2863 717.1201 Custody by state; holder liability; reimbursement
2864 of holder paying claim; reclaiming for owner; payment of safe-
2865 deposit box or repository charges.—
2866 (1) Upon the good faith payment or delivery of abandoned
2867 unclaimed property to the department, the state assumes custody
2868 and responsibility for the safekeeping of the property. Any
2869 person who pays or delivers abandoned unclaimed property to the
2870 department in good faith is relieved of all liability to the
2871 extent of the value of the property paid or delivered for any
2872 claim then existing or which thereafter may arise or be made
2873 with in respect to the property.
2874 (a) A holder's substantial compliance with the due
2875 diligence provisions in s. 717.117 s. 717.117(6) and good faith

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2876 payment or delivery of abandoned unclaimed property to the
2877 department releases the holder from liability that may arise
2878 from such payment or delivery, and such delivery and payment may
2879 be pleaded as a defense in any suit or action brought by reason
2880 of such delivery or payment. This section does not relieve a
2881 fiduciary of his or her duties under the Florida Trust Code or
2882 Florida Probate Code.
2883 (b) If the holder pays or delivers property to the
2884 department in good faith and thereafter any other person claims
2885 the property from the holder paying or delivering, or another
2886 state claims the money or property under that state's laws
2887 relating to escheat or abandoned or unclaimed property, the
2888 department, upon written notice of the claim, shall defend the
2889 holder against the claim and indemnify the holder against any
2890 liability on the claim, except that a holder may not be
2891 indemnified against penalties imposed by another state.
2892 (2) For the purposes of this section, a payment or
2893 delivery of abandoned unclaimed property is made in good faith
2894 if:
2895 (a) The payment or delivery was made in conjunction with
2896 an accurate and acceptable report.
2897 (b) The payment or delivery was made in a reasonable
2898 attempt to comply with this chapter and other applicable general
2899 law.
2900 (c) The holder had a reasonable basis for believing, based

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2901 on the facts then known, that the property was abandoned
2902 unclaimed and subject to this chapter.
2903 (d) There is no showing that the records pursuant to which
2904 the delivery was made did not meet reasonable commercial
2905 standards of practice in the industry.
2906 (4) Any holder who has delivered property, including a
2907 certificate of any interest in a business association, other
2908 than money to the department pursuant to this chapter may
2909 reclaim the property if still in the possession of the
2910 department, without payment of any fee or other charges, upon
2911 filing proof that the person entitled to the property owner has
2912 claimed it the property from the holder.
2913 Section 53. Section 717.122, Florida Statutes, is amended
2914 to read:
2915 717.122 Public sale of abandoned unclaimed property.—
2916 (1) Except as provided in paragraph (2)(a), the department
2917 after the receipt of abandoned unclaimed property shall sell it
2918 to the highest bidder at public sale on the Internet or at a
2919 specified physical location wherever in the judgment of the
2920 department the most favorable market for the property involved
2921 exists. The department may decline the highest bid and reoffer
2922 the property for sale if in the judgment of the department the
2923 bid is insufficient. The department shall have the discretion to
2924 withhold from sale any abandoned unclaimed property that the
2925 department deems to be of benefit to the people of the state. If

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2926 in the judgment of the department the probable cost of sale
2927 exceeds the value of the property, it need not be offered for
2928 sale and may be disposed of as the department determines
2929 appropriate. Any sale at a specified physical location held
2930 under this section must be preceded by a single publication of
2931 notice, at least 3 weeks in advance of sale, in a newspaper of
2932 general circulation in the county in which the property is to be
2933 sold. The department shall proportionately deduct auction fees,
2934 preparation costs, and expenses from the amount posted to an the
2935 owner's account for an abandoned when safe-deposit box when the
2936 contents are sold. No action or proceeding may be maintained
2937 against the department for or on account of any decision to
2938 decline the highest bid or withhold any abandoned unclaimed
2939 property from sale.
2940 (2)(a) Securities listed on an established stock exchange
2941 must be sold at prices prevailing at the time of sale on the
2942 exchange. Other securities may be sold over the counter at
2943 prices prevailing at the time of sale or by any other method the
2944 department deems advisable. The department may authorize the
2945 agent or broker acting on behalf of the department to deduct
2946 fees from the proceeds of these sales at a rate agreed upon in
2947 advance by the agent or broker and the department. The
2948 department shall reimburse owners' accounts for these brokerage
2949 fees from the State School Fund unless the securities are sold
2950 at the owner's request.

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2951 (b) Unless the department deems it to be in the public
2952 interest to do otherwise, all abandoned securities presumed
2953 unclaimed and delivered to the department may be sold upon
2954 receipt. Any person making a claim pursuant to this chapter is
2955 entitled to receive either the securities delivered to the
2956 department by the holder, if they still remain in the hands of
2957 the department, or the proceeds received from sale, but no
2958 person has any claim under this chapter against the state, the
2959 holder, any transfer agent, any registrar, or any other person
2960 acting for or on behalf of a holder for any appreciation in the
2961 value of the property occurring after delivery by the holder to
2962 the state.
2963 (c) Certificates for abandoned unclaimed stock or other
2964 equity interest of business associations that cannot be canceled
2965 and registered in the department's name or that cannot be
2966 readily liquidated and converted into the currency of the United
2967 States may be sold for the value of the certificate, if any, in
2968 accordance with subsection (1) or may be destroyed in accordance
2969 with s. 717.128.
2970 (3) The purchaser of property at any sale conducted by the
2971 department pursuant to this chapter is entitled to ownership of
2972 the property purchased free from all claims of the owner or
2973 previous holder thereof and of all persons claiming through or
2974 under them. The department shall execute all documents necessary
2975 to complete the transfer of ownership.

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2976 (4) The sale of abandoned unclaimed tangible personal
2977 property is not subject to tax under chapter 212 when such
2978 property is sold by or on behalf of the department pursuant to
2979 this section.
2980 Section 54. Section 717.123, Florida Statutes, is amended
2981 to read:
2982 717.123 Deposit of funds.—
2983 (1) All funds received under this chapter, including the
2984 proceeds from the sale of abandoned unclaimed property under s.
2985 717.122, shall immediately forthwith be deposited by the
2986 department in the Abandoned Unclaimed Property Trust Fund. The
2987 department shall retain, from funds received under this chapter,
2988 an amount not exceeding $15 million from which the department
2989 shall make prompt payment of claims allowed by the department
2990 and shall pay the costs incurred by the department in
2991 administering and enforcing this chapter. All remaining funds
2992 received by the department under this chapter shall be deposited
2993 by the department into the State School Fund.
2994 (2) The department shall record the name and last known
2995 address of each person appearing from the holder's reports to be
2996 entitled to the abandoned unclaimed property in the total
2997 amounts of $5 or greater; the name and the last known address of
2998 each insured person or annuitant; and with respect to each
2999 policy or contract listed in the report of an insurance
3000 corporation, its number, the name of the corporation, and the

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3001 amount due.
3002 Section 55. Section 717.1235, Florida Statutes, is amended
3003 to read:
3004 717.1235 Dormant campaign accounts; report of unclaimed
3005 property.—Abandoned Unclaimed funds reported in the name of a
3006 campaign for public office, for any campaign that must dispose
3007 of surplus funds in its campaign account pursuant to s. 106.141,
3008 after being reported to the department, shall be deposited with
3009 the Chief Financial Officer to the credit of the State School
3010 Fund.
3011 Section 56. Section 717.124, Florida Statutes, is amended
3012 to read:
3013 717.124 Abandoned Unclaimed property claims.—
3014 (1) Any person, excluding another state, claiming an
3015 interest in any property paid or delivered to the department
3016 under this chapter may file with the department a claim on a
3017 form prescribed by the department and verified by the claimant
3018 or the claimant claimant's representative. The claimant's
3019 representative must be an attorney licensed to practice law in
3020 this state, a licensed Florida-certified public accountant, or a
3021 private investigator licensed under chapter 493. The claimant
3022 claimant's representative must be registered with the department
3023 under this chapter. The claimant, or the claimant claimant's
3024 representative, shall provide the department with a legible copy
3025 of a valid driver license of the claimant at the time the

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3026 original claim form is filed. If the claimant has not been
3027 issued a valid driver license at the time the original claim
3028 form is filed, the department shall be provided with a legible
3029 copy of a photographic identification of the claimant issued by
3030 the United States, a state or territory of the United States, a
3031 foreign nation, or a political subdivision or agency thereof or
3032 other evidence deemed acceptable by the department by rule. In
3033 lieu of photographic identification, a notarized sworn statement
3034 by the claimant may be provided which affirms the claimant's
3035 identity and states the claimant's full name and address. The
3036 claimant must produce to the notary photographic identification
3037 of the claimant issued by the United States, a state or
3038 territory of the United States, a foreign nation, or a political
3039 subdivision or agency thereof or other evidence deemed
3040 acceptable by the department by rule. The notary shall indicate
3041 the notary's full address on the notarized sworn statement. Any
3042 claim filed without the required identification or the sworn
3043 statement with the original claim form and the original
3044 Abandoned Unclaimed Property Recovery Agreement or Abandoned
3045 Unclaimed Property Purchase Agreement, if applicable, is void.
3046 (a) Within 90 days after receipt of a claim, the
3047 department may return any claim that provides for the receipt of
3048 fees and costs greater than that permitted under this chapter or
3049 that contains any apparent errors or omissions. The department
3050 may also request that the claimant or the claimant claimant's

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3051 representative provide additional information. The department
3052 shall retain a copy or electronic image of the claim.
3053 (b) A claim is considered to have been withdrawn by a
3054 claimant or the claimant claimant's representative if the
3055 department does not receive a response to its request for
3056 additional information within 60 days after the notification of
3057 any apparent errors or omissions.
3058 (c) Within 90 days after receipt of the claim, or the
3059 response of the claimant or the claimant claimant's
3060 representative to the department's request for additional
3061 information, whichever is later, the department shall determine
3062 each claim. Such determination shall contain a notice of rights
3063 provided by ss. 120.569 and 120.57. The 90-day period shall be
3064 extended by 60 days if the department has good cause to need
3065 additional time or if the abandoned unclaimed property:
3066 1. Is owned by a person who has been a debtor in
3067 bankruptcy;
3068 2. Was reported with an address outside of the United
3069 States;
3070 3. Is being claimed by a person outside of the United
3071 States; or
3072 4. Contains documents filed in support of the claim that
3073 are not in the English language and have not been accompanied by
3074 an English language translation.
3075 (2) A claim for a cashier's check or a stock certificate

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3076 without the original instrument may require an indemnity bond
3077 equal to the value of the claim to be provided prior to issue of
3078 the stock or payment of the claim by the department.
3079 (3) The department may require an affidavit swearing to
3080 the authenticity of the claim, lack of documentation, and an
3081 agreement to allow the department to provide the name and
3082 address of the claimant to subsequent claimants coming forward
3083 with substantiated proof to claim the account. This shall apply
3084 to claims equal to or less than $250. The exclusive remedy of a
3085 subsequent claimant to the property shall be against the person
3086 who received the property from the department.
3087 (4)(a) Except as otherwise provided in this chapter, if a
3088 claim is determined in favor of the claimant, the department
3089 shall deliver or pay over to the claimant the property or the
3090 amount the department actually received or the proceeds if it
3091 has been sold by the department, together with any additional
3092 amount required by s. 717.121.
3093 (b) If a claimant an owner authorizes a claimant
3094 representative an attorney licensed to practice law in this
3095 state, a Florida-certified public accountant, or a private
3096 investigator licensed under chapter 493, and registered with the
3097 department under this chapter, to claim the abandoned unclaimed
3098 property on the claimant's owner's behalf, the department is
3099 authorized to make distribution of the property or money in
3100 accordance with the Abandoned Unclaimed Property Recovery

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3101 Agreement or Abandoned Unclaimed Property Purchase Agreement
3102 under s. 717.135. The original Abandoned Unclaimed Property
3103 Recovery Agreement or Abandoned Unclaimed Property Purchase
3104 Agreement must be executed by the claimant or seller and must be
3105 filed with the department.
3106 (c)1. Payments of approved claims for unclaimed cash
3107 accounts must be made to the owner after deducting any fees and
3108 costs authorized by the claimant under an Abandoned Unclaimed
3109 Property Recovery Agreement. The contents of a safe-deposit box
3110 or shares of securities must be delivered directly to the
3111 claimant.
3112 2. Payments of fees and costs authorized under an
3113 Abandoned Unclaimed Property Recovery Agreement for approved
3114 claims must be made or issued to the law firm of the designated
3115 attorney licensed to practice law in this state, the public
3116 accountancy firm of the licensed Florida-certified public
3117 accountant, or the designated employing private investigative
3118 agency licensed by this state. Such payments shall be made by
3119 electronic funds transfer and may be made on such periodic
3120 schedule as the department may define by rule, provided the
3121 payment intervals do not exceed 31 days. Payment made to an
3122 attorney licensed in this state, a Florida-certified public
3123 accountant, or a private investigator licensed under chapter
3124 493, operating individually or as a sole practitioner, must be
3125 to the attorney, certified public accountant, or private

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3126 investigator.
3127 (5) The department shall not be administratively, civilly,
3128 or criminally liable for any property or funds distributed
3129 pursuant to this section, provided such distribution is made in
3130 good faith.
3131 (6) This section does not supersede the licensing
3132 requirements of chapter 493.
3133 (7) The department may allow an apparent owner to
3134 electronically submit a claim for abandoned unclaimed property
3135 to the department. If a claim is submitted electronically for
3136 $2,000 or less, the department may use a method of identity
3137 verification other than a copy of a valid driver license, other
3138 government-issued photographic identification, or a sworn
3139 notarized statement. The department may adopt rules to implement
3140 this subsection.
3141 (8) Notwithstanding any other provision of this chapter,
3142 the department may develop and implement an identification
3143 verification and disbursement process by which an account valued
3144 at $2,000 or less, after being received by the department and
3145 added to the abandoned unclaimed property database, may be
3146 disbursed to an apparent owner after the department has verified
3147 that the apparent owner is living and that the apparent owner's
3148 current address is correct. The department shall include with
3149 the payment a notification and explanation of the dollar amount,
3150 the source, and the property type of each account included in

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3151 the disbursement. The department shall adopt rules to implement
3152 this subsection.
3153 (9)(a) Notwithstanding any other provision of this
3154 chapter, the department may develop and implement a verification
3155 and disbursement process by which an account, after being
3156 received by the department and added to the abandoned unclaimed
3157 property database, for which the apparent owner entity is:
3158 1. A state agency in this state or a subdivision or
3159 successor agency thereof;
3160 2. A county government in this state or a subdivision
3161 thereof;
3162 3. A public school district in this state or a subdivision
3163 thereof;
3164 4. A municipality in this state or a subdivision thereof;
3165 or
3166 5. A special taxing district or authority in this state,
3167
3168 may be disbursed to the apparent owner entity or successor
3169 entity. The department shall include with the payment a
3170 notification and explanation of the dollar amount, the source,
3171 and the property type of each account included in the
3172 disbursement.
3173 (b) The department may adopt rules to implement this
3174 subsection.
3175 (10) Notwithstanding any other provision of this chapter,

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3176 the department may develop a process by which a claimant
3177 claimant's representative or a buyer of unclaimed property may
3178 electronically submit to the department an electronic image of a
3179 completed claim and claims-related documents under this chapter,
3180 including an Abandoned Unclaimed Property Recovery Agreement or
3181 Abandoned Unclaimed Property Purchase Agreement that has been
3182 signed and dated by a claimant or seller under s. 717.135, after
3183 the claimant claimant's representative or the buyer of unclaimed
3184 property receives the original documents provided by the
3185 claimant or the seller for any claim. Each claim filed by a
3186 claimant claimant's representative or a buyer of unclaimed
3187 property must include a statement by the claimant claimant's
3188 representative or the buyer of unclaimed property attesting that
3189 all documents are true copies of the original documents and that
3190 all original documents are physically in the possession of the
3191 claimant claimant's representative or the buyer of unclaimed
3192 property. All original documents must be kept in the original
3193 form, by claim number, under the secure control of the claimant
3194 claimant's representative or the buyer of unclaimed property and
3195 must be available for inspection by the department in accordance
3196 with s. 717.1315. The department may adopt rules to implement
3197 this subsection.
3198 (11) This section applies to all abandoned unclaimed
3199 property reported and remitted to the Chief Financial Officer,
3200 including, but not limited to, property reported pursuant to ss.

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3201 45.032, 732.107, 733.816, and 744.534.
3202 Section 57. Section 717.12403, Florida Statutes, is
3203 amended to read:
3204 717.12403 Abandoned Unclaimed demand, savings, or checking
3205 account in a financial institution held in the name of more than
3206 one person.—
3207 (1)(a) If an abandoned unclaimed demand, savings, or
3208 checking account in a financial institution is reported as an
3209 "and" account in the name of two or more persons who are not
3210 beneficiaries, it is presumed that each person must claim the
3211 account in order for the claim to be approved by the department.
3212 This presumption may be rebutted by showing that entitlement to
3213 the account has been transferred to another person or by clear
3214 and convincing evidence demonstrating that the account should
3215 have been reported by the financial institution as an "or"
3216 account.
3217 (b) If an abandoned unclaimed demand, savings, or checking
3218 account in a financial institution is reported as an "and"
3219 account and one of the persons on the account is deceased, it is
3220 presumed that the account is a survivorship account. This
3221 presumption may be rebutted by showing that entitlement to the
3222 account has been transferred to another person or by clear and
3223 convincing evidence demonstrating that the account is not a
3224 survivorship account.
3225 (2) If an abandoned unclaimed demand, savings, or checking

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3226 account in a financial institution is reported as an "or"
3227 account in the name of two or more persons who are not
3228 beneficiaries, it is presumed that either person listed on the
3229 account may claim the entire amount held in the account. This
3230 presumption may be rebutted by showing that entitlement to the
3231 account has been transferred to another person or by clear and
3232 convincing evidence demonstrating that the account should have
3233 been reported by the financial institution as an "and" account.
3234 (3) If an abandoned unclaimed demand, savings, or checking
3235 account in a financial institution is reported in the name of
3236 two or more persons who are not beneficiaries without
3237 identifying whether the account is an "and" account or an "or"
3238 account, it is presumed that the account is an "or" account.
3239 This presumption may be rebutted by showing that entitlement to
3240 the account has been transferred to another person or by clear
3241 and convincing evidence demonstrating that the account should
3242 have been reported by the financial institution as an "and"
3243 account.
3244 (4) The department shall be deemed to have made a
3245 distribution in good faith if the department remits funds
3246 consistent with this section.
3247 Section 58. Subsection (2) of section 717.12404, Florida
3248 Statutes, is amended to read:
3249 717.12404 Claims on behalf of a business entity or trust.—
3250 (2) Claims on behalf of an active or a dissolved

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3251 corporation, a business entity other than an active corporation,
3252 or a trust must include a legible copy of a valid driver license
3253 of the person acting on behalf of the dissolved corporation,
3254 business entity other than an active corporation, or trust. If
3255 the person has not been issued a valid driver license, the
3256 department shall be provided with a legible copy of a
3257 photographic identification of the person issued by the United
3258 States, a foreign nation, or a political subdivision or agency
3259 thereof. In lieu of photographic identification, a notarized
3260 sworn statement by the person may be provided which affirms the
3261 person's identity and states the person's full name and address.
3262 The person must produce his or her photographic identification
3263 issued by the United States, a state or territory of the United
3264 States, a foreign nation, or a political subdivision or agency
3265 thereof or other evidence deemed acceptable by the department by
3266 rule. The notary shall indicate the notary's full address on the
3267 notarized sworn statement. Any claim filed without the required
3268 identification or the sworn statement with the original claim
3269 form and the original Abandoned Unclaimed Property Recovery
3270 Agreement or Abandoned Unclaimed Property Purchase Agreement, if
3271 applicable, is void.
3272 Section 59. Section 717.12405, Florida Statutes, is
3273 amended to read:
3274 717.12405 Claims by estates.—An estate or any person
3275 representing an estate or acting on behalf of an estate may

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3276 claim abandoned unclaimed property only after the heir or
3277 legatee of the decedent entitled to the property has been
3278 located. Any estate, or any person representing an estate or
3279 acting on behalf of an estate, that receives abandoned unclaimed
3280 property before the heir or legatee of the decedent entitled to
3281 the property has been located, is personally liable for the
3282 abandoned unclaimed property and must immediately return the
3283 full amount of the abandoned unclaimed property or the value
3284 thereof to the department in accordance with s. 717.1341.
3285 Section 60. Section 717.12406, Florida Statutes, is
3286 amended to read:
3287 717.12406 Joint ownership of abandoned unclaimed
3288 securities or dividends.—For the purpose of determining joint
3289 ownership of abandoned unclaimed securities or dividends, the
3290 term:
3291 (1) "TEN COM" means tenants in common.
3292 (2) "TEN ENT" means tenants by the entireties.
3293 (3) "JT TEN" or "JT" means joint tenants with the right of
3294 survivorship and not as tenants in common.
3295 (4) "And" means tenants in common with each person
3296 entitled to an equal pro rata share.
3297 (5) "Or" means that each person listed on the account is
3298 entitled to all of the funds.
3299 Section 61. Section 717.1241, Florida Statutes, is amended
3300 to read:

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3301 717.1241 Conflicting claims.—
3302 (1) For purposes of this section, the term "conflicting
3303 claim" means two or more claims received by the department for
3304 the same abandoned property account or accounts in which two or
3305 more claimants appear to be equally entitled to the property.
3306 The term also includes circumstances in which the same claimant
3307 has more than one claim pending for the same property, including
3308 when the claimant is represented by more than one claimant
3309 representative or submits both a personal claim and a claim
3310 through a representative.
3311 (2) When conflicting claims have been received by the
3312 department for the same abandoned unclaimed property account or
3313 accounts, the property shall be remitted in accordance with the
3314 claim filed by the person as follows, notwithstanding the
3315 withdrawal of a claim:
3316 (a) To the person submitting the first claim received by
3317 the Division of Unclaimed Property of the department that is
3318 complete or made complete.
3319 (b) If a claimant's claim and a claimant claimant's
3320 representative's claim for the recovery of property are received
3321 by the Division of Unclaimed Property of the department on the
3322 same day and both claims are complete, to the claimant.
3323 (c) If a buyer's claim or a purchasing claimant
3324 representative's claim and a claimant's claim or a claimant
3325 claimant's representative's claim for the recovery of property

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3326 are received by the Division of Unclaimed Property of the
3327 department on the same day and the claims are complete, to the
3328 buyer.
3329 (d) As between two or more claimant representatives'
3330 claimant's representative's claims received by the Division of
3331 Unclaimed Property of the department that are complete or made
3332 complete on the same day, to the claimant claimant's
3333 representative who has agreed to receive the lowest fee. If the
3334 two or more claimant claimant's representatives whose claims
3335 received by the Division of Unclaimed Property of the department
3336 were complete or made complete on the same day are charging the
3337 same lowest fee, the fee shall be divided equally between the
3338 claimant claimant's representatives.
3339 (e) If more than one buyer's claim received by the
3340 Division of Unclaimed Property of the department is complete or
3341 made complete on the same day, the department shall remit the
3342 abandoned unclaimed property to the buyer who paid the highest
3343 amount to the seller. If the buyers paid the same amount to the
3344 seller, the department shall remit the abandoned unclaimed
3345 property to the buyers divided in equal amounts.
3346 (3)(2) The purpose of this section is solely to provide
3347 guidance to the department regarding to whom it should remit the
3348 abandoned unclaimed property and is not intended to extinguish
3349 or affect any private cause of action that any person may have
3350 against another person for breach of contract or other statutory

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3351 or common-law remedy. A buyer's sole remedy, if any, shall be
3352 against the claimant claimant's representative or the seller, or
3353 both. A claimant claimant's representative's sole remedy, if
3354 any, shall be against the buyer or the seller, or both. A
3355 claimant's or seller's sole remedy, if any, shall be against the
3356 buyer or the claimant claimant's representative, or both.
3357 Nothing in this section forecloses the right of a person to
3358 challenge the department's determination of completeness in a
3359 proceeding under ss. 120.569 and 120.57.
3360 (4)(3) A claim is complete when entitlement to the
3361 abandoned unclaimed property has been established.
3362 Section 62. Subsection (1) of section 717.1242, Florida
3363 Statutes, is amended to read:
3364 717.1242 Restatement of jurisdiction of the circuit court
3365 sitting in probate and the department.—
3366 (1) It is and has been the intent of the Legislature that,
3367 pursuant to s. 26.012(2)(b), circuit courts have jurisdiction of
3368 proceedings relating to the settlement of the estates of
3369 decedents and other jurisdiction usually pertaining to courts of
3370 probate. It is and has been the intent of the Legislature that,
3371 pursuant to this chapter, the department determines the merits
3372 of claims and entitlement to abandoned unclaimed property paid
3373 or delivered to the department under this chapter. Consistent
3374 with this legislative intent, any beneficiary, devisee, heir,
3375 personal representative, or other interested person, as those

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3376 terms are defined in the Florida Probate Code and the Florida
3377 Trust Code, of an estate seeking to obtain property paid or
3378 delivered to the department under this chapter must file a claim
3379 with the department as provided in s. 717.124.
3380 Section 63. Subsections (1) and (4) of section 717.1243,
3381 Florida Statutes, are amended to read:
3382 717.1243 Small estate accounts.—
3383 (1) A claim for abandoned unclaimed property made by a
3384 beneficiary, as defined in s. 731.201, of a deceased owner need
3385 not be accompanied by an order of a probate court if the
3386 claimant files with the department an affidavit, signed by all
3387 beneficiaries, stating that all the beneficiaries have amicably
3388 agreed among themselves upon a division of the estate and that
3389 all funeral expenses, expenses of the last illness, and any
3390 other lawful claims have been paid, and any additional
3391 information reasonably necessary to make a determination of
3392 entitlement. If the owner died testate, the claim shall be
3393 accompanied by a copy of the will.
3394 (4) This section applies only if all of the abandoned
3395 unclaimed property held by the department on behalf of the owner
3396 has an aggregate value of $20,000 or less and no probate
3397 proceeding is pending.
3398 Section 64. Section 717.1244, Florida Statutes, is amended
3399 to read:
3400 717.1244 Determinations of abandoned unclaimed property

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3401 claims.—In rendering a determination regarding the merits of an
3402 abandoned unclaimed property claim, the department shall rely on
3403 the applicable statutory, regulatory, common, and case law.
3404 Agency statements applying the statutory, regulatory, common,
3405 and case law to abandoned unclaimed property claims are not
3406 agency statements subject to s. 120.56(4).
3407 Section 65. Section 717.1245, Florida Statutes, is amended
3408 to read:
3409 717.1245 Garnishment of abandoned unclaimed property.—If
3410 any person files a petition for writ of garnishment seeking to
3411 obtain property paid or delivered to the department under this
3412 chapter, the petitioner shall be ordered to pay the department
3413 reasonable costs and attorney attorney's fees in any proceeding
3414 brought by the department to oppose, appeal, or collaterally
3415 attack the petition or writ if the department is the prevailing
3416 party in any such proceeding.
3417 Section 66. Subsection (1) of section 717.125, Florida
3418 Statutes, is amended to read:
3419 717.125 Claim of another state to recover property;
3420 procedure.—
3421 (1) At any time after property has been paid or delivered
3422 to the department under this chapter, another state may recover
3423 the property if:
3424 (a) The property was subjected to custody by this state
3425 because the records of the holder did not reflect the last known

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3426 address of the apparent owner when the property was presumed
3427 abandoned unclaimed under this chapter, and the other state
3428 establishes that the last known address of the apparent owner or
3429 other person entitled to the property was in that state and
3430 under the laws of that state the property escheated to or was
3431 subject to a claim of abandonment or being unclaimed by that
3432 state;
3433 (b) The last known address of the apparent owner or other
3434 person entitled to the property, as reflected by the records of
3435 the holder, is in the other state and under the laws of that
3436 state the property has escheated to or become subject to a claim
3437 of abandonment by that state;
3438 (c) The records of the holder were erroneous in that they
3439 did not accurately reflect the actual owner of the property and
3440 the last known address of the actual owner is in the other state
3441 and under laws of that state the property escheated to or was
3442 subject to a claim of abandonment by that state;
3443 (d) The property was subject to custody by this state
3444 under s. 717.103(6) and under the laws of the state of domicile
3445 of the holder the property has escheated to or become subject to
3446 a claim of abandonment by that state; or
3447 (e) The property is the sum payable on a traveler's check,
3448 money order, or other similar instrument that was subjected to
3449 custody by this state under s. 717.104, and the instrument was
3450 purchased in the other state, and under the laws of that state

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3451 the property escheated to or became subject to a claim of
3452 abandonment by that state.
3453 Section 67. Subsection (1) of section 717.126, Florida
3454 Statutes, is amended to read:
3455 717.126 Administrative hearing; burden of proof; proof of
3456 entitlement; venue.—
3457 (1) Any person aggrieved by a decision of the department
3458 may petition for a hearing as provided in ss. 120.569 and
3459 120.57. In any proceeding for determination of a claim to
3460 property paid or delivered to the department under this chapter,
3461 the burden shall be upon the claimant to establish entitlement
3462 to the property by a preponderance of evidence. Having the same
3463 name as that reported to the department is not sufficient, in
3464 the absence of other evidence, to prove entitlement to abandoned
3465 unclaimed property.
3466 Section 68. Section 717.1261, Florida Statutes, is amended
3467 to read:
3468 717.1261 Death certificates.—Any person who claims
3469 entitlement to abandoned unclaimed property by means of the
3470 death of one or more persons shall file a copy of the death
3471 certificate of the decedent or decedents that has been certified
3472 as being authentic by the issuing governmental agency.
3473 Section 69. Section 717.1262, Florida Statutes, is amended
3474 to read:
3475 717.1262 Court documents.—Any person who claims

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3476 entitlement to abandoned unclaimed property by reason of a court
3477 document shall file a certified copy of the court document with
3478 the department. A certified copy of each pleading filed with the
3479 court to obtain a court document establishing entitlement, filed
3480 within 180 days before the date the claim form was signed by the
3481 claimant or claimant claimant's representative, must also be
3482 filed with the department.
3483 Section 70. Section 717.129, Florida Statutes, is amended
3484 to read:
3485 717.129 Periods of limitation.—
3486 (1) The expiration before or after July 1, 1987, of any
3487 period of time specified by contract, statute, or court order,
3488 during which a claim for money or property may be made or during
3489 which an action or proceeding may be commenced or enforced to
3490 obtain payment of a claim for money or to recover property, does
3491 not prevent the money or property from being presumed abandoned
3492 unclaimed or affect any duty to file a report or to pay or
3493 deliver abandoned unclaimed property to the department as
3494 required by this chapter.
3495 (2) The department may not commence an action or
3496 proceeding to enforce this chapter with respect to the
3497 reporting, payment, or delivery of property or any other duty of
3498 a holder under this chapter more than 10 years after the duty
3499 arose. The period of limitation established under this
3500 subsection is tolled by the earlier of the department's or audit

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3501 agent's delivery of a notice that a holder is subject to an
3502 audit or examination under s. 717.1301 or the holder's written
3503 election to enter into an abandoned unclaimed property voluntary
3504 disclosure agreement.
3505 Section 71. Subsections (3) and (4) of section 717.1301,
3506 Florida Statutes, are amended to read:
3507 717.1301 Investigations; examinations; subpoenas.—
3508 (3) The department may authorize a compliance review of a
3509 report for a specified reporting year. The review must be
3510 limited to the contents of the report filed, as required by s.
3511 717.117 and subsection (2), and all supporting documents related
3512 to the reports. If the review results in a finding of a
3513 deficiency in abandoned unclaimed property due and payable to
3514 the department, the department shall notify the holder in
3515 writing of the amount of deficiency within 1 year after the
3516 authorization of the compliance review. If the holder fails to
3517 pay the deficiency within 90 days, the department may seek to
3518 enforce the assessment under subsection (1). The department is
3519 not required to conduct a review under this section before
3520 initiating an audit.
3521 (4) Notwithstanding any other provision of law, in a
3522 contract providing for the location or collection of abandoned
3523 unclaimed property, the department may authorize the contractor
3524 to deduct its fees and expenses for services provided under the
3525 contract from the abandoned unclaimed property that the

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3526 contractor has recovered or collected under the contract. The
3527 department shall annually report to the Chief Financial Officer
3528 the total amount collected or recovered by each contractor
3529 during the previous fiscal year and the total fees and expenses
3530 deducted by each contractor.
3531 Section 72. Section 717.1315, Florida Statutes, is amended
3532 to read:
3533 717.1315 Retention of records by claimant claimant's
3534 representatives and buyers of abandoned unclaimed property.—
3535 (1) Every claimant claimant's representative and buyer of
3536 abandoned unclaimed property shall keep and use in his or her
3537 business such books, accounts, and records of the business
3538 conducted under this chapter to enable the department to
3539 determine whether such person is complying with this chapter and
3540 the rules adopted by the department under this chapter. Every
3541 claimant claimant's representative and buyer of abandoned
3542 unclaimed property shall preserve such books, accounts, and
3543 records, including every Abandoned Unclaimed Property Recovery
3544 Agreement or Abandoned Unclaimed Property Purchase Agreement
3545 between the owner and such claimant claimant's representative or
3546 buyer, for at least 3 years after the date of the initial
3547 agreement.
3548 (2) A claimant claimant's representative or buyer of
3549 abandoned unclaimed property, operating at two or more places of
3550 business in this state, may maintain the books, accounts, and

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3551 records of all such offices at any one of such offices, or at
3552 any other office maintained by such claimant claimant's
3553 representative or buyer of abandoned unclaimed property, upon
3554 the filing of a written notice with the department designating
3555 in the written notice the office at which such records are
3556 maintained.
3557 (3) A claimant claimant's representative or buyer of
3558 abandoned unclaimed property shall make all books, accounts, and
3559 records available at a convenient location in this state upon
3560 request of the department.
3561 Section 73. Subsections (2) and (3) of section 717.132,
3562 Florida Statutes, are amended to read:
3563 717.132 Enforcement; cease and desist orders; fines.—
3564 (2) In addition to any other powers conferred upon it to
3565 enforce and administer the provisions of this chapter, the
3566 department may issue and serve upon a person an order to cease
3567 and desist and to take corrective action whenever the department
3568 finds that such person is violating, has violated, or is about
3569 to violate any provision of this chapter, any rule or order
3570 promulgated under this chapter, or any written agreement entered
3571 into with the department. For purposes of this subsection, the
3572 term "corrective action" includes refunding excessive charges,
3573 requiring a person to return abandoned unclaimed property,
3574 requiring a holder to remit abandoned unclaimed property, and
3575 requiring a holder to correct a report that contains errors or

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3576 omissions. Any such order shall contain a notice of rights
3577 provided by ss. 120.569 and 120.57.
3578 (3) In addition to any other powers conferred upon it to
3579 enforce and administer the provisions of this chapter, the
3580 department or a court of competent jurisdiction may impose fines
3581 against any person found to have violated any provision of this
3582 chapter, any rule or order promulgated under this chapter, or
3583 any written agreement entered into with the department in an
3584 amount not to exceed $2,000 for each violation. All fines
3585 collected under this subsection shall be deposited as received
3586 in the Abandoned Unclaimed Property Trust Fund.
3587 Section 74. Paragraphs (c), (d), and (j) of subsection
3588 (1), subsections (2) and (3), paragraph (b) of subsection (4),
3589 and subsection (5) of section 717.1322, Florida Statutes, are
3590 amended to read:
3591 717.1322 Administrative and civil enforcement.—
3592 (1) The following acts are violations of this chapter and
3593 constitute grounds for an administrative enforcement action by
3594 the department in accordance with the requirements of chapter
3595 120 and for civil enforcement by the department in a court of
3596 competent jurisdiction:
3597 (c) Fraudulent Misrepresentation, circumvention, or
3598 concealment of any matter required to be stated or furnished to
3599 the department or to an owner or apparent owner under this
3600 chapter, regardless of reliance by or damage to the owner or

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3601 apparent owner.
3602 (d) Willful Imposition of illegal or excessive charges in
3603 any abandoned unclaimed property transaction.
3604 (j) Requesting or receiving compensation for notifying a
3605 person of his or her abandoned unclaimed property or assisting
3606 another person in filing a claim for abandoned unclaimed
3607 property, unless the person is an attorney licensed to practice
3608 law in this state, a Florida-certified public accountant, or a
3609 private investigator licensed under chapter 493, or entering
3610 into, or making a solicitation to enter into, an agreement to
3611 file a claim for abandoned unclaimed property owned by another,
3612 unless such person is a registered claimant representative
3613 registered with the department under this chapter and an
3614 attorney licensed to practice law in this state in the regular
3615 practice of her or his profession, a Florida-certified public
3616 accountant who is acting within the scope of the practice of
3617 public accounting as defined in chapter 473, or a private
3618 investigator licensed under chapter 493. This paragraph does not
3619 apply to a person who has been granted a durable power of
3620 attorney to convey and receive all of the real and personal
3621 property of the owner, is the court-appointed guardian of the
3622 owner, has been employed as an attorney or qualified
3623 representative to contest the department's denial of a claim, or
3624 has been employed as an attorney to probate the estate of the
3625 owner or an heir or legatee of the owner.

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3626 (2) Upon a finding by the department that any person has
3627 committed any of the acts set forth in subsection (1), the
3628 department may enter an order doing any of the following:
3629 (a) Revoking for a minimum of 5 years or suspending for a
3630 maximum of 5 years a registration previously granted under this
3631 chapter during which time the registrant may not reapply for a
3632 registration under this chapter.;
3633 (b) Placing a claimant representative registrant or an
3634 applicant for a registration on probation for a period of time
3635 and subject to such conditions as the department may specify.;
3636 (c) Placing permanent restrictions or conditions upon
3637 issuance or maintenance of a registration under this chapter;
3638 (d) Issuing a reprimand.;
3639 (e) Imposing an administrative fine not to exceed $2,000
3640 for each such act.; or
3641 (f) Prohibiting any person from being a director, officer,
3642 agent, employee, or ultimate equitable owner of a 10 percent 10-
3643 percent or greater interest in an employer of a claimant
3644 representative registrant.
3645 (3) A claimant claimant's representative is subject to
3646 civil enforcement and the disciplinary actions specified in
3647 subsection (2) for violations of subsection (1) by an agent or
3648 employee of the claimant representative's registrant's employer
3649 if the claimant claimant's representative knew or should have
3650 known that such agent or employee was violating any provision of

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3651 this chapter.
3652 (4)
3653 (b) The disciplinary guidelines shall specify a meaningful
3654 range of designated penalties based upon the severity or
3655 repetition of specific offenses, or both. It is the legislative
3656 intent that minor violations be distinguished from more serious
3657 violations; that such guidelines consider the amount of the
3658 claim involved, the complexity of locating the owner, the steps
3659 taken to ensure the accuracy of the claim by the person filing
3660 the claim, the acts of commission and omission of the claimant
3661 ultimate owners in establishing themselves as rightful owners of
3662 the funds, the acts of commission or omission of the agent or
3663 employee of a claimant representative or its an employer in the
3664 filing of the claim, the actual knowledge of the agent,
3665 employee, employer, or owner in the filing of the claim, the
3666 departure, if any, by the agent or employee from the internal
3667 controls and procedures established by the claimant
3668 representative or its employer with regard to the filing of a
3669 claim, the number of defective claims previously filed by the
3670 agent, employee, employer, or owner; that such guidelines
3671 provide reasonable and meaningful notice of likely penalties
3672 that may be imposed for proscribed conduct; and that such
3673 penalties be consistently applied by the department.
3674 (5) The department may seek any appropriate civil legal
3675 remedy available to it by filing a civil action in a court of

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3676 competent jurisdiction against any person who has, directly or
3677 through a claimant claimant's representative, wrongfully
3678 submitted a claim as the ultimate owner of property and
3679 improperly received funds from the department in violation of
3680 this chapter.
3681 Section 75. Subsections (1) and (3) of section 717.133,
3682 Florida Statutes, are amended to read:
3683 717.133 Interstate agreements and cooperation; joint and
3684 reciprocal actions with other states.—
3685 (1) The department may enter into agreements with other
3686 states to exchange information needed to enable this or another
3687 state to audit or otherwise determine abandoned unclaimed
3688 property that it or another state may be entitled to subject to
3689 a claim of custody. The department may require the reporting of
3690 information needed to enable compliance with agreements made
3691 pursuant to this section and prescribe the form.
3692 (3) At the request of another state, the department may
3693 bring an action in the name of the other state in any court of
3694 competent jurisdiction to enforce the abandoned unclaimed
3695 property laws of the other state against a holder in this state
3696 of property subject to escheat or a claim of abandonment by the
3697 other state, if the other state has agreed to pay expenses
3698 incurred in bringing the action.
3699 Section 76. Subsection (2) of section 717.1333, Florida
3700 Statutes, is amended to read:

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3701 717.1333 Evidence; estimations; audit reports and
3702 worksheets, investigator reports and worksheets, other related
3703 documents.—
3704 (2) If the records of the holder that are available for
3705 the periods subject to this chapter are insufficient to permit
3706 the preparation of a report of the abandoned unclaimed property
3707 due and owing by a holder, or if the holder fails to provide
3708 records after being requested to do so, the amount due to the
3709 department may be reasonably estimated.
3710 Section 77. Paragraph (a) of subsection (1) and
3711 subsections (2) and (4) of section 717.1341, Florida Statutes,
3712 are amended to read:
3713 717.1341 Invalid claims, recovery of property, interest
3714 and penalties.—
3715 (1)(a) A No person may not shall receive abandoned
3716 unclaimed property that the person is not entitled to receive.
3717 Any person who receives, or assists another person to receive,
3718 abandoned unclaimed property that the person is not entitled to
3719 receive is strictly, jointly, personally, and severally liable
3720 for the abandoned unclaimed property and shall immediately
3721 return the property, or the reasonable value of the property if
3722 the property has been damaged or disposed of, to the department
3723 plus interest at the rate set in accordance with s. 55.03(1).
3724 Assisting another person to receive abandoned unclaimed property
3725 includes executing a claim form on the person's behalf.

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3726 (2) The department may maintain a civil or administrative
3727 action:
3728 (a) To recover abandoned unclaimed property that was paid
3729 or remitted to a person who was not entitled to the abandoned
3730 unclaimed property or to offset amounts owed to the department
3731 against amounts owed to an owner representative;
3732 (b) Against a person who assists another person in
3733 receiving, or attempting to receive, abandoned unclaimed
3734 property that the person is not entitled to receive; or
3735 (c) Against a person who attempts to receive abandoned
3736 unclaimed property that the person is not entitled to receive.
3737 (4) A No person may not shall knowingly file, knowingly
3738 conspire to file, or knowingly assist in filing, a claim for
3739 abandoned unclaimed property the person is not entitled to
3740 receive. Any person who violates this subsection regarding
3741 abandoned unclaimed property of an aggregate value:
3742 (a) Greater than $50,000, commits is guilty of a felony of
3743 the first degree, punishable as provided in s. 775.082, s.
3744 775.083, or s. 775.084;
3745 (b) Greater than $10,000 up to $50,000, commits is guilty
3746 of a felony of the second degree, punishable as provided in s.
3747 775.082, s. 775.083, or s. 775.084;
3748 (c) Greater than $250 up to $10,000, commits is guilty of
3749 a felony of the third degree, punishable as provided in s.
3750 775.082, s. 775.083, or s. 775.084;

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3751 (d) Greater than $50 up to $250, commits is guilty of a
3752 misdemeanor of the first degree, punishable as provided in s.
3753 775.082 or s. 775.083; or
3754 (e) Up to $50, commits is guilty of a misdemeanor of the
3755 second degree, punishable as provided in s. 775.082 or s.
3756 775.083.
3757 Section 78. Section 717.135, Florida Statutes, is amended
3758 to read:
3759 717.135 Recovery agreements and purchase agreements for
3760 claims filed by a claimant claimant's representative; fees and
3761 costs or total net gain.—
3762 (1) In order to protect the interests of owners of
3763 abandoned unclaimed property, the department shall adopt by rule
3764 a form entitled "Abandoned Unclaimed Property Recovery
3765 Agreement" and a form entitled "Abandoned Unclaimed Property
3766 Purchase Agreement."
3767 (2) The Abandoned Unclaimed Property Recovery Agreement
3768 and the Abandoned Unclaimed Property Purchase Agreement must
3769 include and disclose all of the following:
3770 (a) The total dollar amount of abandoned unclaimed
3771 property accounts claimed or sold.
3772 (b) The total percentage of all authorized fees and costs
3773 to be paid to the claimant claimant's representative or the
3774 percentage of the value of the property to be paid as net gain
3775 to the purchasing claimant claimant's representative.

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3776 (c) The total dollar amount to be deducted and received
3777 from the claimant as fees and costs by the claimant claimant's
3778 representative or the total net dollar amount to be received by
3779 the purchasing claimant claimant's representative.
3780 (d) The net dollar amount to be received by the claimant
3781 or the seller.
3782 (e) For each account claimed, the abandoned unclaimed
3783 property account number.
3784 (f) For the Abandoned Unclaimed Property Purchase
3785 Agreement, a statement that the amount of the purchase price
3786 will be remitted to the seller by the purchaser within 30 days
3787 after the execution of the agreement by the seller.
3788 (g) The name, address, e-mail address, phone number, and
3789 license number of the claimant claimant's representative.
3790 (h)1. The manual signature of the claimant or seller and
3791 the date signed, affixed on the agreement by the claimant or
3792 seller.
3793 2. Notwithstanding any other provision of this chapter to
3794 the contrary, the department may allow an apparent owner, who is
3795 also the claimant or seller, to sign the agreement
3796 electronically. All electronic signatures on the Abandoned
3797 Unclaimed Property Recovery Agreement and the Abandoned
3798 Unclaimed Property Purchase Agreement must be affixed on the
3799 agreement by the claimant or seller using the specific,
3800 exclusive eSignature product and protocol authorized by the

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3801 department.
3802 (i) The social security number or taxpayer identification
3803 number of the claimant or seller, if a number has been issued to
3804 the claimant or seller.
3805 (j) The total fees and costs, or the total discount in the
3806 case of a purchase agreement, which may not exceed 30 percent of
3807 the claimed amount. In the case of a recovery agreement, if the
3808 total fees and costs exceed 30 percent, the fees and costs shall
3809 be reduced to 30 percent and the net balance shall be remitted
3810 directly by the department to the claimant. In the case of a
3811 purchase agreement, if the total net gain of the claimant
3812 claimant's representative exceeds 30 percent, the claim will be
3813 denied.
3814 (3) For an Abandoned Unclaimed Property Purchase Agreement
3815 form, proof that the purchaser has made payment must be filed
3816 with the department along with the claim. If proof of payment is
3817 not provided, the claim is void.
3818 (4) A claimant claimant's representative must use the
3819 Abandoned Unclaimed Property Recovery Agreement or the Abandoned
3820 Unclaimed Property Purchase Agreement as the exclusive means of
3821 entering into an agreement or a contract with a claimant or
3822 seller to file a claim with the department.
3823 (5) Fees and costs may be owed or paid to, or received by,
3824 a claimant claimant's representative only after a filed claim
3825 has been approved and if the claimant's representative used an

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3826 agreement authorized by this section.
3827 (6) A claimant claimant's representative may not use or
3828 distribute any other agreement of any type, conveyed by any
3829 method, with respect to the claimant or seller which relates,
3830 directly or indirectly, to abandoned unclaimed property accounts
3831 held by the department or the Chief Financial Officer other than
3832 the agreements authorized by this section. Any engagement,
3833 authorization, recovery, or fee agreement that is not authorized
3834 by this section is void. A claimant claimant's representative is
3835 subject to administrative and civil enforcement under s.
3836 717.1322 if he or she uses an agreement that is not authorized
3837 by this section and if the agreement is used to apply, directly
3838 or indirectly, to abandoned unclaimed property held by this
3839 state. This subsection does not prohibit lawful nonagreement,
3840 noncontractual, or advertising communications between or among
3841 the parties.
3842 (7) The Abandoned Unclaimed Property Recovery Agreement
3843 may not contain language that makes the agreement irrevocable or
3844 that creates an assignment of any portion of abandoned unclaimed
3845 property held by the department.
3846 (8) When a claim is approved, the department may pay any
3847 additional account that is owned by the claimant but has not
3848 been claimed at the time of approval, provided that a subsequent
3849 claim has not been filed or is not pending for the claimant at
3850 the time of approval.

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3851 (9) This section does not supersede s. 717.1241.
3852 (10) This section does not apply to the sale and purchase
3853 of Florida-held unclaimed property accounts through a bankruptcy
3854 estate representative or other person or entity authorized
3855 pursuant to Title XI of the United States Code or an order of a
3856 bankruptcy court to act on behalf or for the benefit of the
3857 debtor, its creditors, and its bankruptcy estate.
3858 Section 79. Section 717.1356, Florida Statutes, is created
3859 to read:
3860 717.1356 Purchase of abandoned property.—
3861 (1) Agreements for the purchase of abandoned property
3862 reported to the department shall be valid only if all of the
3863 following conditions are met:
3864 (a) The agreement is entitled "Florida Abandoned Property
3865 Purchase Agreement" and is in writing, in minimum 12-point type.
3866 (b) The agreement includes the social security number or
3867 taxpayer identification number of the seller, if a number has
3868 been issued to the seller; a valid e-mail address, mailing
3869 address, and telephone number for the seller; and is manually
3870 signed and dated by the seller with the signature notarized.
3871 (c) The agreement discloses with specificity the nature
3872 and value of the abandoned property, including the name of the
3873 apparent owner as shown by the records of the department, the
3874 name of the holder who remitted the property, the date of last
3875 contact, and the property category. With respect to the value of

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3876 the abandoned property, the agreement must contain the
3877 following:
3878 1. The total dollar amount of all abandoned property to be
3879 sold.
3880 2. The total percentage of the value of the abandoned
3881 property to be paid as net gain to the purchaser.
3882 3. The total net dollar amount to be received by the
3883 purchaser.
3884 4. The net dollar amount to be received by the seller.
3885 (d) The agreement states the abandoned property account
3886 number for each abandoned property account sold.
3887 (e) The purchase price does not discount the total value
3888 of all abandoned property subject to the sale by more than 30
3889 percent.
3890 (f) The agreement states that the amount of the purchase
3891 price will be remitted to the seller by the purchaser within 30
3892 days after the execution of the agreement by the seller.
3893 (g) The agreement includes the name, address, e-mail
3894 address, and phone number of the purchaser.
3895 (h) The agreement states that the abandoned property is
3896 currently in the department's custody and that the seller can
3897 claim the property directly from the department on its
3898 electronically searchable website without being charged a fee.
3899 The agreement must provide the department's website address.
3900 (2) A seller may cancel a purchase agreement without

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3901 penalty or obligation within 15 business days after the date on
3902 which the agreement was executed. The agreement must contain the
3903 following language in minimum 12-point type: "You may cancel
3904 this agreement for any reason without penalty or obligation to
3905 you within 15 days after the date of this agreement by providing
3906 notice to . . .(name of purchaser). . ., submitted in writing
3907 and sent by certified mail, return receipt requested, or other
3908 form of mailing that provides proof thereof, at the address or
3909 e-mail address specified in the agreement."
3910 (3) A copy of an executed Florida Abandoned Property
3911 Purchase Agreement must be filed with the purchaser's claim,
3912 along with proof that the purchaser has made payment in full,
3913 and all other required documentation. If proof of payment is not
3914 provided, the department may not approve the claim.
3915 (4) A purchase agreement under this section that discounts
3916 the value of abandoned property by more than the amount
3917 authorized in paragraph (1)(e) is enforceable only by the
3918 seller.
3919 Section 80. Section 717.138, Florida Statutes, is amended
3920 to read:
3921 717.138 Rulemaking authority.—The department shall
3922 administer and provide for the enforcement of this chapter. The
3923 department has authority to adopt rules pursuant to ss.
3924 120.536(1) and 120.54 to implement the provisions of this
3925 chapter. The department may adopt rules to allow for electronic

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3926 filing of fees, forms, and reports required by this chapter. The
3927 authority to adopt rules pursuant to this chapter applies to all
3928 abandoned unclaimed property reported and remitted to the Chief
3929 Financial Officer, including, but not limited to, property
3930 reported and remitted pursuant to ss. 45.032, 732.107, 733.816,
3931 and 744.534.
3932 Section 81. Section 717.1382, Florida Statutes, is amended
3933 to read:
3934 717.1382 United States savings bond; abandoned unclaimed
3935 property; escheatment; procedure.—
3936 (1) Notwithstanding any other provision of law, a United
3937 States savings bond in possession of the department or
3938 registered to a person with a last known address in the state,
3939 including a bond that is lost, stolen, or destroyed, is presumed
3940 abandoned and unclaimed 5 years after the bond reaches maturity
3941 and no longer earns interest and shall be reported and remitted
3942 to the department by the financial institution or other holder
3943 in accordance with ss. 717.117(5) and (11) ss. 717.117(1) and
3944 (5) and 717.119, if the department is not in possession of the
3945 bond.
3946 (2)(a) After a United States savings bond is abandoned and
3947 unclaimed in accordance with subsection (1), the department may
3948 commence a civil action in a court of competent jurisdiction in
3949 Leon County for a determination that the bond shall escheat to
3950 the state. Upon determination of escheatment, all property

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3951 rights to the bond or proceeds from the bond, including all
3952 rights, powers, and privileges of survivorship of an owner, co-
3953 owner, or beneficiary, shall vest solely in the state.
3954 (b) Service of process by publication may be made on a
3955 party in a civil action pursuant to this section. A notice of
3956 action shall state the name of any known owner of the bond, the
3957 nature of the action or proceeding in short and simple terms,
3958 the name of the court in which the action or proceeding is
3959 instituted, and an abbreviated title of the case.
3960 (c) The notice of action shall require a person claiming
3961 an interest in the bond to file a written defense with the clerk
3962 of the court and serve a copy of the defense by the date fixed
3963 in the notice. The date must not be less than 28 or more than 60
3964 days after the first publication of the notice.
3965 (d) The notice of action shall be published once a week
3966 for 4 consecutive weeks in a newspaper of general circulation
3967 published in Leon County. Proof of publication shall be placed
3968 in the court file.
3969 (e)1. If no person files a claim with the court for the
3970 bond and if the department has substantially complied with the
3971 provisions of this section, the court shall enter a default
3972 judgment that the bond, or proceeds from such bond, has
3973 escheated to the state.
3974 2. If a person files a claim for one or more bonds and,
3975 after notice and hearing, the court determines that the claimant

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3976 is not entitled to the bonds claimed by such claimant, the court
3977 shall enter a judgment that such bonds, or proceeds from such
3978 bonds, have escheated to the state.
3979 3. If a person files a claim for one or more bonds and,
3980 after notice and hearing, the court determines that the claimant
3981 is entitled to the bonds claimed by such claimant, the court
3982 shall enter a judgment in favor of the claimant.
3983 (3) The department may redeem a United States savings bond
3984 escheated to the state pursuant to this section or, in the event
3985 that the department is not in possession of the bond, seek to
3986 obtain the proceeds from such bond. Proceeds received by the
3987 department shall be deposited in accordance with s. 717.123.
3988 Section 82. Section 717.139, Florida Statutes, is amended
3989 to read:
3990 717.139 Uniformity of application and construction.—
3991 (1) The Legislature finds that laws governing abandoned
3992 property serve a vital public purpose by protecting the property
3993 rights of owners, facilitating the return abandoned property to
3994 its owners, preventing private escheatment, and ensuring that
3995 abandoned assets are preserved and safeguarded from waste or
3996 misuse. It is the public policy of the state to protect the
3997 interests of owners of abandoned unclaimed property. It is
3998 declared to be in the best interests of owners of unclaimed
3999 property that such owners receive the full amount of any
4000 unclaimed property without any fee.

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4001 (2) This chapter shall be applied and construed as to
4002 effectuate its general purpose of protecting the interest of
4003 missing owners of abandoned property, while providing that the
4004 benefit of all unclaimed and abandoned property shall go to all
4005 the people of the state, and to make uniform the law with
4006 respect to the subject of this chapter among states enacting it.
4007 It is the intent of the Legislature that property reported under
4008 this chapter remains the property of the owner and that the
4009 State of Florida acts solely as a custodian, not as the owner,
4010 of such property. Title to abandoned property may not transfer
4011 to the state except as expressly provided by law and only after
4012 all reasonable efforts to identify and return the property to
4013 its rightful owner have been exhausted.
4014 Section 83. Section 717.1400, Florida Statutes, is amended
4015 to read:
4016 717.1400 Registration.—
4017 (1) In order to file claims as a claimant claimant's
4018 representative, receive a distribution of fees and costs for
4019 approved claims from the department, and obtain information
4020 regarding abandoned unclaimed property dollar amounts and
4021 numbers of reported shares of stock held by the department, an
4022 individual must meet all of the following requirements:
4023 (a) Be one of the following:
4024 1. A Florida-licensed private investigator holding a Class
4025 "C" individual license under chapter 493;

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4026 2. A Florida-certified public account; or
4027 3. A Florida-licensed attorney.
4028 (b) Have obtained a certificate of registration from Must
4029 register with the department.
4030 (2) An application for registration as a claimant
4031 representative must be submitted in writing on a form prescribed
4032 by the department and must be accompanied by all of the
4033 following:
4034 (a) A legible color copy of the applicant's current driver
4035 license showing the full name and current address of such
4036 person. If a current driver license is not available, another
4037 form of photo identification must be provided which shows the
4038 full name and current address of such person.
4039 (b) If the applicant is a private investigator:
4040 1. on such form as the department prescribes by rule and
4041 must be verified by the applicant. To register with the
4042 department, a private investigator must provide:
4043 (a) A legible copy of the applicant's Class "A" business
4044 license under chapter 493 or that of the applicant's firm or
4045 employer which holds a Class "A" business license under chapter
4046 493; and.
4047 2.(b) A legible copy of the applicant's Class "C"
4048 individual license issued under chapter 493.
4049 (c) If the applicant is a certified public account, the
4050 applicant's Florida Board of Accountancy number.

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4051 (d) If the applicant is a licensed attorney, the
4052 applicant's Florida Bar number.
4053 (e)(c) The business address, and telephone number, tax
4054 identification number, and state of domicile or incorporation of
4055 the applicant's private investigative firm or employer.
4056 (f)(d) The names of agents, or employees, or independent
4057 contractors, if any, who are designated or authorized to act on
4058 behalf of the applicant private investigator, together with a
4059 legible color copy of their photo identification issued by an
4060 agency of the United States, or a state, or a political
4061 subdivision thereof.
4062 (g) A statement that the applicant has not, during the 5-
4063 year period immediately preceding the submission of the
4064 application, violated any part of the Florida Disposition of
4065 Abandoned Personal Property Act.
4066 (h) A statement that the applicant has not been convicted
4067 of, or plead guilty to, a felony or any offense involving moral
4068 turpitude; dishonesty; deceit; or breach of fiduciary duty,
4069 including theft, attempted theft, falsification, tampering with
4070 records, securing writings by deception, fraud, forgery, or
4071 perjury.
4072 (i)(e) Sufficient information to enable the department to
4073 disburse funds by electronic funds transfer.
4074 (j) The applicant's notarized signature immediately
4075 following an acknowledgment that any false or perjured statement

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4076 subjects the applicant to criminal liability under the laws of
4077 this state
4078 (f) The tax identification number of the private
4079 investigator's firm or employer which holds a Class "A" business
4080 license under chapter 493.
4081 (2) In order to file claims as a claimant's
4082 representative, receive a distribution of fees and costs from
4083 the department, and obtain unclaimed property dollar amounts and
4084 numbers of reported shares of stock held by the department, a
4085 Florida-certified public accountant must register with the
4086 department on such form as the department prescribes by rule and
4087 must be verified by the applicant. To register with the
4088 department, a Florida-certified public accountant must provide:
4089 (a) The applicant's Florida Board of Accountancy number.
4090 (b) A legible copy of the applicant's current driver
4091 license showing the full name and current address of such
4092 person. If a current driver license is not available, another
4093 form of identification showing the full name and current address
4094 of such person or persons shall be filed with the department.
4095 (c) The business address and telephone number of the
4096 applicant's public accounting firm or employer.
4097 (d) The names of agents or employees, if any, who are
4098 designated to act on behalf of the Florida-certified public
4099 accountant, together with a legible copy of their photo
4100 identification issued by an agency of the United States, or a

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4101 state, or a political subdivision thereof.
4102 (e) Sufficient information to enable the department to
4103 disburse funds by electronic funds transfer.
4104 (f) The tax identification number of the accountant's
4105 public accounting firm employer.
4106 (3) In order to file claims as a claimant's
4107 representative, receive a distribution of fees and costs from
4108 the department, and obtain unclaimed property dollar amounts and
4109 numbers of reported shares of stock held by the department, an
4110 attorney licensed to practice in this state must register with
4111 the department on such form as the department prescribes by rule
4112 and must be verified by the applicant. To register with the
4113 department, such attorney must provide:
4114 (a) The applicant's Florida Bar number.
4115 (b) A legible copy of the applicant's current driver
4116 license showing the full name and current address of such
4117 person. If a current driver license is not available, another
4118 form of identification showing the full name and current address
4119 of such person or persons shall be filed with the department.
4120 (c) The business address and telephone number of the
4121 applicant's firm or employer.
4122 (d) The names of agents or employees, if any, who are
4123 designated to act on behalf of the attorney, together with a
4124 legible copy of their photo identification issued by an agency
4125 of the United States, or a state, or a political subdivision

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4126 thereof.
4127 (e) Sufficient information to enable the department to
4128 disburse funds by electronic funds transfer.
4129 (f) The tax identification number of the attorney's firm
4130 or employer.
4131 (4) Information and documents already on file with the
4132 department before the effective date of this provision need not
4133 be resubmitted in order to complete the registration.
4134 (4)(5) If a material change in the status of a
4135 registration occurs, the claimant representative a registrant
4136 must, within 30 days, provide the department with the updated
4137 documentation and information in writing. Material changes
4138 include, but are not limited to, the following,: a designated
4139 agent or employee ceasing to act on behalf of the designating
4140 person, a surrender, suspension, or revocation of a license, or
4141 a license renewal.
4142 (a) If a designated agent or employee ceases to act on
4143 behalf of the person who has designated the agent or employee to
4144 act on such person's behalf, the designating person must, within
4145 30 days, inform the department the Division of Unclaimed
4146 Property in writing of the termination of agency or employment.
4147 (b) If a registrant surrenders the registrant's license or
4148 the license is suspended or revoked, the registrant must, within
4149 30 days, inform the division in writing of the surrender,
4150 suspension, or revocation.

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4151 (c) If a private investigator's Class "C" individual
4152 license under chapter 493 or a private investigator's employer's
4153 Class "A" business license under chapter 493 is renewed, the
4154 private investigator must provide a copy of the renewed license
4155 to the department within 30 days after the receipt of the
4156 renewed license by the private investigator or the private
4157 investigator's employer.
4158 (5)(6) An applicant's claimant representative's A
4159 registrant's firm or employer may not have a name that might
4160 lead another person to conclude that the claimant
4161 representative's registrant's firm or employer is affiliated or
4162 associated with the United States, or an agency thereof, or a
4163 state or an agency or political subdivision of a state. The
4164 department shall deny an application for registration or revoke
4165 a registration if the applicant's or claimant representative's
4166 registrant's firm or employer has a name that might lead another
4167 person to conclude that the firm or employer is affiliated or
4168 associated with the United States, or an agency thereof, or a
4169 state or an agency or political subdivision of a state. Names
4170 that might lead another person to conclude that the firm or
4171 employer is affiliated or associated with the United States, or
4172 an agency thereof, or a state or an agency or political
4173 subdivision of a state, include, but are not limited to, the
4174 words United States, Florida, state, bureau, division,
4175 department, or government.

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4176 (6)(7) The licensing and other requirements of this
4177 section must be maintained as a condition of registration with
4178 the department.
4179 (7) To maintain active registration under this section, a
4180 claimant representative must file and obtain payment on at least
4181 10 claims per calendar year following the date of initial
4182 registration.
4183 (a) If a claimant representative fails to meet this
4184 requirement, the department must notify the claimant
4185 representative in writing and provide 30 days to demonstrate
4186 compliance or good cause for noncompliance.
4187 (b) If the claimant representative does not cure the
4188 deficiency or demonstrate good cause within the time provided,
4189 the department must revoke the registration.
4190 (c) A claimant representative whose registration is
4191 revoked under this subsection may not reapply for registration
4192 under this section for a period of 1 year following the
4193 effective date of the revocation.
4194 Section 84. Subsection (1) of section 1001.281, Florida
4195 Statutes, is amended to read:
4196 1001.281 Operating Trust Fund.—
4197 (1) The Operating Trust Fund, FLAIR number 48-2-510, is
4198 created within the Department of Education.
4199 Section 85. Subsection (1) of section 1001.282, Florida
4200 Statutes, is amended to read:

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4201 1001.282 Administrative Trust Fund.—
4202 (1) The Administrative Trust Fund, FLAIR number 48-2-021,
4203 is created within the Department of Education.
4204 Section 86. Paragraph (a) of subsection (2) of section
4205 197.582, Florida Statutes, is amended to read:
4206 197.582 Disbursement of proceeds of sale.—
4207 (2)(a) If the property is purchased for an amount in
4208 excess of the statutory bid of the certificateholder, the
4209 surplus must be paid over and disbursed by the clerk as set
4210 forth in subsections (3), (5), and (6). If the opening bid
4211 included the homestead assessment pursuant to s. 197.502(6)(c),
4212 that amount must be treated as surplus and distributed in the
4213 same manner. The clerk shall distribute the surplus to the
4214 governmental units for the payment of any lien of record held by
4215 a governmental unit against the property, including any tax
4216 certificates not incorporated in the tax deed application and
4217 omitted taxes, if any. If there remains a balance of
4218 undistributed funds, the balance must be retained by the clerk
4219 for the benefit of persons described in s. 197.522(1)(a), except
4220 those persons described in s. 197.502(4)(h), as their interests
4221 may appear. The clerk shall mail notices to such persons
4222 notifying them of the funds held for their benefit at the
4223 addresses provided in s. 197.502(4). Such notice constitutes
4224 compliance with the requirements of s. 717.117 s. 717.117(6).
4225 Any service charges and costs of mailing notices shall be paid

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4226 out of the excess balance held by the clerk. Notice must be
4227 provided in substantially the following form:
4228
4229 NOTICE OF SURPLUS FUNDS
4230 FROM TAX DEED SALE
4231
4232 CLERK OF COURT
4233 .... COUNTY, FLORIDA
4234
4235 Tax Deed #........
4236 Certificate #........
4237 Property Description: ........
4238 Pursuant to chapter 197, Florida Statutes, the above
4239 property was sold at public sale on ...(date of sale)..., and a
4240 surplus of $...(amount)... (subject to change) will be held by
4241 this office for 120 days beginning on the date of this notice to
4242 benefit the persons having an interest in this property as
4243 described in section 197.502(4), Florida Statutes, as their
4244 interests may appear (except for those persons described in
4245 section 197.502(4)(h), Florida Statutes).
4246 To the extent possible, these funds will be used to satisfy
4247 in full each claimant with a senior mortgage or lien in the
4248 property before distribution of any funds to any junior mortgage
4249 or lien claimant or to the former property owner. To be
4250 considered for funds when they are distributed, you must file a

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4251 notarized statement of claim with this office within 120 days of
4252 this notice. If you are a lienholder, your claim must include
4253 the particulars of your lien and the amounts currently due. Any
4254 lienholder claim that is not filed within the 120-day deadline
4255 is barred.
4256 A copy of this notice must be attached to your statement of
4257 claim. After the office examines the filed claim statements, it
4258 will notify you if you are entitled to any payment.
4259 Dated: ........
4260 Clerk of Court
4261 Section 87. Paragraph (t) of subsection (1) of section
4262 626.9541, Florida Statutes, is amended to read:
4263 626.9541 Unfair methods of competition and unfair or
4264 deceptive acts or practices defined.—
4265 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
4266 ACTS.—The following are defined as unfair methods of competition
4267 and unfair or deceptive acts or practices:
4268 (t) Certain life insurance relations with funeral
4269 directors prohibited.—
4270 1. No life insurer shall permit any funeral director or
4271 direct disposer to act as its representative, adjuster, claim
4272 agent, special claim agent, or agent for such insurer in
4273 soliciting, negotiating, or effecting contracts of life
4274 insurance on any plan or of any nature issued by such insurer or
4275 in collecting premiums for holders of any such contracts except

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4276 as prescribed in s. 626.785(2) s. 626.785(3).
4277 2. No life insurer shall:
4278 a. Affix, or permit to be affixed, advertising matter of
4279 any kind or character of any licensed funeral director or direct
4280 disposer to such policies of insurance.
4281 b. Circulate, or permit to be circulated, any such
4282 advertising matter with such insurance policies.
4283 c. Attempt in any manner or form to influence
4284 policyholders of the insurer to employ the services of any
4285 particular licensed funeral director or direct disposer.
4286 3. No such insurer shall maintain, or permit its agent to
4287 maintain, an office or place of business in the office,
4288 establishment, or place of business of any funeral director or
4289 direct disposer in this state.
4290 Section 88. For the purpose of incorporating the amendment
4291 made by this act to section 717.101, Florida Statutes, in a
4292 reference thereto, paragraph (a) of subsection (6) of section
4293 772.13, Florida Statutes, is reenacted to read:
4294 772.13 Civil remedy for terrorism or facilitating or
4295 furthering terrorism.—
4296 (6)(a) In any postjudgment execution proceedings to
4297 enforce a judgment entered against a terrorist party under this
4298 section or under 18 U.S.C. s. 2333 or a substantially similar
4299 law of the United States or of any state or territory of the
4300 United States, including postjudgment execution proceedings

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/CS/HB 1221 2026

4301 against any agency or instrumentality of the terrorist party not
4302 named in the judgment pursuant to s. 201(a) of the Terrorism
4303 Risk Insurance Act, 28 U.S.C. s. 1610:
4304 1. There is no right to a jury trial under s. 56.18 or s.
4305 77.08;
4306 2. A defendant or a person may not use the resources of
4307 the courts of this state in furtherance of a defense or an
4308 objection to postjudgment collection proceedings if the
4309 defendant or person purposely leaves the jurisdiction of this
4310 state or the United States, declines to enter or reenter this
4311 state or the United States to submit to its jurisdiction, or
4312 otherwise evades the jurisdiction of the court in which a
4313 criminal case is pending against the defendant or person. This
4314 subparagraph applies to any entity that is owned or controlled
4315 by a person to whom this paragraph applies;
4316 3. Creditor process issued under chapter 56 or chapter 77
4317 may be served upon any person or entity over whom the court has
4318 personal jurisdiction. Writs of garnishment issued under s.
4319 77.01 and proceedings supplementary under s. 56.29 apply to
4320 intangible assets wherever located, without territorial
4321 limitation, including bank accounts as defined in s.
4322 674.104(1)(a), financial assets as defined in s. 678.1021(1), or
4323 other intangible property as defined in s. 717.101. The situs of
4324 any intangible assets held or maintained by or in the
4325 possession, custody, or control of a person or entity so served

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CS/CS/HB 1221 2026

4326 shall be deemed to be in this state for the purposes of a
4327 proceeding under chapter 56 or chapter 77. Service of a writ or
4328 notice to appear under this section shall provide the court with
4329 in rem jurisdiction over any intangible assets regardless of the
4330 location of the assets;
4331 4. Notwithstanding s. 678.1121, the interest of a debtor
4332 in a financial asset or security entitlement may be reached by a
4333 creditor by legal process upon the securities intermediary with
4334 whom the debtor's securities account is maintained, or, if that
4335 is a foreign entity, legal process under chapter 56 or chapter
4336 77 may be served upon the United States securities custodian or
4337 intermediary that has reported holding, maintaining, possessing,
4338 or controlling the blocked financial assets or security
4339 entitlements to the Office of Foreign Assets Control of the
4340 United States Department of the Treasury, and such financial
4341 assets or security entitlements shall be subject to execution,
4342 garnishment, and turnover by the United States securities
4343 custodian or intermediary; and
4344 5. Notwithstanding s. 670.502(4), when an electronic funds
4345 transfer is not completed within 5 banking days and is canceled
4346 pursuant to s. 670.211(4) because a United States intermediary
4347 financial institution has blocked the transaction in compliance
4348 with a United States sanctions program, and a terrorist party or
4349 any agency or instrumentality thereof was either the originator
4350 or the intended beneficiary, then the blocked funds shall be

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4351 deemed owned by the terrorist party or its agency or
4352 instrumentality and shall be subject to execution and
4353 garnishment.
4354 Section 89. This act shall take effect upon becoming a
4355 law.

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COMMERCE COMMITTEE

CS/CS/HB 1221 by Rep. LaMarca
Department of Financial Services

AMENDMENT SUMMARY
February 26, 2026

Amendment #925823 by Rep. LaMarca (strike-all):
• Removes the language authorizing DFS to purchase multiyear software licenses and
purchase insurance without going through DMS.
• Clarifies that title insurers, designated officers of title insurers, and attorneys are exempt
from licensing requirements for title insurance agents.
• Removes the requirements for insurers to provide DFS a list of persons who are exempt
from having to obtain licensure as a title insurance agent.
• Makes permanent the requirement that only low-income and moderate-income persons
with homes less than $700,000 qualify for the My Safe Florida Home Program.
• Extends the time period for securities to be considered unclaimed/abandoned property
from 3 years to 10 years.
• Requires additional due diligence steps for equity/securities holders prior to the property
being presumed abandoned.
• Provides that if unclaimed/abandoned property is digital currency, it must be liquidated
by the holder before it is remitted to DFS.
• Expands qualifying documentation of evidence of death if a will or trust instrument is
included in the contents of an abandoned safe-deposit box or repository.
• Provides conditions for claims to be considered withdrawn and specifies that withdrawn
claims are not considered when competing claims exist.
• Creates an exemption from the reporting requirements for large businesses that
purchase unclaimed/abandoned property in bankruptcy proceedings.
• Removes the provision in the My Safe Florida Condominium Pilot Program that limits the
program to associations located within 15 miles of the coast.
o Limits the program to associations with at least 80% of the occupied units are
owned or occupied by a person or family whose income is at or below 80% of the
median income.
• Provides that single- and two-family homes being used to house migrant farm workers or
support people living with a mental health disorder may not be reclassified under the
Building Code or Fire Code.
• Provides that when redeeming a deferred presentment transaction, a debit card used for
payment will be treated the same as cash.
• Provides that the federal Fair Debt Collection Practices Act only applies to money
services business licensees if the licensee is utilizing a third-party debt.
• Ratifies rules which designate qualifying gold and silver coin as legal tender.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (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: Commerce Committee
2 Representative LaMarca offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Subsection (2) of section 17.11, Florida
7 Statutes, is amended to read:
8 17.11 To report disbursements made.—
9 (2) The Chief Financial Officer shall also cause to have
10 reported from the Financial Management Florida Accounting
11 Information Resource Subsystem no less than quarterly the
12 disbursements which agencies made to small businesses, as
13 defined in the Florida Small and Minority Business Assistance
14 Act; to certified minority business enterprises in the
15 aggregate; and to certified minority business enterprises broken
16 down into categories of minority persons, as well as gender and
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Amendment No.

17 nationality subgroups. This information shall be made available
18 to the agencies, the Office of Supplier Diversity, the Governor,
19 the President of the Senate, and the Speaker of the House of
20 Representatives. Each agency shall be responsible for the
21 accuracy of information entered into the Financial Management
22 Florida Accounting Information Resource Subsystem for use in
23 this reporting.
24 Section 2. Section 17.13, Florida Statutes, is amended to
25 read:
26 17.13 To replace duplicate warrants lost or destroyed.—
27 (1) The Chief Financial Officer is required to replace
28 duplicate any Chief Financial Officer's warrants that may have
29 been lost or destroyed, or may hereafter be lost or destroyed,
30 upon the owner thereof or the owner's agent or attorney
31 presenting the Chief Financial Officer the statement, under
32 oath, reciting the number, date, and amount of any warrant or
33 the best and most definite description in his or her knowledge
34 and the circumstances of its loss; if the Chief Financial
35 Officer deems it necessary, the owner or the owner's agent or
36 attorney shall file in the office of the Chief Financial Officer
37 a surety bond, or a bond with securities, to be approved by one
38 of the judges of the circuit court or one of the justices of the
39 Supreme Court, in a penalty of not less than twice the amount of
40 any warrants so replaced duplicated, conditioned to indemnify

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Amendment No.

41 the state and any innocent holders thereof from any damages that
42 may accrue from such replacement duplication.
43 (2) The Chief Financial Officer is required to replace
44 duplicate any Chief Financial Officer's warrant that may have
45 been lost or destroyed, or may hereafter be lost or destroyed,
46 when sent to any payee via any state agency when such warrant is
47 lost or destroyed prior to being received by the payee and
48 provided the director of the state agency to whom the warrant
49 was sent presents to the Chief Financial Officer a statement,
50 under oath, reciting the number, date, and amount of the warrant
51 lost or destroyed, the circumstances surrounding the loss or
52 destruction of such warrant, and any additional information that
53 the Chief Financial Officer shall request in regard to such
54 warrant.
55 (3) Any replacement duplicate Chief Financial Officer's
56 warrant issued in pursuance of the above provisions shall be of
57 the same validity as the original was before its loss.
58 Section 3. Subsection (1) of section 110.113, Florida
59 Statutes, is amended to read:
60 110.113 Pay periods for state officers and employees;
61 salary payments by direct deposit.—
62 (1) The normal pay period for salaries of state officers
63 and employees shall be 1 month. The Department of Financial
64 Services shall issue either monthly or biweekly salary payments
65 by state warrants or by direct deposit pursuant to s. 17.076 or
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66 make semimonthly salary payments by direct deposit pursuant to
67 s. 17.076, as requested by the head of each state agency and
68 approved by the Executive Office of the Governor and the
69 Department of Financial Services.
70 Section 4. Paragraph (c) is added to subsection (2) of
71 section 112.3135, Florida Statutes, to read:
72 112.3135 Restriction on employment of relatives.—
73 (2)
74 (c) To aid the recruitment of firefighters within this
75 state, notwithstanding paragraph (a), a public official may
76 appoint, employ, promote, or advance, or advocate for the
77 appointment, employment, promotion, or advancement of a relative
78 as a firefighter as defined in s. 633.102 if such appointment,
79 employment, promotion, or advancement is part of a competitive
80 process provided for in a collective bargaining agreement.
81 Section 5. Subsection (16) of section 215.422, Florida
82 Statutes, is amended to read:
83 215.422 Payments, warrants, and invoices; processing time
84 limits; dispute resolution; agency or judicial branch
85 compliance.—
86 (16) Nothing contained in this section shall be construed
87 to be an appropriation. Any interest which becomes due and owing
88 pursuant to this section must be paid shall only be payable from
89 the appropriation charged for such goods or services. However,
90 if insufficient funds are available within the appropriation
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Amendment No.

91 charged for such goods or services, the agency must pay the
92 interest from a similar or appropriate appropriation category.
93 Section 6. Subsections (4) through (10) of section
94 215.5586, Florida Statutes, are renumbered as subsections (5)
95 through (11), respectively, paragraphs (a) through (e) of
96 subsection (1), subsections (2) and (3), paragraph (a) of
97 present subsection (8), and present subsection (10) are amended,
98 and a new subsection (4) is added to that section, to read:
99 215.5586 My Safe Florida Home Program.—There is
100 established within the Department of Financial Services the My
101 Safe Florida Home Program. The department shall provide fiscal
102 accountability, contract management, and strategic leadership
103 for the program, consistent with this section. This section does
104 not create an entitlement for property owners or obligate the
105 state in any way to fund the inspection or retrofitting of
106 residential property in this state. Implementation of this
107 program is subject to annual legislative appropriations. It is
108 the intent of the Legislature that, subject to the availability
109 of funds, the My Safe Florida Home Program provide licensed
110 inspectors to perform hurricane mitigation inspections of
111 eligible homes and grants to fund hurricane mitigation projects
112 on those homes. The department shall implement the program in
113 such a manner that the total amount of funding requested by
114 accepted applications, whether for inspections, grants, or other
115 services or assistance, does not exceed the total amount of
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Amendment No.

116 available funds. If, after applications are processed and
117 approved, funds remain available, the department may accept
118 applications up to the available amount. The program shall
119 develop and implement a comprehensive and coordinated approach
120 for hurricane damage mitigation pursuant to the requirements
121 provided in this section.
122 (1) HURRICANE MITIGATION INSPECTIONS.—
123 (a)1. For the purposes of this paragraph, the term:
124 a. "Attached" means a dwelling unit that shares a wall
125 with another dwelling unit.
126 b. "Detached" means a dwelling that does not share a wall
127 with another dwelling unit or building and has greater than zero
128 clearance between it and any other building. This term includes
129 a garage that is located under a contiguous roof with a
130 residence.
131 c. "Single-family" means a residence designed for and
132 containing only one dwelling unit.
133 2. An applicant is To be eligible for a hurricane
134 mitigation inspection under the program if all of the following
135 conditions are met:
136 a.1. The A home for which the inspection is sought is must
137 be a single-family, unit on an individual parcel of land that
138 is:
139 (I) A detached residential property; or

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Amendment No.

140 (II) An attached residential property not exceeding three
141 stories. A townhouse as defined in s. 481.203;
142 b.2. The A home for which the inspection is sought is must
143 be site-built and owner-occupied.; and
144 c.3. The applicant is homeowner must have been granted a
145 homestead exemption on the home under chapter 196.
146 (b)1. An application for a hurricane mitigation inspection
147 must contain a signed or electronically verified statement made
148 under penalty of perjury that the applicant has submitted only
149 one inspection application on the home or that the application
150 is allowed under subparagraph 2., and the application must have
151 documents attached which demonstrate that the applicant meets
152 the requirements of paragraph (a).
153 2. An applicant may submit a subsequent hurricane
154 mitigation inspection application for the same home only if:
155 a. The original hurricane mitigation inspection
156 application has been denied or withdrawn because of material
157 errors or omissions in the application;
158 b. The original hurricane mitigation inspection
159 application was denied or withdrawn because the applicant home
160 did not meet the eligibility criteria for an inspection at the
161 time of the previous application, and the applicant homeowner
162 reasonably believes that he or she is the home now is eligible
163 for an inspection; or

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164 c. The program's eligibility requirements for an
165 inspection have changed since the original application date, and
166 the applicant reasonably believes that her or she the home is
167 eligible under the new requirements; or.
168 d. More than 24 months have passed since the applicant
169 received a hurricane mitigation inspection under this section,
170 and the applicant has not received a grant payment through the
171 program for that inspection.
172 (c) An applicant meeting the requirements of paragraph (a)
173 may receive an inspection of the a home through under the
174 program without being eligible for a grant under subsection (2)
175 or applying for such grant.
176 (d) Licensed inspectors are to provide initial home
177 inspections of eligible homes to determine what mitigation
178 measures are needed, what insurance premium discounts may be
179 available, and what improvements to existing residential
180 properties are needed to reduce the property's vulnerability to
181 hurricane damage. An inspector may inspect a townhouse as
182 defined in s. 481.203 to determine if opening protection
183 mitigation as listed in subparagraph (2)(e)1. would provide
184 improvements to mitigate hurricane damage.
185 (e) The department shall contract with wind certification
186 entities to provide hurricane mitigation inspections. The
187 initial inspections provided to applicants homeowners, at a
188 minimum, must include:
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Amendment No.

189 1. A home inspection and report that summarizes the
190 inspection results and identifies recommended improvements an
191 applicant a homeowner may make take to mitigate hurricane
192 damage.
193 2. A range of cost estimates regarding the recommended
194 mitigation improvements.
195 3. Information regarding estimated premium discounts,
196 correlated to the current mitigation features and the
197 recommended mitigation improvements identified by the
198 inspection.
199 (2) HURRICANE MITIGATION GRANTS.—Financial grants shall be
200 used by applicants homeowners to make improvements recommended
201 by an initial inspection which increase a home's resistance to
202 hurricane damage.
203 (a) An applicant A homeowner is eligible for a hurricane
204 mitigation grant if all of the following criteria are met:
205 1. The applicant home must be eligible for an inspection
206 under subsection (1).
207 2. The home must be a dwelling with an insured value of
208 $700,000 or less. Applicants Homeowners who are low-income
209 persons, as defined in s. 420.0004(11), are exempt from this
210 requirement.
211 3. The home must undergo an initial acceptable hurricane
212 mitigation inspection through the program as provided in
213 subsection (1).
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214 4. The building permit application for initial
215 construction of the home must have been built made before
216 January 1, 2008, as reflected on the county property appraiser's
217 website.
218 5. The applicant homeowner must agree to make his or her
219 home available for a final inspection once a mitigation project
220 is completed.
221 6. The applicant homeowner must agree to provide to the
222 department information received from the applicant's homeowner's
223 insurer identifying the discounts realized by the applicant
224 homeowner because of the mitigation improvements funded through
225 the program.
226 7.a. The applicant homeowner must be a low-income person
227 or moderate-income person as defined in s. 420.0004.
228 b. The hurricane mitigation inspection must have occurred
229 within the previous 24 months from the date of application.
230 c. Notwithstanding subparagraph 2., applicants homeowners
231 who are low-income persons, as defined in s. 420.0004(11), are
232 not exempt from the requirement that the home must be a dwelling
233 with an insured value of $700,000 or less.
234 d. This subparagraph expires July 1, 2026.
235 (b)1. An application for a grant must contain a signed or
236 electronically verified statement made under penalty of perjury
237 that the applicant has submitted only one grant application or
238 that the application is allowed under subparagraph 2., and the
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Amendment No.

239 application must have documents attached demonstrating that the
240 applicant meets the requirements of paragraph (a).
241 2. An applicant may submit a subsequent grant application
242 if:
243 a. The original grant application was denied or withdrawn
244 because the application contained errors or omissions;
245 b. The original grant application was denied or withdrawn
246 because the applicant home did not meet the eligibility criteria
247 for a grant at the time of the previous application, and the
248 applicant homeowner reasonably believes that he or she is the
249 home now is eligible for a grant; or
250 c. The program's eligibility requirements for a grant have
251 changed since the original application date, and the applicant
252 reasonably believes that he or she is an eligible homeowner
253 under the new requirements.
254 3. A grant application must include a statement from the
255 applicant homeowner which contains the name and state license
256 number of the contractor that the applicant homeowner
257 acknowledges as the intended contractor for the mitigation work.
258 The program must electronically verify that the contractor's
259 state license number is valid accurate and up to date before
260 grant approval.
261 (c) All grants must be matched on the basis of $1 provided
262 by the applicant for $2 provided by the state up to a maximum

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Amendment No.

263 state contribution of $10,000 toward the actual cost of the
264 mitigation project, except as provided in paragraph (h).
265 (d) All hurricane mitigation performed under the program
266 must be based upon the securing of all required local permits
267 and inspections and must be performed by properly licensed
268 contractors.
269 (e) When recommended by an initial a hurricane mitigation
270 inspection, grants for eligible applicants homes may be used for
271 all of the following improvements:
272 1. Opening protection improvements, including:
273 a. Exterior doors.,
274 b. Garage doors.,
275 c. Windows., and
276 d. Skylights.
277 2. Roof improvements, including:
278 a. Reinforcing roof-to-wall connections.
279 b.3. Improving the strength of roof-deck attachments.
280 c.4. Installing secondary water resistance for roof and
281 replacing the roof covering.
282 (f) Improvements must be identified by the final hurricane
283 mitigation inspection to receive grant funds When recommended by
284 a hurricane mitigation inspection, grants for townhouses, as
285 defined in s. 481.203, may only be used for opening protection.
286 (g) The department may require that improvements be made
287 to all openings, including exterior doors, garage doors,
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Amendment No.

288 windows, and skylights, as a condition of reimbursing an
289 applicant a homeowner approved for a grant. The department may
290 adopt, by rule, the maximum grant allowances for any improvement
291 allowable under paragraph (e) or paragraph (f).
292 (h) Low-income applicants homeowners, as defined in s.
293 420.0004(11), who otherwise meet the applicable requirements of
294 this subsection are eligible for a grant of up to $10,000 and
295 are not required to provide a matching amount to receive the
296 grant.
297 (i)1. The department shall develop a process that ensures
298 the most efficient means to collect and verify inspection
299 applications and grant applications to determine eligibility.
300 The department may direct hurricane mitigation inspectors to
301 collect and verify grant application information or use the
302 Internet or other electronic means to collect information and
303 determine eligibility.
304 2. The department shall prioritize the review and approval
305 of such inspection applications and grant applications in the
306 following order:
307 a. First, applications from low-income persons, as defined
308 in s. 420.0004, who are at least 60 years old;
309 b. Second, applications from all other low-income persons,
310 as defined in s. 420.0004;
311 c. Third, applications from moderate-income persons, as
312 defined in s. 420.0004, who are at least 60 years old;
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Amendment No.

313 d. Fourth, applications from all other moderate-income
314 persons, as defined in s. 420.0004; and
315 e. Last, all other applications.
316 3. The department shall start accepting inspection
317 applications and grant applications no earlier than the
318 effective date of a legislative appropriation funding
319 inspections and grants, as follows:
320 a. Initially, from applicants prioritized under sub-
321 subparagraph 2.a.;
322 b. From applicants prioritized under sub-subparagraph
323 2.b., beginning 15 days after the program initially starts
324 accepting applications;
325 c. From applicants prioritized under sub-subparagraph
326 2.c., beginning 30 days after the program initially starts
327 accepting applications;
328 d. From applicants described in sub-subparagraph 2.d.,
329 beginning 45 days after the program initially starts accepting
330 applications; and
331 e. From all other applicants, beginning 60 days after the
332 program initially starts accepting applications.
333 4. The program may accept a certification directly from a
334 low-income applicant homeowner or moderate-income applicant
335 homeowner who meets the requirements of s. 420.0004(11) or (12),
336 respectively, if the applicant homeowner provides such

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Amendment No.

337 certification in a signed or electronically verified statement
338 made under penalty of perjury.
339 5. The program may accept a certification directly from an
340 applicant attesting to his or her age if the applicant provides
341 such certification in a signed or electronically verified
342 statement made under penalty of perjury.
343 (j) An applicant A homeowner who receives a grant shall
344 finalize construction and request a final inspection, or request
345 an extension for an additional 6 months, within 18 months 1 year
346 after grant application approval. If an applicant a homeowner
347 fails to comply with this paragraph, his or her application is
348 deemed abandoned and the grant money reverts to the department.
349 (3) REQUESTS FOR INFORMATION.—The department may request
350 that an applicant provide additional information. An application
351 is deemed abandoned withdrawn by the applicant if the department
352 does not receive a response to its request for additional
353 information within 60 days after the notification of any
354 apparent error or omission.
355 (4) ABANDONED APPLICATIONS.—The department must notify an
356 applicant at least 5 business days before an application is
357 deemed abandoned. If the applicant responds to such notification
358 within 5 business days after receiving the notice and
359 demonstrates good cause for why the application should not be
360 deemed abandoned, the applicant may submit a subsequent grant

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Amendment No.

361 application or the department may determine the application is
362 not abandoned.
363 (9)(8) CONTRACT MANAGEMENT.—
364 (a) The department may contract with third parties for
365 grants management, inspection services, contractor services for
366 low-income applicants homeowners, information technology,
367 educational outreach, and auditing services. Such contracts are
368 considered direct costs of the program and are not subject to
369 administrative cost limits. The department shall contract with
370 providers that have a demonstrated record of successful business
371 operations in areas directly related to the services to be
372 provided and shall ensure the highest accountability for use of
373 state funds, consistent with this section.
374 (11)(10) REPORTS.—The department shall make an annual
375 report on the activities of the program that shall account for
376 the use of state funds and indicate the number of inspections
377 requested, the number of inspections performed, the number of
378 grant applications received, the number and value of grants
379 approved, and the estimated average annual amount of insurance
380 premium discounts and total estimated annual amount of insurance
381 premium discounts applicants homeowners received from insurers
382 as a result of mitigation funded through the program. The report
383 must be delivered to the President of the Senate and the Speaker
384 of the House of Representatives by February 1 of each year.
385
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386 Section 7. Subsections (1) and (2) and paragraphs (a) and
387 (j) of subsection (5) of section 215.55871, Florida Statutes,
388 are amended to read:
389 215.55871 My Safe Florida Condominium Pilot Program.—There
390 is established within the Department of Financial Services the
391 My Safe Florida Condominium Pilot Program to be implemented
392 pursuant to appropriations. The department shall provide fiscal
393 accountability, contract management, and strategic leadership
394 for the pilot program, consistent with this section. This
395 section does not create an entitlement for associations or unit
396 owners or obligate the state in any way to fund the inspection
397 or retrofitting of condominiums in the state. Implementation of
398 this pilot program is subject to annual legislative
399 appropriations. It is the intent of the Legislature that the My
400 Safe Florida Condominium Pilot Program provide licensed
401 inspectors to perform inspections for and grants to eligible
402 associations as funding allows.
403 (1) DEFINITIONS.—As used in this section, the term:
404 (a) "Area median income" means the median household
405 income, as published annually by the United States Department of
406 Housing and Urban Development, for the county in which the
407 condominium property is located.
408 (b)(a) "Association" has the same meaning as in s.
409 718.103.

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410 (c)(b) "Association property" means property, real and
411 personal, which is owned or leased by, or is dedicated by a
412 recorded plat to, an association for the use and benefit of its
413 members and is located in the service area.
414 (d)(c) "Board of administration" has the same meaning as
415 in s. 718.103.
416 (e)(d) "Condominium" has the same meaning as in s.
417 718.103. For purposes of this section, the term does not include
418 detached units on individual parcels of land.
419 (f)(e) "Condominium property" means the lands, leaseholds,
420 and personal property that are subjected to condominium
421 ownership, whether or not contiguous, and all improvements
422 thereon and all easements and rights appurtenant thereto
423 intended for use in connection with the condominium and are
424 located in the service area.
425 (g)(f) "Department" means the Department of Financial
426 Services.
427 (h)(g) "Property" means association property and
428 condominium property, as applicable, located in the service
429 area.
430 (h) "Service area" means the area of the state which is 15
431 miles inward of a coastline, as that term is defined in s.
432 376.031.
433 (i) "Unit" has the same meaning as in s. 718.103.
434 (j) "Unit owner" has the same meaning as in s. 718.103.
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435 (2) PARTICIPATION.—
436 (a) Participation in the pilot program is limited to:
437 1. Condominium associations in which at least 80 percent
438 of the occupied units within the condominium are owned or
439 occupied by a person or family whose annual income is at or
440 below 80 percent of the area median income, adjusted for
441 household size, applicable to the county in which the
442 condominium is located. Eligibility must be determined using the
443 area median income published at the time an application is
444 submitted. For purposes of determining if a condominium
445 association meets the 80 percent unit-occupied threshold:
446 a. Only occupied residential units may be counted.
447 b. Both owner-occupied and tenant-occupied residential
448 units may be counted as long as the persons or families living
449 in such residential units provide income documentation to the
450 department and the department has verified that such person or
451 family meets the income requirements of this subparagraph.
452 2. Structures or buildings on the condominium property
453 which are three or more stories in height, provided that each
454 structure or building that is the subject of a mitigation grant
455 contains at least two single-family dwellings.
456 (b) The department shall adopt rules establishing
457 acceptable methods for verifying household income, including,
458 but not limited to, owner self-certification, tax returns,
459 income statements, or other documentation deemed sufficient by
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460 the department. The department may require periodic
461 recertification of income eligibility to ensure compliance with
462 this section.
463 (c) A condominium with mixed-income occupancies is
464 eligible to participate in the pilot program under this section
465 if the income threshold in subparagraph (a)1. is met.
466 (d)(b) In order to apply for an inspection under
467 subsection (4) or a grant under subsection (5) for association
468 property or condominium property, an association must receive
469 approval by a majority vote of the board of administration or a
470 majority vote of the total voting interests of the association
471 to participate in the pilot program. An association may not
472 apply for an inspection under subsection (4) or a grant under
473 subsection (5) for association property or condominium property
474 unless the association has complied with the inspection
475 requirements in ss. 553.899 and 718.112(2)(g) and (h). An
476 association may not apply for a grant under subparagraph
477 (5)(e)1. for association property or condominium property unless
478 the windows of the association property or condominium property
479 are established as common elements in the declaration.
480 (e)(c) In order to apply for a grant under subsection (5)
481 which improves one or more units within a condominium, an
482 association must receive both of the following:

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483 1. Approval by a majority vote of the board of
484 administration or a majority vote of the total voting interests
485 of the association to participate in a mitigation inspection.
486 2. Approval by at least 75 percent of all unit owners who
487 reside within the structure or building that is the subject of
488 the mitigation grant.
489 (f)(d) A unit owner may participate in the pilot program
490 through a mitigation grant awarded to the association but may
491 not participate individually in the pilot program.
492 (g)(e) The votes required under this subsection may take
493 place at the annual budget meeting of the association or at a
494 unit owner meeting called for the purpose of taking such vote.
495 Before a vote of the unit owners may be taken, the association
496 must provide to the unit owners a clear disclosure of the pilot
497 program on a form created by the department. The president and
498 the treasurer of the board of administration must sign the
499 disclosure form indicating that a copy of the form was provided
500 to each unit owner of the association. The signed disclosure
501 form and the minutes from the meeting at which the unit owners
502 voted to participate in the pilot program must be maintained as
503 part of the official records of the association. Within 14 days
504 after an affirmative vote to participate in the pilot program,
505 the association must provide written notice in the same manner
506 as required under s. 718.112(2)(d) to all unit owners of the
507 decision to participate in the pilot program.
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508 (5) MITIGATION GRANTS.—Financial grants may be used by
509 associations to make improvements recommended in a hurricane
510 mitigation inspection report which increase the condominium's
511 resistance to hurricane damage.
512 (a) An application for a mitigation grant must:
513 1. Contain a signed or electronically verified statement
514 made under penalty of perjury by the president of the board of
515 administration that the association has submitted only a single
516 application for each property that the association operates or
517 maintains.
518 2. Include a notarized statement from the president of the
519 board of administration containing the name and license number
520 of each contractor the association intends to use for the
521 mitigation project.
522 3. Include a notarized statement from the president of the
523 board of administration which commits to the department that the
524 association will complete the mitigation improvements. If the
525 grant will be used to improve units, the application must also
526 include an acknowledged statement from each unit owner who is
527 required to provide approval for a grant under paragraph (2)(d)
528 (2)(c).
529 4. Include documentation deemed sufficient by the
530 department under paragraph (2)(b) for verifying household
531 income.
532 (j) Grant funds may only be awarded for a mitigation
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533 improvement that addresses the common elements of the
534 condominium property that will result in a mitigation credit,
535 discount, or other rate differential for the building or
536 structure to which the improvement is made. As a condition of
537 receiving awarding a grant, the association department must
538 complete 100 percent of the opening protection improvements to
539 the common elements which were recommended in the final
540 hurricane mitigation inspection report require mitigation
541 improvements to be made to all openings, including exterior
542 doors, garage doors, windows, and skylights that are a part of
543 the common elements, if doing so is necessary for the building
544 or structure to qualify for a mitigation credit, discount, or
545 other rate differential.
546 Section 8. Subsection (3) of section 215.89, Florida
547 Statutes, is amended to read:
548 215.89 Charts of account.—
549 (3) REPORTING STRUCTURE.—
550 (a) The Chief Financial Officer shall accept comments from
551 state agencies, local governments, educational entities,
552 entities of higher education, and other interested parties
553 regarding the proposed charts of account until November 1, 2013.
554 (b) By January 15, 2014, the Chief Financial Officer,
555 after consultation with affected state agencies, local
556 governments, educational entities, entities of higher education,
557 and the Auditor General, shall submit to the Governor, the
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558 President of the Senate, and the Speaker of the House of
559 Representatives a report recommending a uniform charts of
560 account which requires specific enterprise-wide information
561 related to revenues and expenditures of state agencies, local
562 governments, educational entities, and entities of higher
563 education. The report must include the estimated cost of
564 adopting and implementing a uniform enterprise-wide charts of
565 account.
566 Section 9. Subsections (1) and (5) of section 215.93,
567 Florida Statutes, are amended to read:
568 215.93 Florida Financial Management Information System.—
569 (1) To provide the information necessary to carry out the
570 intent of the Legislature, there shall be a Florida Financial
571 Management Information System. The Florida Financial Management
572 Information System shall be fully implemented and shall be
573 upgraded as necessary to ensure the efficient operation of an
574 integrated financial management information system and to
575 provide necessary information for the effective operation of
576 state government. Upon the recommendation of the coordinating
577 council and approval of the board, the Florida Financial
578 Management Information System may require data from any state
579 agency information system or information subsystem or may
580 request data from any judicial branch information system or
581 information subsystem that the coordinating council and board
582 have determined to have statewide financial management
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583 significance. Each functional owner information subsystem within
584 the Florida Financial Management Information System shall be
585 developed in such a fashion as to allow for timely, positive,
586 preplanned, and prescribed data transfers between the Florida
587 Financial Management Information System functional owner
588 information subsystems and from other information systems. The
589 principal unit of the system shall be the functional owner
590 information subsystem, and the system shall include, but shall
591 not be limited to, the following:
592 (a) Planning and Budgeting Subsystem.
593 (b) Florida Accounting Information Resource Subsystem.
594 (b)(c) Financial Management Subsystem.
595 (c)(d) Purchasing Subsystem.
596 (d)(e) Personnel Information System.
597 (5) Functional owners are legally responsible for the
598 security and integrity of all data records existing within or
599 transferred from their information subsystems. Each agency and
600 the judicial branch shall be responsible for the accuracy of the
601 information entered into the Florida Financial Management
602 Information System. A request for a copy of a document or an
603 accounting record, whether by public records request or
604 subpoena, must be made to the state entity for which the
605 document or accounting record is recorded. The request may not
606 be made to the functional owner of the subsystem unless the
607 document or accounting record was recorded for such entity.
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608 Section 10. Subsections (4) through (7) of section 215.94,
609 Florida Statutes, are renumbered as subsections (3) through (6),
610 respectively, and subsection (2) and present subsection (3) of
611 that section are amended to read:
612 215.94 Designation, duties, and responsibilities of
613 functional owners.—
614 (2) The Department of Financial Services shall be the
615 functional owner of the Financial Management Florida Accounting
616 Information Resource Subsystem established pursuant to ss.
617 17.03, 215.86, 216.141, and 216.151 and further developed in
618 accordance with the provisions of ss. 215.90-215.96. The
619 subsystem shall include, but shall not be limited to, the
620 following functions:
621 (a) Accounting and reporting so as to provide timely data
622 for producing financial statements for the state in accordance
623 with generally accepted accounting principles.
624 (b) Auditing and settling claims against the state.
625 (3) The Chief Financial Officer shall be the functional
626 owner of the Financial Management Subsystem. The Chief Financial
627 Officer shall design, implement, and operate the subsystem in
628 accordance with the provisions of ss. 215.90-215.96. The
629 subsystem shall include, but shall not be limited to, functions
630 for:
631 (c)(a) Recording and reconciling credits and debits to
632 treasury fund accounts.
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633 (d)(b) Monitoring cash levels and activities in state bank
634 accounts.
635 (e)(c) Monitoring short-term investments of idle cash.
636 (f)(d) Administering the provisions of the Federal Cash
637 Management Improvement Act of 1990.
638 Section 11. Subsections (2) and (3) of section 215.96,
639 Florida Statutes, are amended to read:
640 215.96 Coordinating council and design and coordination
641 staff.—
642 (2) The coordinating council shall consist of the Chief
643 Financial Officer; the Commissioner of Agriculture; the Attorney
644 General; the Secretary of Management Services; the state chief
645 information officer; the executive director of the Department of
646 Revenue; and the Director of Planning and Budgeting, Executive
647 Office of the Governor, or their designees. The Chief Financial
648 Officer, or his or her designee, shall be chair of the council,
649 and the design and coordination staff shall provide
650 administrative and clerical support to the council and the
651 board. The design and coordination staff shall maintain the
652 Minutes of each meeting shall be and make such minutes available
653 to any interested person. The Auditor General, the State Courts
654 Administrator, a an executive officer of the Florida Association
655 of state agency administrative services director selected by the
656 council Directors, and a an executive officer of the Florida
657 Association of state budget officer selected by the council
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658 Officers, or their designees, shall serve without voting rights
659 as ex officio members of the council. The chair may call
660 meetings of the council as often as necessary to transact
661 business; however, the council shall meet at least once a year.
662 Action of the council shall be by motion, duly made, seconded
663 and passed by a majority of the council voting in the
664 affirmative for approval of items that are to be recommended for
665 approval to the Financial Management Information Board.
666 (3) The coordinating council, assisted by the design and
667 coordination staff, shall have the following duties, powers, and
668 responsibilities pertaining to the Florida Financial Management
669 Information System:
670 (a) To review and coordinate annual workplans to ensure
671 that the Florida Financial Management Information System remains
672 aligned across participating entities. The coordination council
673 shall ensure that each participating entity submits an annual
674 workplan by October 1 of each year. The coordinating council
675 shall review and discuss the workplans, identify potential
676 impacts or conflicts, facilitate resolutions when practicable,
677 and expedite unresolved issues as appropriate.
678 (b) To conduct such studies and to establish committees,
679 workgroups, and teams to develop recommendations for rules,
680 policies, procedures, principles, and standards to the board as
681 necessary to assist the board in its efforts to design,
682 implement, and perpetuate a financial management information
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Amendment No.

683 system, including, but not limited to, the establishment of
684 common data codes, and the development of integrated financial
685 management policies that address the information and management
686 needs of the functional owner subsystems. The coordinating
687 council shall make available a copy of the approved plan in
688 writing or through electronic means to each of the coordinating
689 council members, the fiscal committees of the Legislature, and
690 any interested person.
691 (c)(b) To recommend to the board solutions, policy
692 alternatives, and legislative budget request issues that will
693 provide ensure a framework for the timely, positive, preplanned,
694 and prescribed data transfer between information subsystems and
695 to recommend to the board solutions, policy alternatives, and
696 legislative budget request issues that ensure the availability
697 of data and information that support state planning, policy
698 development, management, evaluation, and performance monitoring.
699 (c) To report to the board all actions taken by the
700 coordinating council for final action.
701 (d) To review the annual work plans of the functional
702 owner information subsystems by October 1 of each year. The
703 review shall be conducted to assess the status of the Florida
704 Financial Management Information System and the functional owner
705 subsystems in regard to the provisions of s. 215.91. The
706 coordinating council, as part of the review process, may make

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707 recommendations for modifications to the functional owner
708 information subsystems annual work plans.
709 Section 12. Paragraph (a) of subsection (4) of section
710 215.985, Florida Statutes, is amended to read:
711 215.985 Transparency in government spending.—
712 (4) The Executive Office of the Governor, in consultation
713 with the appropriations committees of the Senate and the House
714 of Representatives, shall establish and maintain a website that
715 provides information relating to the approved operating budget
716 for each branch of state government and state agency.
717 (a) At a minimum, the information must include:
718 1. Disbursement data for each appropriation by the account
719 value object code associated with each expenditure established
720 within the Financial Management Florida Accounting Information
721 Resource Subsystem. Expenditure data must include the name of
722 the payee, the date of the expenditure, the amount of the
723 expenditure, and the voucher statewide document number. Such
724 data must be searchable by the name of the payee, the paying
725 agency, and fiscal year, and must be downloadable in a format
726 that allows offline analysis.
727 2. For each appropriation, any adjustments, including
728 vetoes, approved supplemental appropriations included in
729 legislation other than the General Appropriations Act, budget
730 amendments, other actions approved pursuant to chapter 216, and
731 other adjustments authorized by law.
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732 3. Status of spending authority for each appropriation in
733 the approved operating budget, including released, unreleased,
734 reserved, and disbursed balances.
735 4. Position and rate information for positions provided in
736 the General Appropriations Act or approved through an amendment
737 to the approved operating budget and position information for
738 positions established in the legislative branch.
739 5. Allotments for planned expenditures of state
740 appropriations established by state agencies in the Financial
741 Management Florida Accounting Information Resource Subsystem,
742 and the current balances of such allotments.
743 6. Trust fund balance reports, including cash available,
744 investments, and receipts.
745 7. General revenue fund balance reports, including revenue
746 received and amounts disbursed.
747 8. Fixed capital outlay project data, including original
748 appropriation and disbursements throughout the life of the
749 project.
750 9. A 10-year history of appropriations indicated by
751 agency.
752 10. Links to state audits or reports related to the
753 expenditure and dispersal of state funds.
754 11. Links to program or activity descriptions for which
755 funds may be expended.

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756 Section 13. Subsections (1) and (2) and paragraph (f) of
757 subsection (3) of section 216.102, Florida Statutes, are amended
758 to read:
759 216.102 Filing of financial information; handling by Chief
760 Financial Officer; penalty for noncompliance.—
761 (1) By September 30 of each year, each agency supported by
762 any form of taxation, licenses, fees, imposts, or exactions, the
763 judicial branch, and, for financial reporting purposes, each
764 component unit of the state as determined by the Chief Financial
765 Officer shall prepare, using generally accepted accounting
766 principles, and file with the Chief Financial Officer the
767 financial and other information necessary for the preparation of
768 annual financial statements for the State of Florida as of June
769 30. In addition, each such agency and the judicial branch shall
770 prepare financial statements showing the financial position and
771 results of agency or branch operations as of June 30 for
772 internal management purposes.
773 (a) Each state agency and the judicial branch shall record
774 the receipt and disbursement of funds from federal sources in a
775 form and format prescribed by the Chief Financial Officer. The
776 access to federal funds by the administering agencies or the
777 judicial branch may not be authorized until:
778 1. The deposit has been recorded in the Financial
779 Management Florida Accounting Information Resource Subsystem

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780 using proper, consistent codes that designate deposits as
781 federal funds.
782 2. The deposit and appropriate recording required by this
783 paragraph have been verified by the office of the Chief
784 Financial Officer.
785 (b) The Chief Financial Officer shall publish a statewide
786 policy detailing the requirements for recording receipt and
787 disbursement of federal funds into the Financial Management
788 Florida Accounting Information Resource Subsystem and provide
789 technical assistance to the agencies and the judicial branch to
790 implement the policy.
791 (2) Financial information must be contained within the
792 Financial Management Florida Accounting Information Resource
793 Subsystem. Other information must be submitted in the form and
794 format prescribed by the Chief Financial Officer.
795 (a) Each component unit shall file financial information
796 and other information necessary for the preparation of annual
797 financial statements with the agency or branch designated by the
798 Chief Financial Officer by the date specified by the Chief
799 Financial Officer.
800 (b) The state agency or branch designated by the Chief
801 Financial Officer to receive financial information and other
802 information from component units shall include the financial
803 information in the Financial Management Florida Accounting
804 Information Resource Subsystem and shall include the component
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805 units' other information in its submission to the Chief
806 Financial Officer.
807 (3) The Chief Financial Officer shall:
808 (f) Consult with and elicit comments from the Executive
809 Office of the Governor on changes to the Financial Management
810 Florida Accounting Information Resource Subsystem which clearly
811 affect the accounting of federal funds, so as to ensure
812 consistency of information entered into the Federal Aid Tracking
813 System by state executive and judicial branch entities. While
814 efforts shall be made to ensure the compatibility of the
815 Financial Management Florida Accounting Information Resource
816 Subsystem and the Federal Aid Tracking System, any successive
817 systems serving identical or similar functions shall preserve
818 such compatibility.
819
820 The Chief Financial Officer may furnish and publish in
821 electronic form the financial statements and the annual
822 comprehensive financial report required under paragraphs (a),
823 (b), and (c).
824 Section 14. Subsection (3) of section 216.141, Florida
825 Statutes, is amended to read:
826 216.141 Budget system procedures; planning and programming
827 by state agencies.—
828 (3) The Chief Financial Officer, as chief fiscal officer,
829 shall use the Financial Management Florida Accounting
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830 Information Resource Subsystem developed pursuant to s.
831 215.94(2) for account purposes in the performance of and
832 accounting for all of his or her constitutional and statutory
833 duties and responsibilities. However, state agencies and the
834 judicial branch continue to be responsible for maintaining
835 accounting records necessary for effective management of their
836 programs and functions.
837 Section 15. Paragraph (a) of subsection (7) and paragraph
838 (j) of subsection (12) of section 440.13, Florida Statutes, are
839 amended to read:
840 440.13 Medical services and supplies; penalty for
841 violations; limitations.—
842 (7) UTILIZATION AND REIMBURSEMENT DISPUTES.—
843 (a) Any health care provider who elects to contest the
844 disallowance or adjustment of payment by a carrier under
845 subsection (6) must, within 60 45 days after receipt of notice
846 of disallowance or adjustment of payment, petition the
847 department to resolve the dispute. The petitioner must serve, by
848 the United States Postal Service certified mail or by common
849 carrier with verifiable tracking methods, a copy of the petition
850 on the carrier and on all affected parties listed on the notice
851 of disallowance or adjustment by certified mail. The petition
852 must be accompanied by all documents and records that support
853 the allegations contained in the petition. Failure of a

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854 petitioner to submit such documentation to the department
855 results in dismissal of the petition.
856 (12) CREATION OF THREE-MEMBER PANEL; GUIDES OF MAXIMUM
857 REIMBURSEMENT ALLOWANCES.—
858 (j) In addition to establishing the uniform schedule of
859 maximum reimbursement allowances, the panel shall:
860 1. Take testimony, receive records, and collect data to
861 evaluate the adequacy of the workers' compensation fee schedule,
862 nationally recognized fee schedules and alternative methods of
863 reimbursement to health care providers and health care
864 facilities for inpatient and outpatient treatment and care.
865 2. Survey health care providers and health care facilities
866 to determine the availability and accessibility of workers'
867 compensation health care delivery systems for injured workers.
868 3. Survey carriers to determine the estimated impact on
869 carrier costs and workers' compensation premium rates by
870 implementing changes to the carrier reimbursement schedule or
871 implementing alternative reimbursement methods.
872 4. Submit recommendations on or before January 15, 2031
873 2017, and every 5 years biennially thereafter, to the President
874 of the Senate and the Speaker of the House of Representatives on
875 methods to improve the workers' compensation health care
876 delivery system.
877

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878 The department, as requested, shall provide data to the panel,
879 including, but not limited to, utilization trends in the
880 workers' compensation health care delivery system. The
881 department shall provide the panel with an annual report
882 regarding the resolution of medical reimbursement disputes and
883 any actions pursuant to subsection (8). The department shall
884 provide administrative support and service to the panel to the
885 extent requested by the panel. The department may adopt rules
886 pursuant to ss. 120.536(1) and 120.54 to implement this
887 subsection. For prescription medication purchased under the
888 requirements of this subsection, a dispensing practitioner shall
889 not possess such medication unless payment has been made by the
890 practitioner, the practitioner's professional practice, or the
891 practitioner's practice management company or employer to the
892 supplying manufacturer, wholesaler, distributor, or drug
893 repackager within 60 days of the dispensing practitioner taking
894 possession of that medication.
895 Section 16. Section 497.1411, Florida Statutes, is created
896 to read:
897 497.1411 Disqualification of applicants and licenses;
898 penalties against licensees; rulemaking.—
899 (1) For purposes of this section, the term "applicant"
900 means an individual applying for licensure or relicensure under
901 this chapter, or an officer, director, majority owner, partner,

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902 manager, or other person who manages or controls an entity
903 applying for licensure or relicensure under this chapter.
904 (2) An applicant who has been found guilty of or has
905 pleaded guilty or nolo contendere to any of the following
906 offenses, regardless of adjudication, is permanently barred from
907 licensure under this chapter:
908 (a) A felony of the first degree.
909 (b) A felony involving conduct prohibited under chapter
910 497, chapter 787, chapter 794, chapter 796, chapter 800, chapter
911 825, chapter 827, or chapter 847.
912 (c) A felony involving moral turpitude.
913 (3) An applicant who has been found guilty of, or has
914 entered a plea of guilty or nolo contendere to an offense not
915 subject to the permanent bar under subsection (2), regardless of
916 adjudication, is subject to the following disqualifying periods:
917 (a) A 10-year disqualifying period for any felony to which
918 the permanent bar in subsection (2) does not apply.
919 Notwithstanding subsection (4), an applicant who has completed
920 at least one-half of the disqualifying period may apply for a
921 probationary license for the remainder of the disqualifying
922 period if, during that time, the applicant has not been found
923 guilty of, or has not entered a plea of guilty or nolo
924 contendere to, any offense.
925 (b) A 5-year disqualifying period for all misdemeanors
926 directly related to chapter 497.
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927 (4) The board shall adopt rules to administer this
928 section. Such rules must provide additional disqualifying
929 periods for applicants who have committed multiple criminal
930 offenses and may provide additional factors for disqualification
931 reasonably related to the applicant's criminal history. The
932 rules must also establish mitigating and aggravating factors.
933 However, mitigation may not reduce any disqualifying period to
934 less than 5 years and may not be applied to reduce the 5-year
935 disqualifying period provided in paragraph (3)(b).
936 (5) For purposes of this section, a disqualifying period
937 begins upon the applicant's final release from supervision or
938 upon completion of the applicant's criminal sentence. The board
939 may not approve issuance of a license to an applicant until the
940 applicant provides proof that all related fines, court costs,
941 fees, and court-ordered restitution have been paid.
942 (6) After the disqualifying period has expired, the burden
943 is on the applicant to demonstrate to the board that he or she
944 has been rehabilitated, does not pose a risk to the public, is
945 fit and trustworthy to engage in business regulated by this
946 chapter, and is otherwise qualified for licensure.
947 (7) Notwithstanding subsections (2) and (3), an applicant
948 who has been found guilty of, or has pleaded guilty or nolo
949 contendere to, a crime in subsection (2) or subsection (3), and
950 who has subsequently been granted a pardon or the restoration of
951 civil rights pursuant to chapter 940 and s. 8, Art. IV of the
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952 State Constitution, or a pardon or the restoration of civil
953 rights under the laws of another jurisdiction with respect to a
954 conviction in that jurisdiction, is not barred or disqualified
955 from licensure under this chapter; however, such a pardon or
956 restoration of civil rights does not require the board to award
957 such license.
958 (8)(a) The board may grant an exemption from
959 disqualification to any person disqualified from licensure under
960 subsection (3) if:
961 1. The applicant has paid in full any fee, fine, fund,
962 lien, civil judgment, restitution, or cost of prosecution
963 imposed by the court as part of the judgment and sentence for
964 any disqualifying offense; and
965 2. At least 2 years have elapsed since the applicant
966 completed or has been lawfully released from confinement,
967 supervision, or any nonmonetary condition imposed by the court
968 for a disqualifying offense.
969 (b) For the board to grant an exemption under this
970 subsection, the applicant must clearly and convincingly
971 demonstrate that he or she would not pose a risk to persons or
972 property if licensed under this chapter, evidence of which must
973 include, but need not be limited to, facts and circumstances
974 surrounding the disqualifying offense, the time that has elapsed
975 since the offense, the nature of the offense and harm caused to
976 the victim, the applicant's history before and after the
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Amendment No.

977 offense, and any other evidence or circumstances indicating that
978 the applicant will not present a danger if licensed or
979 certified.
980 (c) The board has discretion whether to grant or deny an
981 exemption under this subsection. The board's decision is subject
982 to chapter 120.
983 (9) The disqualification periods provided in this section
984 do not apply to the renewal of a license or to a new application
985 for licensure if the applicant has an active license as of July
986 1, 2026, and the applicable criminal history was considered by
987 the board on the prior approval of any active license held by
988 the applicant. This section does not affect any criminal history
989 disclosure requirements of this chapter.
990 Section 17. Subsection (9) and paragraph (c) of subsection
991 (10) of section 497.142, Florida Statutes, are amended to read:
992 497.142 Licensing; fingerprinting and criminal background
993 checks.—
994 (9) If any applicant under this chapter has been, within
995 the 10 years preceding the application under this chapter,
996 convicted or found guilty of, or entered a plea of nolo
997 contendere to, regardless of adjudication, any crime in any
998 jurisdiction, the application may shall not be deemed complete
999 until such time as the applicant provides such certified true
1000 copies of the court records evidencing the conviction, finding,

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1001 or plea, as required in this section or as the licensing
1002 authority may by rule require.
1003 (10)
1004 (c) Crimes to be disclosed are:
1005 1. Any felony or misdemeanor, no matter when committed,
1006 that was directly or indirectly related to or involving any
1007 aspect of the practice or business of funeral directing,
1008 embalming, direct disposition, cremation, funeral or cemetery
1009 preneed sales, funeral establishment operations, cemetery
1010 operations, or cemetery monument or marker sales or
1011 installation.
1012 2. Any misdemeanor, no matter when committed, that was
1013 directly related to the practice or activities regulated under
1014 this chapter Any other felony not already disclosed under
1015 subparagraph 1. that was committed within the 20 years
1016 immediately preceding the application under this chapter.
1017 3. Any other misdemeanor not already disclosed under
1018 subparagraph 2. which subparagraph 1. that was committed within
1019 the 5 years immediately preceding the application under this
1020 chapter.
1021 Section 18. Subsection (11) is added to section 553.80,
1022 Florida Statutes, to read:
1023 553.80 Enforcement.-
1024 (11) For purposes of the design, construction, erection,
1025 alteration, fire protection, fire suppression, modification,
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Amendment No.

1026 repair, and demolition of a single-family or two-family
1027 dwelling, such dwelling does not have a change of occupancy as
1028 defined in the Florida Building Code, solely due to the
1029 dwelling’s use as or conversion into a dwelling used:
1030 (a) By a tax-exempt charitable organization under s.
1031 501(c)(3) of the Internal Revenue Code whose stated corporate
1032 purpose relates to the support of people who are living with a
1033 mental health disorder and has no fewer than two and no more
1034 than four bedrooms, is occupied by a group of or family of no
1035 more than six ambulatory adults living with a mental disorder,
1036 and has no more than two adults assigned to any bedroom; or
1037 (b) For residential migrant housing, as defined in s.
1038 381.008, that has a permit from the Department of Health
1039 pursuant to s. 381.0081.
1040 Section 19. Subsection (10) of section 560.309, Florida
1041 Statutes, is amended to read:
1042 560.309 Conduct of business.—
1043 (10) If a check is returned to a licensee from a payor
1044 financial institution due to lack of funds, a closed account, or
1045 a stop-payment order, the licensee may seek collection pursuant
1046 to s. 68.065. In seeking collection, the licensee must comply
1047 with the prohibitions against harassment or abuse, false or
1048 misleading representations, and unfair practices in the Consumer
1049 Collection Practices Act under part VI of chapter 559, including
1050 s. 559.77. The licensee must also comply with the Fair Debt
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Amendment No.

1051 Collections Practices Act, 15 U.S.C. ss. 1692d, 1692e, and 1692f
1052 if the licensee uses a third-party debt collector or any name
1053 other than its own to collect such debts. A violation of this
1054 subsection is a deceptive and unfair trade practice and
1055 constitutes a violation of the Deceptive and Unfair Trade
1056 Practices Act under part II of chapter 501. In addition, a
1057 licensee must comply with the applicable provisions of the
1058 Consumer Collection Practices Act under part VI of chapter 559,
1059 including s. 559.77.
1060 Section 20. Subsection (3) of section 560.405, Florida
1061 Statutes, is amended to read:
1062 560.405 Deposit; redemption.—
1063 (3) Notwithstanding subsection (1), in lieu of
1064 presentment, a deferred presentment provider may allow the check
1065 to be redeemed at any time upon payment of the outstanding
1066 transaction balance and earned fees. Redemption in cash or
1067 through a debit card transaction shall be treated the same.
1068 However, payment may not be made in the form of a personal check
1069 or through a credit card transaction. Upon redemption, the
1070 deferred presentment provider must return the drawer's check and
1071 provide a signed, dated receipt showing that the drawer's check
1072 has been redeemed.
1073 Section 21. Subsection (2) of section 560.406, Florida
1074 Statutes, is amended to read:
1075 560.406 Worthless checks.—
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Amendment No.

1076 (2) If a check is returned to a deferred presentment
1077 provider from a payor financial institution due to insufficient
1078 funds, a closed account, or a stop-payment order, the deferred
1079 presentment provider may pursue all legally available civil
1080 remedies to collect the check, including, but not limited to,
1081 the imposition of all charges imposed on the deferred
1082 presentment provider by the financial institution. In its
1083 collection practices, a deferred presentment provider must
1084 comply with the prohibitions against harassment or abuse, false
1085 or misleading representations, and unfair practices that are
1086 contained in the Consumer Collection Practices Act under part VI
1087 of chapter 559, including s. 559.77. A deferred presentment
1088 provider must also comply with the Fair Debt Collections
1089 Practices Act, 15 U.S.C. ss. 1692d, 1692e, and 1692f if the
1090 deferred present provider uses a third-party debt collector or
1091 any name other than its own to collect such debts. A violation
1092 of this act is a deceptive and unfair trade practice and
1093 constitutes a violation of the Deceptive and Unfair Trade
1094 Practices Act under part II of chapter 501. In addition, a
1095 deferred presentment provider must comply with the applicable
1096 provisions of the Consumer Collection Practices Act under part
1097 VI of chapter 559, including s. 559.77.
1098 Section 22. Section 626.171, Florida Statutes, is amended
1099 to read:

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Amendment No.

1100 626.171 Application for license as an agent, customer
1101 representative, adjuster, or service representative, or
1102 reinsurance intermediary.—
1103 (1) The department may not issue a license as agent,
1104 customer representative, adjuster, or service representative, or
1105 reinsurance intermediary to any person except upon written
1106 application filed with the department, meeting the
1107 qualifications for the license applied for as determined by the
1108 department, and payment in advance of all applicable fees. The
1109 application must be made under the oath of the applicant and be
1110 signed by the applicant. An applicant may permit a third party
1111 to complete, submit, and sign an application on the applicant's
1112 behalf, but is responsible for ensuring that the information on
1113 the application is true and correct and is accountable for any
1114 misstatements or misrepresentations. The department shall accept
1115 the uniform application for resident and nonresident agent and
1116 adjuster licensing. The department may adopt revised versions of
1117 the uniform application by rule.
1118 (2) In the application, the applicant must include all of
1119 the following shall set forth:
1120 (a) The applicant's His or her full name, age, social
1121 security number, residence address, business address, mailing
1122 address, contact telephone numbers, including a business
1123 telephone number, and e-mail address.

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Amendment No.

1124 (b) A statement indicating the method the applicant used
1125 or is using to meet any required prelicensing education,
1126 knowledge, experience, or instructional requirements for the
1127 type of license applied for.
1128 (c) Whether the applicant he or she has been refused or
1129 has voluntarily surrendered or has had suspended or revoked a
1130 license to solicit insurance by the department or by the
1131 supervising officials of any state.
1132 (d) Whether any insurer or any managing general agent
1133 claims the applicant is indebted under any agency contract or
1134 otherwise and, if so, the name of the claimant, the nature of
1135 the claim, and the applicant's defense thereto, if any.
1136 (e) Proof that the applicant meets the requirements for
1137 the type of license for which he or she is applying.
1138 (f) The applicant's gender (male or female).
1139 (g) The applicant's native language.
1140 (h) The highest level of education achieved by the
1141 applicant.
1142 (i) The applicant's race or ethnicity (African American,
1143 white, American Indian, Asian, Hispanic, or other).
1144 (j) Such other or additional information as the department
1145 may deem proper to enable it to determine the character,
1146 experience, ability, and other qualifications of the applicant
1147 to hold himself or herself out to the public as an insurance
1148 representative.
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Amendment No.

1149
1150 However, the application must contain a statement that an
1151 applicant is not required to disclose his or her race or
1152 ethnicity, gender, or native language, that he or she will not
1153 be penalized for not doing so, and that the department will use
1154 this information exclusively for research and statistical
1155 purposes and to improve the quality and fairness of the
1156 examinations. The department may shall make provisions for
1157 applicants to voluntarily submit their cellular telephone
1158 numbers as part of the application process solely on a voluntary
1159 basis only for the purpose of two-factor authentication of
1160 secure login credentials only.
1161 (3) Each application must be accompanied by payment of any
1162 applicable fee.
1163 (4) An applicant for a license issued by the department
1164 under this chapter must submit a set of the individual
1165 applicant's fingerprints, or, if the applicant is not an
1166 individual, a set of the fingerprints of the sole proprietor,
1167 majority owner, partners, officers, and directors, to the
1168 department and must pay the fingerprint processing fee set forth
1169 in s. 624.501. Fingerprints must be processed in accordance with
1170 s. 624.34 and used to investigate the applicant's qualifications
1171 pursuant to s. 626.201. The fingerprints must be taken by a law
1172 enforcement agency or other department-approved entity. The
1173 department may not approve an application for licensure as an
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Amendment No.

1174 agent, customer service representative, adjuster, or service
1175 representative, or reinsurance intermediary if fingerprints have
1176 not been submitted.
1177 (5) The application for license filing fee prescribed in
1178 s. 624.501 is not subject to refund.
1179 (6) Members of the United States Armed Forces and their
1180 spouses, and veterans of the United States Armed Forces who have
1181 separated from service within 24 months before application for
1182 licensure, are exempt from the application filing fee prescribed
1183 in s. 624.501. Qualified individuals must provide a copy of a
1184 military identification card, military dependent identification
1185 card, military service record, military personnel file, veteran
1186 record, discharge paper or separation document that indicates
1187 such members are currently in good standing or such veterans
1188 were honorably discharged.
1189 (7) Pursuant to the federal Personal Responsibility and
1190 Work Opportunity Reconciliation Act of 1996, each party is
1191 required to provide his or her social security number in
1192 accordance with this section. Disclosure of social security
1193 numbers obtained through this requirement must be limited to the
1194 purpose of administration of the Title IV-D program for child
1195 support enforcement.
1196 Section 23. Subsection (3) of section 626.0428, Florida
1197 Statutes, is amended to read:

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Amendment No.

1198 626.0428 Agency personnel powers, duties, and
1199 limitations.—
1200 (3) An employee or an authorized representative located at
1201 a designated branch of an agent or agency may not initiate
1202 contact with any person for the purpose of soliciting insurance
1203 unless licensed and appointed as an agent or customer
1204 representative. As to title insurance, an employee of an agent
1205 or agency may not initiate contact with any individual proposed
1206 insured for the purpose of soliciting title insurance unless
1207 licensed as a title insurance agent or exempt from such
1208 licensure pursuant to s. 626.8417(4) and (5).
1209 Section 24. Paragraph (c) of subsection (2) of section
1210 626.292, Florida Statutes, is amended to read:
1211 626.292 Transfer of license from another state.—
1212 (2) To qualify for a license transfer, an individual
1213 applicant must meet the following requirements:
1214 (c) The individual must submit a completed application for
1215 this state which is received by the department within 90 days
1216 after the date the individual became a resident of this state,
1217 along with payment of the applicable fees set forth in s.
1218 624.501 and submission of the following documents:
1219 1. A certification issued by the appropriate official of
1220 the applicant's home state identifying the type of license and
1221 lines of authority under the license and stating that, at the
1222 time the license from the home state was canceled, the applicant
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Amendment No.

1223 was in good standing in that state or that the state's Producer
1224 Database records, maintained by the National Association of
1225 Insurance Commissioners, its affiliates, or subsidiaries,
1226 indicate that the agent or all-lines adjuster is or was licensed
1227 in good standing for the line of authority requested. An
1228 applicant may hold a resident license in another state for 30
1229 days after the Florida resident license has been issued to
1230 facilitate the transfer of licensure between states.
1231 2. A set of the applicant's fingerprints in accordance
1232 with s. 626.171(4).
1233 Section 25. Subsection (1) of section 626.611, Florida
1234 Statutes, is amended to read:
1235 626.611 Grounds for compulsory refusal, suspension, or
1236 revocation of agent's, title agency's, adjuster's, customer
1237 representative's, service representative's, or managing general
1238 agent's license or appointment.—
1239 (1) The department shall require license reexamination,
1240 deny an application for, suspend, revoke, or refuse to renew or
1241 continue the license or appointment of any applicant, agent,
1242 title agency, adjuster, customer representative, service
1243 representative, or managing general agent, and it shall suspend
1244 or revoke the eligibility to hold a license or appointment of
1245 any such person, if it finds that as to the applicant, licensee,
1246 or appointee any one or more of the following applicable grounds
1247 exist:
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1248 (a) Lack of one or more of the qualifications for the
1249 license or appointment as specified in this code.
1250 (b) Material misstatement, misrepresentation, or fraud in
1251 obtaining the license or appointment or in attempting to obtain
1252 the license or appointment.
1253 (c) Failure to pass to the satisfaction of the department
1254 any examination required under this code, including cheating on
1255 an examination required for licensure or violating test center
1256 or examination procedures published orally, in writing, or
1257 electronically at the test site by authorized representatives of
1258 the examination program administrator.
1259 (d) If the license or appointment is willfully used, or to
1260 be used, to circumvent any of the requirements or prohibitions
1261 of this code.
1262 (e) Willful misrepresentation of any insurance policy or
1263 annuity contract or willful deception with regard to any such
1264 policy or contract, done either in person or by any form of
1265 dissemination of information or advertising.
1266 (f) If, as an adjuster, or agent licensed and appointed to
1267 adjust claims under this code, he or she has materially
1268 misrepresented to an insured or other interested party the terms
1269 and coverage of an insurance contract with intent and for the
1270 purpose of effecting settlement of claim for loss or damage or
1271 benefit under such contract on less favorable terms than those
1272 provided in and contemplated by the contract.
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Amendment No.

1273 (g) Demonstrated lack of fitness or trustworthiness to
1274 engage in the business of insurance.
1275 (h) Demonstrated lack of reasonably adequate knowledge and
1276 technical competence to engage in the transactions authorized by
1277 the license or appointment.
1278 (i) Fraudulent or dishonest practices in the conduct of
1279 business under the license or appointment.
1280 (j) Misappropriation, conversion, or unlawful withholding
1281 of moneys belonging to insurers or insureds or beneficiaries or
1282 to others and received in conduct of business under the license
1283 or appointment.
1284 (k) Unlawfully rebating, attempting to unlawfully rebate,
1285 or unlawfully dividing or offering to divide his or her
1286 commission with another.
1287 (l) Having obtained or attempted to obtain, or having used
1288 or using, a license or appointment as agent or customer
1289 representative for the purpose of soliciting or handling
1290 "controlled business" as defined in s. 626.730 with respect to
1291 general lines agents, s. 626.784 with respect to life agents,
1292 and s. 626.830 with respect to health agents.
1293 (m) Willful failure to comply with, or willful violation
1294 of, any proper order or rule of the department or willful
1295 violation of any provision of this code.
1296 (n) Having been found guilty of or having pleaded guilty
1297 or nolo contendere to a misdemeanor directly related to the
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1298 financial services business, any felony, or any crime punishable
1299 by imprisonment of 1 year or more under the law of the United
1300 States of America or of any state thereof or under the law of
1301 any other country, without regard to whether a judgment of
1302 conviction has been entered by the court having jurisdiction of
1303 such cases.
1304 (o) Fraudulent or dishonest practice in submitting or
1305 aiding or abetting any person in the submission of an
1306 application for workers' compensation coverage under chapter 440
1307 containing false or misleading information as to employee
1308 payroll or classification for the purpose of avoiding or
1309 reducing the amount of premium due for such coverage.
1310 (p) Sale of an unregistered security that was required to
1311 be registered, pursuant to chapter 517.
1312 (q) In transactions related to viatical settlement
1313 contracts as defined in s. 626.9911:
1314 1. Commission of a fraudulent or dishonest act.
1315 2. No longer meeting the requirements for initial
1316 licensure.
1317 3. Having received a fee, commission, or other valuable
1318 consideration for his or her services with respect to viatical
1319 settlements that involved unlicensed viatical settlement
1320 providers or persons who offered or attempted to negotiate on
1321 behalf of another person a viatical settlement contract as
1322 defined in s. 626.9911 and who were not licensed life agents.
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Amendment No.

1323 4. Dealing in bad faith with viators.
1324 Section 26. Section 626.621, Florida Statutes, is amended
1325 to read:
1326 626.621 Grounds for discretionary refusal, suspension, or
1327 revocation of agent's, adjuster's, customer representative's,
1328 service representative's, or managing general agent's license or
1329 appointment.—The department may, in its discretion, require a
1330 license reexamination, deny an application for, suspend, revoke,
1331 or refuse to renew or continue the license or appointment of any
1332 applicant, agent, adjuster, customer representative, service
1333 representative, or managing general agent, and it may suspend or
1334 revoke the eligibility to hold a license or appointment of any
1335 such person, if it finds that as to the applicant, licensee, or
1336 appointee any one or more of the following applicable grounds
1337 exist under circumstances for which such denial, suspension,
1338 revocation, or refusal is not mandatory under s. 626.611:
1339 (1) Any cause for which issuance of the license or
1340 appointment could have been refused had it then existed and been
1341 known to the department.
1342 (2) Violation of any provision of this code or of any
1343 other law applicable to the business of insurance in the course
1344 of dealing under the license or appointment.
1345 (3) Violation of any lawful order or rule of the
1346 department, commission, or office.

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1347 (4) Failure or refusal, upon demand, to pay over to any
1348 insurer he or she represents or has represented any money coming
1349 into his or her hands belonging to the insurer.
1350 (5) Violation of the provision against twisting, as
1351 defined in s. 626.9541(1)(l).
1352 (6) In the conduct of business under the license or
1353 appointment, engaging in unfair methods of competition or in
1354 unfair or deceptive acts or practices, as prohibited under part
1355 IX of this chapter, or having otherwise shown himself or herself
1356 to be a source of injury or loss to the public.
1357 (7) Willful overinsurance of any property or health
1358 insurance risk.
1359 (8) If a life agent, violation of the code of ethics.
1360 (9) Cheating on an examination required for licensure or
1361 violating test center or examination procedures published
1362 orally, in writing, or electronically at the test site by
1363 authorized representatives of the examination program
1364 administrator. Communication of test center and examination
1365 procedures must be clearly established and documented.
1366 (10) Failure to inform the department in writing within 30
1367 days after pleading guilty or nolo contendere to, or being
1368 convicted or found guilty of, any felony or a crime punishable
1369 by imprisonment of 1 year or more under the law of the United
1370 States or of any state thereof, or under the law of any other

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1371 country without regard to whether a judgment of conviction has
1372 been entered by the court having jurisdiction of the case.
1373 (11) Knowingly aiding, assisting, procuring, advising, or
1374 abetting any person in the violation of or to violate a
1375 provision of the insurance code or any order or rule of the
1376 department, commission, or office.
1377 (12) Has been the subject of or has had a license, permit,
1378 appointment, registration, or other authority to conduct
1379 business subject to any decision, finding, injunction,
1380 suspension, prohibition, revocation, denial, judgment, final
1381 agency action, or administrative order by any court of competent
1382 jurisdiction, administrative law proceeding, state agency,
1383 federal agency, national securities, commodities, or option
1384 exchange, or national securities, commodities, or option
1385 association involving a violation of any federal or state
1386 securities or commodities law or any rule or regulation adopted
1387 thereunder, or a violation of any rule or regulation of any
1388 national securities, commodities, or options exchange or
1389 national securities, commodities, or options association.
1390 (13) Failure to comply with any civil, criminal, or
1391 administrative action taken by the child support enforcement
1392 program under Title IV-D of the Social Security Act, 42 U.S.C.
1393 ss. 651 et seq., to determine paternity or to establish, modify,
1394 enforce, or collect support.

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1395 (14) Directly or indirectly accepting any compensation,
1396 inducement, or reward from an inspector for the referral of the
1397 owner of the inspected property to the inspector or inspection
1398 company. This prohibition applies to an inspection intended for
1399 submission to an insurer in order to obtain property insurance
1400 coverage or establish the applicable property insurance premium.
1401 (15) Denial, suspension, or revocation of, or any other
1402 adverse administrative action against, a license to practice or
1403 conduct any regulated profession, business, or vocation by this
1404 state, any other state, any nation, any possession or district
1405 of the United States, any court, or any lawful agency thereof.
1406 (16) Taking an action that allows the personal financial
1407 or medical information of a consumer or customer to be made
1408 available or accessible to the general public, regardless of the
1409 format in which the record is stored.
1410 (17) Initiating in-person or telephone solicitation after
1411 9 p.m. or before 8 a.m. local time of the prospective customer
1412 unless requested by the prospective customer.
1413 (18) Cancellation of the applicant's, licensee's, or
1414 appointee's resident license in a state other than Florida.
1415 Section 27. Subsection (1) of section 626.731, Florida
1416 Statutes, is amended to read:
1417 626.731 Qualifications for general lines agent's license.—
1418 (1) The department may shall not grant or issue a license
1419 as general lines agent to any individual found by it to be
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1420 untrustworthy or incompetent or who does not meet each all of
1421 the following qualifications:
1422 (a) The applicant is a natural person at least 18 years of
1423 age.
1424 (b) The applicant is a United States citizen or legal
1425 alien who possesses work authorization from the United States
1426 Bureau of Citizenship and Immigration Services and is a bona
1427 fide resident of this state. An individual who is a bona fide
1428 resident of this state shall be deemed to meet the residence
1429 requirement of this paragraph, notwithstanding the existence at
1430 the time of application for license of a license in his or her
1431 name on the records of another state as a resident licensee of
1432 such other state, if the applicant furnishes a letter of
1433 clearance satisfactory to the department that the resident
1434 licenses have been canceled or changed to a nonresident basis
1435 and that he or she is in good standing.
1436 (c) The applicant's place of business will be located in
1437 this state and he or she will be actively engaged in the
1438 business of insurance and will maintain a place of business, the
1439 location of which is identifiable by and accessible to the
1440 public.
1441 (d) The license is not being sought for the purpose of
1442 writing or handling controlled business, in violation of s.
1443 626.730.

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1444 (e) The applicant is qualified as to knowledge,
1445 experience, or instruction in the business of insurance and
1446 meets the requirements provided in s. 626.732.
1447 (f) The applicant has passed any required examination for
1448 license required under s. 626.221.
1449 Section 28. Subsection (2) of section 626.785, Florida
1450 Statutes, is amended to read:
1451 626.785 Qualifications for license.—
1452 (2) An individual who is a bona fide resident of this
1453 state shall be deemed to meet the residence requirement of
1454 paragraph (1)(b), notwithstanding the existence at the time of
1455 application for license of a license in his or her name on the
1456 records of another state as a resident licensee of such other
1457 state, if the applicant furnishes a letter of clearance
1458 satisfactory to the department that the resident licenses have
1459 been canceled or changed to a nonresident basis and that he or
1460 she is in good standing.
1461 Section 29. Section 626.831, Florida Statutes, is amended
1462 to read:
1463 626.831 Qualifications for license.—
1464 (1) The department may shall not grant or issue a license
1465 as health agent as to any individual found by it to be
1466 untrustworthy or incompetent, or who does not meet all of the
1467 following qualifications:

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1468 (1)(a) Is Must be a natural person of at least 18 years of
1469 age.
1470 (2)(b) Is Must be a United States citizen or legal alien
1471 who possesses work authorization from the United States Bureau
1472 of Citizenship and Immigration Services and is a bona fide
1473 resident of this state.
1474 (3)(c) Is Must not be an employee of the United States
1475 Department of Veterans Affairs or state service office, as
1476 referred to in s. 626.833.
1477 (4)(d) Has taken Must take and passed pass any examination
1478 for license required under s. 626.221.
1479 (5)(e) Is Must be qualified as to knowledge, experience,
1480 or instruction in the business of insurance and meets meet the
1481 requirements relative thereto provided in s. 626.8311.
1482 (2) An individual who is a bona fide resident of this
1483 state shall be deemed to meet the residence requirement of
1484 paragraph (1)(b), notwithstanding the existence at the time of
1485 application for license of a license in his or her name on the
1486 records of another state as a resident licensee of such other
1487 state, if the applicant furnishes a letter of clearance
1488 satisfactory to the department that the resident licenses have
1489 been canceled or changed to a nonresident basis and that he or
1490 she is in good standing.
1491 Section 30. Subsection (5) of section 626.8417, Florida
1492 Statutes, is amended to read:
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1493 626.8417 Title insurance agent licensure; exemptions.-
1494 (5) An insurer may designate a corporate officer of the
1495 insuer to occasionally issue and countersign binders,
1496 commitments, and policies of title insurance. The designated
1497 officer is exempt from the provisions of this chapter relating
1498 to title insurance licensing and appointment requirements while
1499 the officer is acting within the scope of the designation.
1500 Section 31. Subsection (24) is added to section 626.854,
1501 Florida Statutes, to read:
1502 626.854 "Public adjuster" defined; prohibitions.—The
1503 Legislature finds that it is necessary for the protection of the
1504 public to regulate public insurance adjusters and to prevent the
1505 unauthorized practice of law.
1506 (24) A public adjuster, public adjuster apprentice, or
1507 public adjusting firm must respond with specific information to
1508 a written or electronic request for claims status from a
1509 claimant or insured or their designated representative within 14
1510 days after the date of the request and shall document in the
1511 file the response or information provided.
1512 Section 32. Subsection (4) of section 648.34, Florida
1513 Statutes, is amended to read:
1514 648.34 Bail bond agents; qualifications.—
1515 (4) The applicant shall furnish, with his or her
1516 application, a complete set of his or her fingerprints in
1517 accordance with s. 626.171(4) and a recent credential-sized,
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1518 fullface photograph of the applicant. The department may shall
1519 not authorize an applicant to take the required examination
1520 until the department has received a report from the Department
1521 of Law Enforcement and the Federal Bureau of Investigation
1522 relative to the existence or nonexistence of a criminal history
1523 report based on the applicant's fingerprints.
1524 Section 33. Subsection (2) of section 648.382, Florida
1525 Statutes, is amended to read:
1526 648.382 Appointment of bail bond agents and bail bond
1527 agencies; effective date of appointment.—
1528 (2) Before any appointment, an appropriate officer or
1529 official of the appointing insurer must obtain all of the
1530 following information submit:
1531 (a) A certified statement or affidavit to the department
1532 stating what investigation has been made concerning the proposed
1533 appointee and the proposed appointee's background and the
1534 appointing person's opinion to the best of his or her knowledge
1535 and belief as to the moral character and reputation of the
1536 proposed appointee. In lieu of such certified statement or
1537 affidavit, by authorizing the effectuation of an appointment for
1538 a licensee, the appointing entity certifies to the department
1539 that such investigation has been made and that the results of
1540 the investigation and the appointing person's opinion is that
1541 the proposed appointee is a person of good moral character and
1542 reputation and is fit to engage in the bail bond business.;
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1543 (b) An affidavit under oath on a form prescribed by the
1544 department, signed by the proposed appointee, stating that
1545 premiums are not owed to any insurer and that the appointee will
1546 discharge all outstanding forfeitures and judgments on bonds
1547 previously written. If the appointee does not satisfy or
1548 discharge such forfeitures or judgments, the former insurer
1549 shall file a notice, with supporting documents, with the
1550 appointing insurer, the former agent or agency, and the
1551 department, stating under oath that the licensee has failed to
1552 timely satisfy forfeitures and judgments on bonds written and
1553 that the insurer has satisfied the forfeiture or judgment from
1554 its own funds. Upon receipt of such notification and supporting
1555 documents, the appointing insurer shall immediately cancel the
1556 licensee's appointment. The licensee may be reappointed only
1557 upon certification by the former insurer that all forfeitures
1558 and judgments on bonds written by the licensee have been
1559 discharged. The appointing insurer or former agent or agency
1560 may, within 10 days, file a petition with the department seeking
1561 relief from this paragraph. Filing of the petition stays the
1562 duty of the appointing insurer to cancel the appointment until
1563 the department grants or denies the petition.;
1564 (c) Any other information that the department reasonably
1565 requires concerning the proposed appointee.; and

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1566 (d) Effective January 1, 2025, a certification that the
1567 appointing entity obtained from each appointee the following
1568 sworn statement:
1569
1570 Pursuant to section 648.382(2)(b), Florida Statutes, I
1571 do solemnly swear that I owe no premium to any insurer
1572 or agency and that I will discharge all outstanding
1573 forfeitures and judgments on bonds that have been
1574 previously written. I acknowledge that failure to do
1575 this will result in my active appointments being
1576 canceled.
1577
1578 An appointed bail bond agency must have the attestation under
1579 this paragraph signed by its owner.
1580 Section 34. Section 627.797, Florida Statutes, is
1581 repealed.
1582 Section 35. Subsection (11) of section 633.208, Florida
1583 Statutes, is amended to read:
1584 633.208 Minimum firesafety standards.—
1585 (11) Notwithstanding subsection (8), a single-family or
1586 two-family dwelling may not be reclassified for purposes of
1587 enforcing the Florida Fire Prevention Code solely due to such
1588 dwelling's use as or conversion into:
1589 (a) that is A certified recovery residence, as defined in
1590 s. 397.311, or that is a recovery residence, as defined in s.
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1591 397.311, that has a charter from an entity recognized or
1592 sanctioned by Congress; or
1593 (b) A residence owned by a tax-exempt charitable
1594 organization under s. 501(c)(3) of the Internal Revenue Code
1595 whose stated corporate purpose relates to the support of people
1596 who are living with a mental health disorder, which has no fewer
1597 than two and no more than four bedrooms, is occupied by a group
1598 or family of no more than six ambulatory adults living with a
1599 mental health disorder, and has no more than two adults assigned
1600 to any bedroom; or
1601 (c) residential migrant housing, as defined in s. 381.008,
1602 that has a permit from the Department of Health pursuant to s.
1603 381.0081 may not be reclassified for purposes of enforcing the
1604 Florida Fire Prevention Code solely due to such use.
1605 Section 36. Section 717.001, Florida Statutes, is amended
1606 to read:
1607 717.001 Short title.—This chapter may be cited as the
1608 "Florida Disposition of Abandoned Personal Unclaimed Property
1609 Act."
1610 Section 37. Present subsections (1) through (4), (5)
1611 through (8), (10) through (13), (15) through (20), (21), (22)
1612 through (28), and (31), (32), and (33) of section 717.101,
1613 Florida Statutes, are redesignated as subsections (4) through
1614 (7), (9) through (12), (13) through (16), (17) through (22),
1615 (24), (26) through (32), and (33), (34), and (35), respectively,
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1616 new subsections (1), (2), (3), (8), (23), and (25) are added to
1617 that section, and present subsections (1), (2), (5), (6), (8),
1618 (9), (12), (14), (16), (18), (19), (20), (22), (25), (29), and
1619 (30) of that section are amended, to read:
1620 717.101 Definitions.—As used in this chapter, unless the
1621 context otherwise requires:
1622 (1) "Abandoned property" means property held by a holder
1623 for which all of the following are true:
1624 (a) The apparent owner has shown no activity or indication
1625 of interest for the duration of the applicable dormancy period
1626 established under this chapter.
1627 (b) The holder has complied with the due diligence
1628 requirements set forth in this chapter, including the issuance
1629 of notice to the apparent owner, and has received no response or
1630 contact sufficient to demonstrate continued interest in the
1631 property.
1632 (c) For purposes of this chapter, property is presumed
1633 abandoned upon expiration of the applicable dormancy period
1634 established under this chapter. Once the dormancy period has
1635 expired, the holder must comply with the due diligence
1636 requirements set forth in 717.117. If the holder receives no
1637 response or contact sufficient to demonstrate continued interest
1638 in the property after completion of its due diligence efforts,
1639 the property is deemed abandoned and subject to reporting and

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Amendment No.

1640 remittance to the department for custodial holding on behalf of
1641 the owner.
1642 (2) "Abandoned Property Purchase Agreement" means the form
1643 adopted by the department pursuant to s. 717.135 which must be
1644 used, without modification or amendment, by a claimant
1645 representative to purchase abandoned property from an owner.
1646 (3) "Abandoned Property Recovery Agreement" means the form
1647 adopted by the department pursuant to s. 717.135 which must be
1648 used, without modification or amendment, by a claimant
1649 representative to obtain consent and authority to recover
1650 abandoned property on behalf of a person.
1651 (4)(1) "Aggregate" means the amounts reported for owners
1652 of abandoned unclaimed property of less than $10 or where there
1653 is no name for the individual or entity listed on the holder's
1654 records, regardless of the amount to be reported.
1655 (5)(2) "Apparent owner" means the person whose name
1656 appears on the records of the holder as the owner of the
1657 abandoned property, but whose status as the true owner entitled
1658 to receive the property may be subject to change due to the
1659 passage of time or changes in circumstances person entitled to
1660 property held, issued, or owing by the holder.
1661 (6) “Asset Purchaser” means a business association that has
1662 purchased property from a large business association as defined
1663 in s. 717.1356(6).

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1664 (8) "Authorized representative" means a person or entity
1665 legally empowered to act on behalf of the apparent owner or his
1666 or estate, including, but not limited to, an agent, a fiduciary,
1667 a personal representative, a trustee, a legal heir, a guardian,
1668 or any other individual or entity authorized by law or
1669 agreement.
1670 (9)(5) "Banking or financial organization" means any and
1671 all banks, trust companies, private bankers, savings banks,
1672 industrial banks, safe-deposit companies, savings and loan
1673 associations, credit unions, savings associations, banking
1674 organizations, international bank agencies, cooperative banks,
1675 building and loan associations, and investment companies in this
1676 state, organized under or subject to the laws of this state or
1677 of the United States, including entities organized under 12
1678 U.S.C. s. 611, but does not include federal reserve banks. The
1679 term also includes any corporation, business association, or
1680 other organization that:
1681 (a) Is a wholly or partially owned subsidiary of any
1682 banking, banking corporation, or bank holding company that
1683 performs any or all of the functions of a banking organization;
1684 or
1685 (b) Performs functions pursuant to the terms of a contract
1686 with any banking organization.
1687 (10)(6) "Business association" means any for-profit or
1688 nonprofit corporation other than a public corporation; joint
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1689 stock company; investment company; unincorporated association or
1690 association of two or more individuals for business purposes,
1691 whether or not for profit; partnership; joint venture; limited
1692 liability company; sole proprietorship; business trust; trust
1693 company; land bank; safe-deposit company; safekeeping
1694 depository; banking or financial organization; insurance
1695 company; federally chartered entity; utility company; transfer
1696 agent; or other business entity, whether or not for profit.
1697 (12)(8) "Claimant Claimant's representative" means an
1698 attorney who is a member in good standing with of The Florida
1699 Bar, a certified public accountant licensed in this state, or a
1700 private investigator who is duly licensed to do business in this
1701 the state, who is registered with the department, and authorized
1702 to file claims on behalf of persons with the department by the
1703 claimant to claim unclaimed property on the claimant's behalf.
1704 The term does not include a person acting in a representative or
1705 fiduciary capacity, such as a personal representative, guardian,
1706 trustee, or attorney, whose representation is not contingent
1707 upon the discovery or location of abandoned unclaimed property,
1708 and it expressly excludes locators, who engage in locating
1709 owners of abandoned property for a fee but are not registered
1710 with the department; provided, however, that any agreement
1711 entered into for the purpose of evading s. 717.135 is invalid
1712 and unenforceable.

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1713 (9) "Credit balance" means an account balance in the
1714 customer's favor.
1715 (15)(12) "Due diligence" means the use of reasonable and
1716 prudent methods under particular circumstances to locate
1717 apparent owners of presumed abandoned property inactive accounts
1718 using the taxpayer identification number or social security
1719 number, if known, which may include, but are not limited to,
1720 using a nationwide database, cross-indexing with other records
1721 of the holder, mailing to the last known address unless the last
1722 known address is known to be inaccurate, providing written
1723 notice as described in this chapter by electronic mail if an
1724 apparent owner has elected such delivery, or engaging a licensed
1725 agency or company capable of conducting such search and
1726 providing updated addresses.
1727 (14) "Financial organization" means a savings association,
1728 savings and loan association, savings bank, industrial bank,
1729 bank, banking organization, trust company, international bank
1730 agency, cooperative bank, building and loan association, or
1731 credit union.
1732 (18)(16) "Holder" means a person who is in possession of
1733 property belonging to another or who owes a debt or an
1734 obligation to another person, including, but not limited to,
1735 financial institutions, insurance companies, corporations,
1736 partnerships, fiduciaries, and government agencies:

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1737 (a) A person who is in possession or control or has
1738 custody of property or the rights to property belonging to
1739 another; is indebted to another on an obligation; or is
1740 obligated to hold for the account of, or to deliver or pay to,
1741 the owner, property subject to this chapter; or
1742 (b) A trustee in case of a trust.
1743 (20)(18) "Intangible property" includes, by way of
1744 illustration and not limitation:
1745 (a) Moneys, checks, virtual currency, drafts, deposits,
1746 interest, dividends, and income.
1747 (b) Credit balances, customer overpayments, security
1748 deposits and other instruments as defined by chapter 679,
1749 refunds, unpaid wages, unused airline tickets, and unidentified
1750 remittances.
1751 (c) Stocks, and other intangible ownership interests in
1752 business associations except for:
1753 1. A non-freely transferable security; or
1754 2. A security that is subject to a lien, legal hold, or
1755 restriction evidenced on the records of the holder or imposed by
1756 operation of law, if the lien, legal hold, or restriction
1757 restricts the holder's or owner's ability to receive, transfer,
1758 sell, or otherwise negotiate the security.
1759 (d) Moneys deposited to redeem stocks, bonds, bearer
1760 bonds, original issue discount bonds, coupons, and other
1761 securities, or to make distributions.
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1762 (e) Amounts due and payable under the terms of insurance
1763 policies.
1764 (f) Amounts distributable from a trust or custodial fund
1765 established under a plan to provide any health, welfare,
1766 pension, vacation, severance, retirement, death, stock purchase,
1767 profit sharing, employee savings, supplemental unemployment
1768 insurance, or similar benefit.
1769 (21)(19) "Last known address" means a description of the
1770 location of the apparent owner sufficient for the purpose of the
1771 delivery of mail. For the purposes of identifying, reporting,
1772 and remitting property to the department which is presumed to be
1773 unclaimed, the term "last known address" includes any partial
1774 description of the location of the apparent owner sufficient to
1775 establish the apparent owner was a resident of this state at the
1776 time of last contact with the apparent owner or at the time the
1777 property became due and payable.
1778 (22)(20) "Lawful charges" means charges against the
1779 property or the account in which the property is held dormant
1780 accounts that are authorized by statute for the purpose of
1781 offsetting the costs of maintaining the property or the account
1782 in which the property is held dormant account.
1783 (23) "Locator" means a private individual or business that
1784 locates owners of abandoned property in exchange for a fee,
1785 typically a percentage of the recovered property. Locators are

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1786 not employees or agents of the state and are not registered with
1787 the department.
1788 (25) "Non-freely transferable security" means a security
1789 that cannot be delivered to the administrator by the Depository
1790 Trust Clearing Corporation or similar custodian of securities
1791 providing post-trade clearing and settlement services to
1792 financial markets or cannot be delivered because there is no
1793 agent to effect transfer. The term includes a worthless
1794 security.
1795 (26)(22) "Owner" means the a person, or the person's legal
1796 representative, entitled to receive or having a legal or
1797 equitable interest in the abandoned property. An owner
1798 establishes his or her entitlement by filing a valid claim with
1799 the department pursuant or claim against property subject to
1800 this chapter; a depositor in the case of a deposit; a
1801 beneficiary in the case of a trust or a deposit in trust; or a
1802 payee in the case of a negotiable instrument or other intangible
1803 property.
1804 (29)(25) "Record" means information that is captured or
1805 maintained in any format, including written, printed,
1806 electronic, audio, visual, or other forms, and that can be made
1807 perceptible or understandable to a person, either directly or
1808 through technological means, including assistive technologies
1809 inscribed on a tangible medium or that is stored in an

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1810 electronic or other medium and is retrievable in perceivable
1811 form.
1812 (29) "Unclaimed Property Purchase Agreement" means the
1813 form adopted by the department pursuant to s. 717.135 which must
1814 be used, without modification or amendment, by a claimant's
1815 representative to purchase unclaimed property from an owner.
1816 (30) "Unclaimed Property Recovery Agreement" means the
1817 form adopted by the department pursuant to s. 717.135 which must
1818 be used, without modification or amendment, by a claimant's
1819 representative to obtain an owner's consent and authority to
1820 recover unclaimed property on the owner's behalf.
1821 Section 38. Section 717.102, Florida Statutes, is amended
1822 to read:
1823 717.102 Property presumed abandoned unclaimed; general
1824 rule.—
1825 (1) Except as otherwise provided by this chapter, all
1826 intangible property, including any income or increment thereon
1827 less any lawful charges, that is held, issued, or owing in the
1828 ordinary course of the holder's business and for which the
1829 apparent owner or authorized representative fails to demonstrate
1830 continued interest for more than the applicable dormancy period
1831 prescribed by this chapter shall be presumed abandoned claim
1832 such property for more than 5 years after the property becomes
1833 payable or distributable is presumed unclaimed, except as
1834 otherwise provided by this chapter. Unless otherwise specified
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1835 by law, the dormancy period shall be 5 years from the date the
1836 property becomes payable or distributable. For the purposes of
1837 this chapter, property shall be considered payable or
1838 distributable once the holder's obligation to pay or deliver the
1839 property arises, regardless of whether the apparent owner or
1840 authorized representative has failed to demand or to present
1841 documents required to receive payment.
1842 (2) Property is payable or distributable for the purpose
1843 of this chapter notwithstanding the owner's failure to make
1844 demand or to present any instrument or document required to
1845 receive payment.
1846 (3) A presumption that property is abandoned may be
1847 unclaimed is rebutted by the affirmative demonstration of
1848 continued interest by the apparent owner or authorized
1849 representative an apparent owner's expression of interest in the
1850 property. Such demonstration An owner's expression of continued
1851 interest in property includes, but is not limited to, any of the
1852 following:
1853 (a) A record communicated by the apparent owner or
1854 authorized representative to the holder or its agent of the
1855 holder concerning the property or the account in which the
1856 property is held.;
1857 (b) An oral communication by the apparent owner or
1858 authorized representative to the holder or its agent of the
1859 holder concerning the property or the account in which the
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1860 property is held, if the holder or its agent contemporaneously
1861 records makes and preserves evidence a record of the fact of the
1862 apparent owner's communication.;
1863 (c) Presentment of a check or other instrument for of
1864 payment of a dividends dividend, interest payment, or other
1865 distributions related to the property. distribution, with
1866 respect to an account, underlying security, or interest in a
1867 business association;
1868 (d) Any account activity initiated directed by an apparent
1869 owner or authorized representative in the account in which the
1870 property is held, including accessing the account or directing
1871 changes to information concerning the account, or to the amount
1872 or type of property held, excluding routine automatic
1873 transactions previously authorized, a direction by the apparent
1874 owner to increase, decrease, or otherwise change the amount or
1875 type of property held in the account.;
1876 (e) Any A deposit into or withdrawal from the property or
1877 the an account in which the property is held at a financial
1878 organization, excluding an automatic deposits, withdrawals, or
1879 reinvestments deposit or withdrawal previously authorized by the
1880 apparent owner or authorized representative. an automatic
1881 reinvestment of dividends or interest, which does not constitute
1882 an expression of interest; or
1883 (f) Any other action by the apparent owner or authorized
1884 representative which reasonably demonstrates to the holder that
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1885 the apparent owner or authorized representative is aware of and
1886 maintains an interest in knows that the property exists.
1887 (3)(4) If a holder learns or receives confirmation of an
1888 apparent owner's death, the property shall be presumed abandoned
1889 unclaimed 2 years after the date of death, unless an authorized
1890 representative makes an affirmative demonstration a fiduciary
1891 appointed to represent the estate of the apparent owner has made
1892 an expression of interest in the property before the expiration
1893 of the 2-year period. This subsection may not be construed to
1894 extend the otherwise applicable dormancy period prescribed by
1895 this chapter.
1896 Section 39. Section 717.103, Florida Statutes, is amended
1897 to read:
1898 717.103 General rules for taking custody of intangible
1899 abandoned unclaimed property.—Unless otherwise provided in this
1900 chapter or by other statute of this state, intangible property
1901 is subject to the custody of the department as abandoned
1902 unclaimed property when if the conditions leading to a
1903 presumption that the property is abandoned unclaimed as
1904 described in ss. 717.102 and 717.105-717.116 are satisfied and
1905 the holder has fulfilled all required due diligence obligations
1906 without receiving any response or claim from the apparent owner,
1907 and one or more of the following criteria apply:
1908 (1) The last known address, as shown on the records of the
1909 holder, of the apparent owner is in this state.;
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1910 (2) The records of the holder do not identify the name of
1911 the apparent owner, but do reflect the identity of the person
1912 entitled to the property, and it is established that the last
1913 known address of the apparent owner person entitled to the
1914 property is in this state.;
1915 (3) The records of the holder do not reflect the last
1916 known address of the apparent owner, but and it is established
1917 that either of the following conditions apply:
1918 (a) The last known address of the apparent owner person
1919 entitled to the property is in this state.; or
1920 (b) The holder is domiciled in this state, a domiciliary
1921 or is a government entity or governmental subdivision or agency
1922 of this state, and has not previously paid the property to the
1923 state of the last known address of the apparent owner. or other
1924 person entitled to the property;
1925 (4) The last known address, as shown on the records of the
1926 holder, of the apparent owner or other person entitled to the
1927 property is in a jurisdiction state that does not have
1928 applicable provide by law for the escheat, abandoned, or
1929 unclaimed property laws custodial taking of the property, or its
1930 escheat or unclaimed property law is not applicable to the
1931 property, and the holder is domiciled in this state a
1932 domiciliary or is a government entity or governmental
1933 subdivision or agency of this state.;

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1934 (5) The last known address, as shown on the records of the
1935 holder, of the apparent owner is in a foreign nation and the
1936 holder is domiciled in this state a domiciliary or is a
1937 government entity or governmental subdivision or agency of this
1938 state.; or
1939 (6) The transaction out of which the property arose
1940 occurred in this state, and both of the following are true:;
1941 (a)1. The last known address of the apparent owner or
1942 other person entitled to the property is unknown.; or
1943 2. The last known address of the apparent owner or other
1944 person entitled to the property is in a state that does not
1945 provide by law for the escheat or custodial taking of the
1946 property, or its escheat or unclaimed property law is not
1947 applicable to the property; and
1948 (b) The holder is domiciled in a jurisdiction a
1949 domiciliary of a state that does not have applicable provide by
1950 law for the escheat, abandoned, or custodial taking of the
1951 property, or its escheat or unclaimed property laws law is not
1952 applicable to the property.
1953 Section 40. Section 717.1035, Florida Statutes, is
1954 repealed.
1955 Section 41. Section 717.104, Florida Statutes, is amended
1956 to read:
1957 717.104 Traveler's checks and money orders.—

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1958 (1) Subject to subsection (4), any sum payable on a
1959 traveler's check that has been outstanding for more than 15
1960 years after its issuance is presumed abandoned unclaimed unless
1961 the apparent owner or authorized representative, within 15
1962 years, has demonstrated a continued interest in the property in
1963 accordance with s. 717.102 communicated in writing with the
1964 issuer concerning it or otherwise indicated an interest as
1965 evidenced by a memorandum or other record on file with the
1966 issuer.
1967 (2) Subject to subsection (4), any sum payable on a money
1968 order or similar written instrument, other than a third party
1969 bank check, that has been outstanding for more than 7 years
1970 after its issuance is presumed abandoned unclaimed unless the
1971 apparent owner or authorized representative, within 7 years, has
1972 demonstrated a continued interest in the property in accordance
1973 with s. 717.102 communicated in writing with the issuer
1974 concerning it or otherwise indicated an interest as evidenced by
1975 a memorandum or other record on file with the issuer.
1976 (3) A No holder may not deduct from the amount of any
1977 traveler's check or money order any charges imposed by reason of
1978 the failure to present those instruments for payment unless
1979 there is a valid and enforceable written contract between the
1980 holder issuer and the apparent owner of the property pursuant to
1981 which the holder issuer may impose those charges and the holder
1982 issuer regularly imposes those charges and does not regularly
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Amendment No.

1983 reverse or otherwise cancel those charges with respect to the
1984 property.
1985 (4) No sum payable on a traveler's check, money order, or
1986 similar written instrument, other than a third party bank check,
1987 described in subsections (1) and (2) may be subjected to the
1988 custody of this state as abandoned unclaimed property unless any
1989 of the following conditions are met:
1990 (a) The records of the holder issuer show that the
1991 traveler's check, money order, or similar written instrument was
1992 purchased in this state.;
1993 (b) The holder issuer has its principal place of business
1994 in this state and its the records of the issuer do not show the
1995 state in which the traveler's check, money order, or similar
1996 written instrument was purchased.; or
1997 (c) The holder issuer has its principal place of business
1998 in this state; the holder's records of the issuer show the state
1999 in which the traveler's check, money order, or similar written
2000 instrument was purchased; and the laws of the state of purchase
2001 does not provide applicable do not provide for the escheat,
2002 abandoned, or unclaimed property laws or custodial taking of the
2003 property, or its escheat or unclaimed property law is not
2004 applicable to the property.
2005 (5) Notwithstanding any other provision of this chapter,
2006 subsection (4) applies to sums payable on traveler's checks,
2007 money orders, and similar written instruments presumed abandoned
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Amendment No.

2008 unclaimed on or after February 1, 1965, except to the extent
2009 that those sums have been paid over to a state prior to January
2010 1, 1974.
2011 Section 42. Section 717.1045, Florida Statutes, is amended
2012 to read:
2013 717.1045 Gift certificates and similar credit items.—
2014 Notwithstanding s. 717.117, an unredeemed gift certificate or
2015 credit memo as defined in s. 501.95 is not required to be
2016 reported as abandoned unclaimed property.
2017 (1) The consideration paid for an unredeemed gift
2018 certificate or credit memo is the property of the issuer of the
2019 unredeemed gift certificate or credit memo.
2020 (2) An unredeemed gift certificate or credit memo is
2021 subject only to any rights of a purchaser or owner thereof and
2022 is not subject to a claim made by any state acting on behalf of
2023 a purchaser or owner.
2024 (3) It is the intent of the Legislature that this section
2025 apply to the custodial holding of unredeemed gift certificates
2026 and credit memos.
2027 (4) However, a gift certificate or credit memo described
2028 in s. 501.95(2)(b) shall be reported as abandoned unclaimed
2029 property. The consideration paid for such a gift certificate or
2030 credit memo is the property of the owner of the gift certificate
2031 or credit memo.

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Amendment No.

2032 Section 43. Section 717.105, Florida Statutes, is amended
2033 to read:
2034 717.105 Checks, drafts, and similar instruments issued or
2035 certified by banking and financial organizations.—
2036 (1) Any sum payable on a check, draft, or similar
2037 instrument, except those subject to ss. 717.104 and 717.115, on
2038 which a banking or financial organization is directly liable,
2039 including, but not limited to, a cashier's check or a certified
2040 check, which has been outstanding for more than 5 years after it
2041 was payable or after its issuance if payable on demand, is
2042 presumed abandoned unclaimed unless the apparent owner or
2043 authorized representative, within 5 years, has communicated in
2044 writing with the banking or financial organization concerning it
2045 or otherwise demonstrated a continued interest in the property
2046 in accordance with s. 717.102 indicated an interest as evidenced
2047 by a memorandum or other record on file with the banking or
2048 financial organization.
2049 (2) A No holder may not deduct from the amount of any
2050 instrument subject to this section any charges imposed by reason
2051 of the failure to present the instrument for encashment unless
2052 there is a valid and enforceable written contract between the
2053 holder and the apparent owner of the instrument pursuant to
2054 which the holder may impose those charges and does not regularly
2055 reverse or otherwise cancel those charges with respect to the
2056 instrument.
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Amendment No.

2057 Section 44. Subsection (1), paragraphs (a) and (b) of
2058 subsection (3), and subsections (4) and (5) of section 717.106,
2059 Florida Statutes, are amended to read:
2060 717.106 Bank deposits and funds in financial
2061 organizations.—
2062 (1) Any demand, savings, or matured time deposit with a
2063 banking or financial organization, including deposits that are
2064 automatically renewable, and any funds paid toward the purchase
2065 of shares, a mutual investment certificate, or any other
2066 interest in a banking or financial organization is presumed
2067 abandoned unclaimed unless the apparent owner or authorized
2068 representative has, within 5 years, engaged in any of the
2069 following activities:
2070 (a) Increased or decreased the amount of the deposit or
2071 presented the passbook or other similar evidence of the deposit
2072 for the crediting of interest.;
2073 (b) Communicated in writing or by documented telephone
2074 contact with the banking or financial organization concerning
2075 the property.;
2076 (c) Otherwise demonstrated a continued indicated an
2077 interest in the property as evidenced by a memorandum or other
2078 record on file with the banking or financial organization.;
2079 (d) Owned other property to which paragraph (a), paragraph
2080 (b), or paragraph (c) is applicable and if the banking or
2081 financial organization communicates in writing with the owner
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Amendment No.

2082 with regard to the property that would otherwise be presumed
2083 abandoned unclaimed under this subsection at the address to
2084 which communications regarding the other property regularly are
2085 sent.; or
2086 (e) Had another relationship with the banking or financial
2087 organization concerning which the apparent owner has:
2088 1. Communicated in writing with the banking or financial
2089 organization; or
2090 2. Otherwise demonstrated a continued indicated an
2091 interest as evidenced by a memorandum or other record on file
2092 with the banking or financial organization and if the banking or
2093 financial organization communicates in writing with the apparent
2094 owner or authorized representative with regard to the property
2095 that would otherwise be presumed abandoned unclaimed under this
2096 subsection at the address to which communications regarding the
2097 other relationship regularly are sent.
2098 (3) A No holder may not impose with respect to property
2099 described in subsection (1) any charges due to dormancy or
2100 inactivity or cease payment of interest unless:
2101 (a) There is an enforceable written contract between the
2102 holder and the apparent owner of the property pursuant to which
2103 the holder may impose those charges or cease payment of
2104 interest.
2105 (b) For property in excess of $2, the holder, no more than
2106 3 months prior to the initial imposition of those charges or
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Amendment No.

2107 cessation of interest, has given written notice to the apparent
2108 owner of the amount of those charges at the last known address
2109 of the apparent owner stating that those charges shall be
2110 imposed or that interest shall cease, but the notice provided in
2111 this section need not be given with respect to charges imposed
2112 or interest ceased before July 1, 1987.
2113 (4) Any property described in subsection (1) that is
2114 automatically renewable is matured for purposes of subsection
2115 (1) upon the expiration of its initial time period except that,
2116 in the case of any renewal to which the apparent owner consents
2117 at or about the time of renewal by communicating in writing with
2118 the banking or financial organization or otherwise indicating
2119 consent as evidenced by a memorandum or other record on file
2120 prepared by an employee of the organization, the property is
2121 matured upon the expiration of the last time period for which
2122 consent was given. If, at the time provided for delivery in s.
2123 717.119, a penalty or forfeiture in the payment of interest
2124 would result from the delivery of the property, the time for
2125 delivery is extended until the time when no penalty or
2126 forfeiture would result.
2127 (5) If the documents establishing a deposit described in
2128 subsection (1) state the address of a beneficiary of the
2129 deposit, and the account has a value of at least $50, notice
2130 shall be given to the beneficiary as provided for notice to the

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Amendment No.

2131 apparent owner under s. 717.117 s. 717.117(6). This subsection
2132 shall apply to accounts opened on or after October 1, 1990.
2133 Section 45. Subsection (1) of section 717.107, Florida
2134 Statutes, is amended to read:
2135 717.107 Funds owing under life insurance policies, annuity
2136 contracts, and retained asset accounts; fines, penalties, and
2137 interest; United States Social Security Administration Death
2138 Master File.—
2139 (1) Funds held or owing under any life or endowment
2140 insurance policy or annuity contract which has matured or
2141 terminated are presumed abandoned unclaimed if unclaimed for
2142 more than 5 years after the date of death of the insured, the
2143 annuitant, or the retained asset account holder, but property
2144 described in paragraph (3)(d) is presumed abandoned unclaimed if
2145 such property is not claimed for more than 2 years. The amount
2146 presumed abandoned unclaimed shall include any amount due and
2147 payable under s. 627.4615.
2148 Section 46. Section 717.1071, Florida Statutes, is amended
2149 to read:
2150 717.1071 Lost owners of abandoned unclaimed
2151 demutualization, rehabilitation, or related reorganization
2152 proceeds.—
2153 (1) Property distributable in the course of a
2154 demutualization, rehabilitation, or related reorganization of an
2155 insurance company is deemed abandoned 2 years after the date the
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Amendment No.

2156 property is first distributable if, at the time of the first
2157 distribution, the last known address of the apparent owner on
2158 the books and records of the holder is known to be incorrect or
2159 the distribution or statements are returned by the post office
2160 as undeliverable; and the apparent owner or authorized
2161 representative owner has not communicated in writing with the
2162 holder or its agent regarding the interest or otherwise
2163 communicated with the holder regarding the interest as evidenced
2164 by a memorandum or other record on file with the holder or its
2165 agent.
2166 (2) Property distributable in the course of
2167 demutualization, rehabilitation, or related reorganization of a
2168 mutual insurance company that is not subject to subsection (1)
2169 shall be reportable as otherwise provided by this chapter.
2170 (3) Property subject to this section shall be reported and
2171 delivered no later than May 1 as of the preceding December 31;
2172 however, the initial report under this section shall be filed no
2173 later than November 1, 2003, as of December 31, 2002.
2174 Section 47. Section 717.108, Florida Statutes, is amended
2175 to read:
2176 717.108 Deposits held by utilities.—Any deposit, including
2177 any interest thereon, made by a subscriber with a utility to
2178 secure payment or any sum paid in advance for utility services
2179 to be furnished, less any lawful charges, that remains unclaimed
2180 by the apparent owner for more than 1 year after termination of
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Amendment No.

2181 the services for which the deposit or advance payment was made
2182 is presumed abandoned unclaimed.
2183 Section 48. Section 717.109, Florida Statutes, is amended
2184 to read:
2185 717.109 Refunds held by business associations.—Except as
2186 otherwise provided by law, any sum that a business association
2187 has been ordered to refund by a court or administrative agency
2188 which has been unclaimed by the apparent owner for more than 1
2189 year after it became payable in accordance with the final
2190 determination or order providing for the refund, regardless of
2191 whether the final determination or order requires any person
2192 entitled to a refund to make a claim for it, is presumed
2193 abandoned unclaimed.
2194 Section 49. Section 717.1101, Florida Statutes, is amended
2195 to read:
2196 717.1101 Abandoned Unclaimed equity and debt of business
2197 associations.—
2198 (1)(a) Stock, or other equity interests, or debt of
2199 interest in a business association is presumed abandoned
2200 unclaimed on the date of the earliest of any of the following:
2201 1. Three years after the date a communication, other than
2202 communications required by s. 717.117, sent by the holder by
2203 first-class United States mail to the apparent owner is returned
2204 to the holder undelivered by the United States Postal Service.
2205 If such returned communication is resent within 1 month to the
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Amendment No.

2206 apparent owner, the 3-year dormancy period does not begin until
2207 the day the resent item is returned as undelivered.
2208 2. Five Three years after the most recent of any account
2209 owner-generated activity or communication initiated by the
2210 apparent owner or authorized representative which demonstrates
2211 continued interest in the related to the account, as recorded
2212 and maintained by in the holder. Routine automatic reinvestments
2213 or other routine transactions previously authorized by the
2214 apparent owner or authorized representative do not prevent,
2215 interrupt, or reset the dormancy period and do not constitute an
2216 affirmative demonstration of continued interest. holder's
2217 database and records systems sufficient enough to demonstrate
2218 the owner's continued awareness or interest in the property;
2219 3.2. Two Three years after the date of the death of the
2220 apparent owner, as evidenced by:
2221 a. Notice to the holder of the apparent owner's death by
2222 an authorized representative administrator, beneficiary,
2223 relative, or trustee, or by a personal representative or other
2224 legal representative of the owner's estate;
2225 b. Receipt by the holder of a copy of the death
2226 certificate of the apparent owner;
2227 c. Confirmation by the holder of the apparent owner's
2228 death through though other means; or
2229 d. Other evidence from which the holder may reasonably
2230 conclude that the apparent owner is deceased.; or
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Amendment No.

2231 3. One year after the date on which the holder receives
2232 notice under subparagraph 2. if the notice is received 2 years
2233 or less after the owner's death and the holder lacked knowledge
2234 of the owner's death during that period of 2 years or less.
2235 (b) If the holder does not send communication to the
2236 apparent owner of a security by first-class United States mail
2237 on an annual basis, the holder shall attempt to confirm the
2238 apparent owner's interest in the equity interest by sending the
2239 apparent owner an e-mail communication not later than 3 years
2240 after the apparent owner's or authorized representative's last
2241 demonstration of continued interest in the equity interest.
2242 However, the holder shall promptly attempt to contact the
2243 apparent owner by first-class United States mail if:
2244 1. The holder does not have information needed to send the
2245 apparent owner an e-mail communication or the holder believes
2246 that the apparent owner's e-mail address in the holder's records
2247 is not valid;
2248 2. The holder received notification that the e-mail
2249 communication was not received; or
2250 3. The apparent owner does not respond to the e-mail
2251 communication within 30 days after the communication was sent.
2252 (c) If first-class United States mail sent under paragraph
2253 (b) is returned to the holder undelivered by the United States
2254 Postal Service, the equity interest is presumed abandoned in
2255 accordance with paragraph (1)(a).
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2256 (d) Unmatured or unredeemed debt, other than a bearer bond
2257 or an original issue discount bond, is presumed abandoned 5
2258 unclaimed 3 years after the date of the most recent interest
2259 payment unclaimed by the owner.
2260 (e)(c) Matured or redeemed debt is presumed abandoned 5
2261 unclaimed 3 years after the date of maturity or redemption.
2262 (f)(d) At the time property is presumed abandoned
2263 unclaimed under paragraph (a) or paragraph (b), any other
2264 property right accrued or accruing to the owner as a result of
2265 the property interest and not previously presumed abandoned
2266 unclaimed is also presumed abandoned unclaimed.
2267 (g) If the property is virtual currency, a statement that
2268 the virtual currency will be liquated by the holder before it is
2269 remitted to the department and that only the proceeds of
2270 liquidation will be transferred.
2271 (2) The running of the applicable dormancy period under
2272 this section such 3-year period ceases if the apparent owner or
2273 authorized representative demonstrates continued interest under
2274 s. 717.102, including by any of the following actions person:
2275 (a)1. Communicating Communicates in writing or by other
2276 means with the association or its agent regarding the interest,
2277 or a dividend, distribution, or other sum payable as a result of
2278 the interest, as recorded by the association or its agent; or
2279 2. Otherwise communicates with the association regarding
2280 the interest or a dividend, distribution, or other sum payable
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Amendment No.

2281 as a result of the interest, as evidenced by a memorandum or
2282 other record on file with the association or its agent.
2283 (b) Presenting Presents an instrument issued to pay
2284 interest, or a dividend, or other cash distribution. If any
2285 future dividend, distribution, or other sum payable to the owner
2286 as a result of the interest is subsequently unclaimed not
2287 claimed by the owner, a new period in which the property is
2288 presumed abandoned unclaimed commences and relates back only to
2289 the time a subsequent dividend, distribution, or other sum
2290 became due and payable.
2291 (3) At the same time any interest is presumed abandoned
2292 unclaimed under this section, any dividend, distribution, or
2293 other sum then held for or owing to the owner as a result of the
2294 interest, is presumed abandoned unclaimed.
2295 (4) Any dividend, profit, distribution, interest
2296 redemption, payment on principal, or other sum held or owing by
2297 a business association for or to a shareholder,
2298 certificateholder, member, bondholder, or other security holder,
2299 who has not claimed such amount or corresponded in writing with
2300 the business association concerning such amount, within 5 3
2301 years after the date prescribed for payment or delivery, is
2302 presumed abandoned unclaimed.
2303 (5) Notwithstanding any other provision of this section,
2304 equity interests in business association and securities accounts

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Amendment No.

2305 are not presumed abandoned solely due to inactivity if the
2306 holder knows the location of the apparent owner.
2307 (a) For purposes of this subsection, a holder shall perform
2308 data matching of owner records maintained in its database
2309 against commercially available third-party data comparison
2310 sources to identify updated owner address information and
2311 indicators of deceased status. Utilizing any updated
2312 information, together with existing information of record, the
2313 holder is deemed to know the location of the apparent owner if:
2314 1. The holder communicates with the apparent owner at least
2315 annually by first-class United State mail or electronic means,
2316 including but not limited to, electronic mail, text message,
2317 mobile application, or similar mechanism;
2318 2. Such communication is successfully delivered, meaning
2319 not returned as undeliverable, and;
2320 3. One or more additional account-level indicators
2321 demonstrating an owner indication of interest occurs at least
2322 once every 10 years, including:
2323 a. Owner-initiated activity, such as authenticated access
2324 to website, mobile engagement via mobile messaging, or other
2325 authenticated third party account servicing software;
2326 b. Updated contact information received authorized
2327 financial adviser;
2328 c. Responses to account notifications or alerts;
2329 d. Negotiation of distributions, including dividends; or
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Amendment No.

2330 e. Any other action by the apparent owner or authorized
2331 representative which reasonably demonstrates to the holder that
2332 the apparent owner or authorized representative is aware of and
2333 maintains an interest in the property.
2334 (b) Automatic deposits, reinvestments, or other recurring
2335 transactions initiated by the holder shall not independently
2336 constitute an indication of apparent owner interest for purposes
2337 of this section.
2338 (c) If the conditions in paragraph (a) are not satisfied, the
2339 owner’s location is deemed unknown, and the equity interest or
2340 securities account may be presumed abandoned:
2341 1. 10 years after the owner’s most recent indication of
2342 interest in the property; or
2343 2. 10 years after the date a communication is returned as
2344 undeliverable, unless the owner responses to a due diligence
2345 notice before the reporting deadline.
2346 (d) Property described in paragraph (c) may be presumed
2347 abandoned only after reasonable efforts to locate the owner have
2348 been unsuccessful and the holder has complied with the due
2349 diligence requirement of this chapter.
2350 (e) This subsection applies to equity interests and
2351 securities accounts held directly by the owner or indirectly
2352 through a brokerage account or similar account.
2353 Section 50. Section 717.111, Florida Statutes, is amended
2354 to read:
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Amendment No.

2355 717.111 Property of business associations held in course
2356 of dissolution.—All intangible property distributable in the
2357 course of a voluntary or involuntary dissolution of a business
2358 association which is not claimed by the apparent owner for more
2359 than 6 months after the date specified for final distribution is
2360 presumed abandoned unclaimed.
2361 Section 51. Subsections (1) and (5) of section 717.112,
2362 Florida Statutes, are amended to read:
2363 717.112 Property held by agents and fiduciaries.—
2364 (1) All intangible property and any income or increment
2365 thereon held in a fiduciary capacity for the benefit of another
2366 person, including property held by an attorney in fact or an
2367 agent, except as provided in ss. 717.1125 and 733.816, is
2368 presumed abandoned unclaimed unless the apparent owner has
2369 within 5 years after it has become payable or distributable
2370 increased or decreased the principal, accepted payment of
2371 principal or income, communicated in writing concerning the
2372 property, or otherwise indicated an interest as evidenced by a
2373 memorandum or other record on file with the fiduciary.
2374 (5) All intangible property, and any income or increment
2375 thereon, issued by a government or governmental subdivision or
2376 agency, public corporation, or public authority and held in an
2377 agency capacity for the governmental subdivision, agency, public
2378 corporation, or public authority for the benefit of the owner of
2379 record, is presumed abandoned unclaimed unless the apparent
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2380 owner has, within 1 year after such property has become payable
2381 or distributable, increased or decreased the principal, accepted
2382 payment of the principal or income, communicated concerning the
2383 property, or otherwise indicated an interest in the property as
2384 evidenced by a memorandum or other record on file with the
2385 fiduciary.
2386 Section 52. Section 717.1125, Florida Statutes, is amended
2387 to read:
2388 717.1125 Property held by fiduciaries under trust
2389 instruments.—All intangible property and any income or increment
2390 thereon held in a fiduciary capacity for the benefit of another
2391 person under a trust instrument is presumed abandoned unclaimed
2392 unless the apparent owner has, within 2 years after it has
2393 become payable or distributable, increased or decreased the
2394 principal, accepted payment of principal or income, communicated
2395 concerning the property, or otherwise indicated an interest as
2396 evidenced by a memorandum or other record on file with the
2397 fiduciary. This section does not relieve a fiduciary of his or
2398 her duties under the Florida Trust Code.
2399 Section 53. Section 717.113, Florida Statutes, is amended
2400 to read:
2401 717.113 Property held by courts and public agencies.—All
2402 intangible property held for the apparent owner by any court,
2403 government or governmental subdivision or agency, public
2404 corporation, or public authority that has not been claimed by
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2405 the apparent owner for more than 1 year after it became payable
2406 or distributable is presumed abandoned unclaimed. Except as
2407 provided in s. 45.032(3)(c), money held in the court registry
2408 and for which no court order has been issued to determine an
2409 owner does not become payable or distributable and is not
2410 subject to reporting under this chapter. Notwithstanding the
2411 provisions of this section, funds deposited in the Minerals
2412 Trust Fund pursuant to s. 377.247 are presumed abandoned
2413 unclaimed only if the funds have not been claimed by the
2414 apparent owner for more than 5 years after the date of first
2415 production from the well.
2416 Section 54. Section 717.115, Florida Statutes, is amended
2417 to read:
2418 717.115 Wages.—Unpaid wages, including wages represented
2419 by unpresented payroll checks, owing in the ordinary course of
2420 the holder's business that have not been claimed by the apparent
2421 owner for more than 1 year after becoming payable are presumed
2422 abandoned unclaimed.
2423 Section 55. Section 717.116, Florida Statutes, is amended
2424 to read:
2425 717.116 Contents of safe-deposit box or other safekeeping
2426 repository.—All tangible and intangible property held by a
2427 banking or financial organization in a safe-deposit box or any
2428 other safekeeping repository in this state in the ordinary
2429 course of the holder's business, and proceeds resulting from the
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Amendment No.

2430 sale of the property permitted by law, that has not been claimed
2431 by the apparent owner or authorized representative for more than
2432 3 years after the lease or rental period on the box or other
2433 repository has expired are presumed abandoned unclaimed.
2434 Section 56. Section 717.117, Florida Statutes, is amended
2435 to read:
2436 717.117 Holder due diligence and report of abandoned
2437 unclaimed property.—
2438 (1) Property is presumed abandoned upon expiration of the
2439 applicable dormancy period under this chapter. However, such
2440 property is not deemed abandoned for purposes of reporting or
2441 remittance to the department until the holder has conducted
2442 reasonable due diligence as required by this section, resulting
2443 in no indication of interest from the apparent owner or
2444 authorized representative.
2445 (2) Holders of property presumed abandoned that has a
2446 value of $50 or more shall use due diligence to locate and
2447 notify the apparent owner that the holder is in possession of
2448 property subject to this chapter. At least 90 days, but not more
2449 than 180 days, before filing the report required by this
2450 section, a holder in possession of presumed abandoned property
2451 shall send written notice by first-class United States mail to
2452 the apparent owner's last known address as shown in the holder's
2453 records or from other available sources, or by e-mail if the
2454 apparent owner has elected for e-mail delivery, informing the
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Amendment No.

2455 apparent owner that the holder is in possession of property
2456 subject to this chapter, provided that the holder's records
2457 contain a mailing or e-mail address for the apparent owner which
2458 is not known by the holder to be inaccurate. The holder may
2459 provide notice by mail, by e-mail, or by both methods. If the
2460 holder's records indicate that the mailing address is
2461 inaccurate, notice may be provided by e-mail if the apparent
2462 owner has elected e-mail delivery.
2463 (3) If the value of the property is greater than $1,000,
2464 the holder shall send a second written notice by certified
2465 United States mail, return receipt requested, to the apparent
2466 owner's last known address at least 60 days before filing the
2467 report required by this section, if the holder's records contain
2468 a mailing address for the apparent owner which is not known by
2469 the holder to be inaccurate. Reasonable costs paid to the United
2470 States Postal Service for certified mail, return receipt
2471 requested, may be deducted from the property as a service
2472 charge. A signed return receipt received in response to the
2473 certified mail notice constitutes an affirmative demonstration
2474 of continued interest as described in s. 717.102.
2475 (4) The written notice required under this section must
2476 include:
2477 (a) A heading that reads substantially as follows:
2478 "Notice: The State of Florida requires us to notify you that
2479 your property may be transferred to the custody of the Florida
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2480 Department of Financial Services if you do not contact us before
2481 ...(insert date that is at least 30 days after the date of
2482 notice)...."
2483 (b) A description of the type, nature, and, unless the
2484 property does not have a fixed value, value of the property that
2485 is the subject of the notice.
2486 (c) A statement that the property will be turned over to
2487 the custody of the department as abandoned property if no
2488 response is received.
2489 (d) A statement that noncash property will be sold or
2490 liquidated by the department.
2491 (e) A statement that, after the property is remitted to
2492 the department, a claim must be filed with the department to
2493 recover the property.
2494 (f) A statement that the property is currently in the
2495 custody of the holder and that the apparent owner may prevent
2496 transfer of the property by contacting the holder before the
2497 deadline stated in the notice.
2498 (5) Every holder of abandoned person holding funds or
2499 other property, tangible or intangible, presumed unclaimed and
2500 subject to custody as unclaimed property under this chapter
2501 shall submit a report to the department via electronic medium as
2502 the department may prescribe by rule. The report must include:
2503 (a) Except for traveler's checks and money orders, the
2504 name, social security number or taxpayer identification number,
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Amendment No.

2505 date of birth, if known, and last known address, if any, of each
2506 apparent person appearing from the records of the holder to be
2507 the owner of any property which is abandoned presumed unclaimed
2508 and which has a value of $10 or more.
2509 (b) For abandoned unclaimed funds that have a value of $10
2510 or more held or owing under any life or endowment insurance
2511 policy or annuity contract, the identifying information provided
2512 in paragraph (a) for both the insured or annuitant and the
2513 beneficiary according to records of the insurance company
2514 holding or owing the funds.
2515 (c) For all tangible property held in a safe-deposit box
2516 or other safekeeping repository, a description of the property
2517 and the place where the property is held and may be inspected by
2518 the department, and any amounts owing to the holder. Contents of
2519 a safe-deposit box or other safekeeping repository which consist
2520 of documents or writings of a private nature and which have
2521 little or no commercial value may apparent value shall not be
2522 reported as abandoned property presumed unclaimed.
2523 (d) The nature or type of property, any accounting or
2524 identifying number associated with the property, a description
2525 of the property, and the amount appearing from the records to be
2526 due. Items of value of less than $10 each may be reported in the
2527 aggregate.

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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2528 (e) The date the property became payable, demandable, or
2529 returnable, and the date of the last transaction with the
2530 apparent owner with respect to the property.
2531 (f) Any other information the department may prescribe by
2532 rule as necessary for the administration of this chapter.
2533 (6)(2) If the total value of all abandoned presumed
2534 unclaimed property, whether tangible or intangible, held by a
2535 person is less than $10, a zero balance report may be filed for
2536 that reporting period.
2537 (7)(3) Credit balances, customer overpayments, security
2538 deposits, and refunds having a value of less than $10 may not be
2539 reported as abandoned property shall not be presumed unclaimed.
2540 (8) A security identified by the holder as non-freely
2541 transferable or worthless may not to be included in a report
2542 filed under this section. If the holder determines that a
2543 security is no longer non-freely transferable or worthless, the
2544 holder shall report and deliver the security on the next regular
2545 report date prescribed for delivery of securities by the holder
2546 under this chapter.
2547 (9)(4) If the holder of abandoned property presumed
2548 unclaimed and subject to custody under this chapter as unclaimed
2549 property is a successor holder or if the holder has changed the
2550 holder's name while in possession of the property, the holder
2551 shall file with the holder's report all known names and
2552 addresses of each prior holder of the property. Compliance with
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Amendment No.

2553 this subsection means the holder exercises reasonable and
2554 prudent efforts to determine the names of all prior holders.
2555 (10) The report must be signed by or on behalf of the
2556 holder and verified as to its completeness and accuracy, and the
2557 holder must state that it has complied with the due diligence
2558 requirements of this section.
2559 (11)(5) The report must be filed before May 1 of each
2560 year. The report applies to the preceding calendar year. Upon
2561 written request by any person required to file a report, and
2562 upon a showing of good cause, the department may extend the
2563 reporting date. The department may impose and collect a penalty
2564 of $10 per day up to a maximum of $500 for the failure to timely
2565 report, if an extension was not provided or if the holder of the
2566 property failed to include in a report information required by
2567 this chapter which was in the holder's possession at the time of
2568 reporting. The penalty shall be remitted to the department
2569 within 30 days after the date of the notification to the holder
2570 that the penalty is due and owing. As necessary for proper
2571 administration of this chapter, the department may waive any
2572 penalty due with appropriate justification. The department must
2573 provide information contained in a report filed with the
2574 department to any person requesting a copy of the report or
2575 information contained in a report, to the extent the information
2576 requested is not confidential, within 45 days after the
2577 department determines that the report is accurate and acceptable
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Amendment No.

2578 and that the reported property is the same as the remitted
2579 property.
2580 (6) Holders of inactive accounts having a value of $50 or
2581 more shall use due diligence to locate and notify apparent
2582 owners that the entity is holding unclaimed property available
2583 for them to recover. Not more than 120 days and not less than 60
2584 days prior to filing the report required by this section, the
2585 holder in possession of property presumed unclaimed and subject
2586 to custody as unclaimed property under this chapter shall send
2587 written notice by first-class United States mail to the apparent
2588 owner at the apparent owner's last known address from the
2589 holder's records or from other available sources, or via
2590 electronic mail if the apparent owner has elected this method of
2591 delivery, informing the apparent owner that the holder is in
2592 possession of property subject to this chapter, if the holder
2593 has in its records a mailing or electronic address for the
2594 apparent owner which the holder's records do not disclose to be
2595 inaccurate. These two means of contact are not mutually
2596 exclusive; if the mailing address is determined to be
2597 inaccurate, electronic mail may be used if so elected by the
2598 apparent owner.
2599 (7) The written notice to the apparent owner required
2600 under this section must:
2601 (a) Contain a heading that reads substantially as follows:
2602 "Notice. The State of Florida requires us to notify you that
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2603 your property may be transferred to the custody of the Florida
2604 Department of Financial Services if you do not contact us before
2605 ...(insert date that is at least 30 days after the date of
2606 notice)...."
2607 (b) Identify the type, nature, and, except for property
2608 that does not have a fixed value, value of the property that is
2609 the subject of the notice.
2610 (c) State that the property will be turned over to the
2611 custody of the department as unclaimed property if no response
2612 to this letter is received.
2613 (d) State that any property that is not legal tender of
2614 the United States may be sold or liquidated by the department.
2615 (e) State that after the property is turned over to the
2616 department, an apparent owner seeking return of the property may
2617 file a claim with the department.
2618 (f) State that the property is currently with a holder and
2619 provide instructions that the apparent owner must follow to
2620 prevent the holder from reporting and paying for the property or
2621 from delivering the property to the department.
2622 (12)(8) Any holder of intangible property may file with
2623 the department a petition for determination that the property is
2624 abandoned and unclaimed requesting the department to accept
2625 custody of the property. The petition shall state any special
2626 circumstances that exist, contain the information required by
2627 subsection (9) subsection (4), and show that a diligent search
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2628 has been made to locate the apparent owner. If the department
2629 finds that the proof of diligent search is satisfactory, it
2630 shall give notice as provided in s. 717.118 and accept custody
2631 of the property.
2632 (13)(9) Upon written request by any entity or person
2633 required to file a report, stating such entity's or person's
2634 justification for such action, the department may place that
2635 entity or person in an inactive status as an abandoned unclaimed
2636 property "holder."
2637 (14)(10)(a) This section does not apply to the abandoned
2638 unclaimed patronage refunds as provided for by contract or
2639 through bylaw provisions of entities organized under chapter 425
2640 or that are exempt from ad valorem taxation pursuant to s.
2641 196.2002.
2642 (b) This section does not apply to intangible property
2643 held, issued, or owing by a business association subject to the
2644 jurisdiction of the United States Surface Transportation Board
2645 or its successor federal agency if the apparent owner of such
2646 intangible property is a business association. The holder of
2647 such property does not have any obligation to report, to pay, or
2648 to deliver such property to the department.
2649 (c) This section does not apply to credit balances,
2650 overpayments, refunds, or outstanding checks owed by a health
2651 care provider to a managed care payor with whom the health care
2652 provider has a managed care contract, provided that the credit
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

2653 balances, overpayments, refunds, or outstanding checks become
2654 due and owing pursuant to the managed care contract.
2655 (15)(11)(a) As used in this subsection, the term "property
2656 identifier" means the descriptor used by the holder to identify
2657 the abandoned unclaimed property.
2658 (b) Social security numbers and property identifiers
2659 contained in reports required under this section, held by the
2660 department, are confidential and exempt from s. 119.07(1) and s.
2661 24(a), Art. I of the State Constitution.
2662 (c) This exemption applies to social security numbers and
2663 property identifiers held by the department before, on, or after
2664 the effective date of this exemption.
2665 Section 57. Section 717.118, Florida Statutes, is amended
2666 to read:
2667 717.118 Notification of apparent owners of abandoned
2668 unclaimed property.—
2669 (1) It is specifically recognized that the state has an
2670 obligation to make an effort to notify apparent owners in a
2671 cost-effective manner that their abandoned property has been
2672 reported and remitted to the department of unclaimed property in
2673 a cost-effective manner. In order to provide all the citizens of
2674 this state an effective and efficient program for the recovery
2675 of abandoned personal unclaimed property, the department shall
2676 use cost-effective means to make at least one active attempt to
2677 notify apparent owners of abandoned unclaimed property accounts
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Amendment No.

2678 valued at $50 or more, abandoned tangible property, and
2679 abandoned shares of stock for which more than $250 with a
2680 reported address or taxpayer identification number is available.
2681 Such active attempt to notify apparent owners shall include any
2682 attempt by the department to directly contact the apparent
2683 owner. Other means of notification, such as publication of the
2684 names of apparent owners in the newspaper, on television, on the
2685 Internet, or through other promotional efforts and items in
2686 which the department does not directly attempt to contact the
2687 apparent owner are expressly declared to be passive attempts.
2688 Nothing in This subsection does not preclude precludes other
2689 agencies or entities of state government from notifying owners
2690 of the existence of abandoned unclaimed property or attempting
2691 to notify apparent owners of abandoned unclaimed property.
2692 (2) Notification provided directly to individual apparent
2693 owners shall contain consist of a description of the abandoned
2694 property and information regarding recovery of the unclaimed
2695 property from the department. The form and content of the
2696 department's notice shall be tailored to the type of property
2697 reported and shall include any information necessary to
2698 reasonably inform the apparent owner of the consequences of
2699 failure to claim the property, including potential sale or
2700 disposition under s. 717.122.
2701 (3) The department shall maintain a publicly accessible,
2702 electronically searchable website that includes the names of
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Amendment No.

2703 apparent owners of abandoned property reported to the department
2704 and instructions for filing a claim. The website must list
2705 property valued at $10 or more and provide instructions for
2706 filing a claim. Abandoned property valued at less than $10
2707 remains recoverable from the department in accordance with this
2708 chapter.
2709 (4) This section is not applicable to abandoned sums
2710 payable on traveler's checks, money orders, and other written
2711 instruments presumed unclaimed under s. 717.104, or any other
2712 abandoned property reported without the necessary identifying
2713 information to establish ownership.
2714 Section 58. Section 717.119, Florida Statutes, is amended
2715 to read:
2716 717.119 Payment or delivery of abandoned unclaimed
2717 property.—
2718 (1) Every person who is required to file a report under s.
2719 717.117 shall simultaneously pay or deliver to the department
2720 all abandoned unclaimed property required to be reported. Such
2721 payment or delivery shall accompany the report as required in
2722 this chapter for the preceding calendar year.
2723 (2) Payment of abandoned unclaimed funds may be made to
2724 the department by electronic funds transfer.
2725 (3) If the apparent owner establishes the right to receive
2726 the abandoned unclaimed property to the satisfaction of the
2727 holder before the property has been delivered to the department
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Amendment No.

2728 or it appears that for some other reason the presumption that
2729 the property was erroneously classified as abandoned is
2730 unclaimed is erroneous, the holder need not pay or deliver the
2731 property to the department. In lieu of delivery, the holder
2732 shall file a verified written explanation of the proof of claim
2733 or of the error in classification of the presumption that the
2734 property as abandoned was unclaimed.
2735 (4) All virtual currency reported under this chapter on
2736 the annual report filing required in s. 717.117 shall be
2737 remitted to the department with the report. The holder shall
2738 liquidate the virtual currency and remit the proceeds to the
2739 department. The liquidation must occur within 30 days before the
2740 filing of the report. Upon delivery of the virtual currency
2741 proceeds to the department, the holder is relieved of all
2742 liability of every kind in accordance with the provisions of s.
2743 717.1201 to every person for any losses or damages resulting to
2744 the person by the delivery to the department of the virtual
2745 currency proceeds.
2746 (5) All stock or other intangible ownership interest
2747 reported under this chapter on the annual report filing required
2748 in s. 717.117 shall be remitted to the department with the
2749 report. Upon delivery of the stock or other intangible ownership
2750 interest to the department, the holder and any transfer agent,
2751 registrar, or other person acting for or on behalf of a holder
2752 is relieved of all liability of every kind in accordance with
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Amendment No.

2753 the provisions of s. 717.1201 to every person for any losses or
2754 damages resulting to the person by the delivery to the
2755 department of the stock or other intangible ownership interest.
2756 (6) All intangible and tangible property held in a safe-
2757 deposit box or any other safekeeping repository reported under
2758 s. 717.117 shall not be delivered to the department until 120
2759 days after the report due date. The delivery of the property,
2760 through the United States mail or any other carrier, shall be
2761 insured by the holder at an amount equal to the estimated value
2762 of the property. Each package shall be clearly marked on the
2763 outside "Deliver Unopened." A holder's safe-deposit box contents
2764 shall be delivered to the department in a single shipment. In
2765 lieu of a single shipment, holders may provide the department
2766 with a single detailed shipping schedule that includes package
2767 tracking information for all packages being sent pursuant to
2768 this section.
2769 (a) Holders may remit the value of cash and coins found in
2770 abandoned unclaimed safe-deposit boxes to the department by
2771 cashier's check or by electronic funds transfer, unless the cash
2772 or coins have a value above face value. The department shall
2773 identify by rule those cash and coin items having a numismatic
2774 value. Cash and coin items identified as having a numismatic
2775 value shall be remitted to the department in their original
2776 form.

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Amendment No.

2777 (b) Any firearm or ammunition found in an abandoned
2778 unclaimed safe-deposit box or any other safekeeping repository
2779 shall be delivered by the holder to a law enforcement agency for
2780 property handling or disposal pursuant to s. 705.103(2)(b). If
2781 the firearm is sold by the law enforcement agency, with the
2782 balance of the proceeds shall be deposited into the State School
2783 Fund if the firearm is sold. However, The department is
2784 authorized to make a reasonable attempt to ascertain the
2785 historical value to collectors of any firearm that has been
2786 delivered to the department. Any firearm appearing to have
2787 historical value to collectors may be sold by the department
2788 pursuant to s. 717.122 to a person having a federal firearms
2789 license. Any firearm which is not sold pursuant to s. 717.122
2790 shall be delivered by the department to a law enforcement agency
2791 in this state for proper handling or disposal. In accordance
2792 with pursuant to s. 705.103(2)(b), if the firearm is sold by the
2793 law enforcement agency, with the balance of the proceeds shall
2794 be deposited into the State School Fund if the firearm is sold.
2795 The department shall not be administratively, civilly, or
2796 criminally liable for any firearm delivered by the department to
2797 a law enforcement agency in this state for disposal.
2798 (c) If such property is not paid or delivered to the
2799 department on or before the applicable payment or delivery date,
2800 the holder shall pay to the department a penalty for each safe-
2801 deposit box shipment received late. The penalty shall be $100
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Amendment No.

2802 for a safe-deposit box shipment container that is late 30 days
2803 or less. Thereafter, the penalty shall be $500 for a safe-
2804 deposit box shipment container that is late for each additional
2805 successive 30-day period. The penalty assessed against a holder
2806 for a late safe-deposit box shipment container shall not exceed
2807 $4,000 annually. The penalty shall be remitted to the department
2808 within 30 days after the date of the notification to the holder
2809 that the penalty is due and owing.
2810 (d) The department may waive any penalty due with
2811 appropriate justification, as provided by rule.
2812 (e) If a will or trust instrument is included among the
2813 contents of an abandoned a safe-deposit box or other safekeeping
2814 repository delivered to the department, the department must
2815 provide a copy of the will, trust, and any codicils or
2816 amendments to such will or trust instrument, upon request, to
2817 anyone who provides the department with a certified copy of the
2818 death certificate or another government-certified record
2819 evidencing the death evidence of the death of the testator or
2820 settlor.
2821 (7) Any holder may request an extension in writing of up
2822 to 60 days for the delivery of property if extenuating
2823 circumstances exist for the late delivery of the property. Any
2824 such extension the department may grant shall be in writing.
2825 (8) A holder may not assign or otherwise transfer its
2826 obligation to report, pay, or deliver property or to comply with
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Amendment No.

2827 the provisions of this chapter, other than to a parent,
2828 subsidiary, or affiliate of the holder.
2829 (a) Unless otherwise agreed to by the parties to a
2830 transaction, the holder's successor by merger or consolidation,
2831 or any person or entity that acquires all or substantially all
2832 of the holder's capital stock or assets, is responsible for
2833 fulfilling the holder's obligation to report, pay, or deliver
2834 property or to comply with the duties of this chapter regarding
2835 the transfer of property owed to the holder's successor and
2836 being held for an owner resulting from the merger,
2837 consolidation, or acquisition.
2838 (b) This subsection does not prohibit a holder from
2839 contracting with a third party for the reporting of abandoned
2840 unclaimed property, but the holder remains responsible to the
2841 department for the complete, accurate, and timely reporting of
2842 the property.
2843 Section 59. Subsections (1), (2), and (4) of section
2844 717.1201, Florida Statutes, are amended to read:
2845 717.1201 Custody by state; holder liability; reimbursement
2846 of holder paying claim; reclaiming for owner; payment of safe-
2847 deposit box or repository charges.—
2848 (1) Upon the good faith payment or delivery of abandoned
2849 unclaimed property to the department, the state assumes custody
2850 and responsibility for the safekeeping of the property. Any
2851 person who pays or delivers abandoned unclaimed property to the
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Amendment No.

2852 department in good faith is relieved of all liability to the
2853 extent of the value of the property paid or delivered for any
2854 claim then existing or which thereafter may arise or be made
2855 with in respect to the property.
2856 (a) A holder's substantial compliance with the due
2857 diligence provisions in s. 717.117 s. 717.117(6) and good faith
2858 payment or delivery of abandoned unclaimed property to the
2859 department releases the holder from liability that may arise
2860 from such payment or delivery, and such delivery and payment may
2861 be pleaded as a defense in any suit or action brought by reason
2862 of such delivery or payment. This section does not relieve a
2863 fiduciary of his or her duties under the Florida Trust Code or
2864 Florida Probate Code.
2865 (b) If the holder pays or delivers property to the
2866 department in good faith and thereafter any other person claims
2867 the property from the holder paying or delivering, or another
2868 state claims the money or property under that state's laws
2869 relating to escheat or abandoned or unclaimed property, the
2870 department, upon written notice of the claim, shall defend the
2871 holder against the claim and indemnify the holder against any
2872 liability on the claim, except that a holder may not be
2873 indemnified against penalties imposed by another state.
2874 (2) For the purposes of this section, a payment or
2875 delivery of abandoned unclaimed property is made in good faith
2876 if:
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Amendment No.

2877 (a) The payment or delivery was made in conjunction with
2878 an accurate and acceptable report.
2879 (b) The payment or delivery was made in a reasonable
2880 attempt to comply with this chapter and other applicable general
2881 law.
2882 (c) The holder had a reasonable basis for believing, based
2883 on the facts then known, that the property was abandoned
2884 unclaimed and subject to this chapter.
2885 (d) There is no showing that the records pursuant to which
2886 the delivery was made did not meet reasonable commercial
2887 standards of practice in the industry.
2888 (4) Any holder who has delivered property, including a
2889 certificate of any interest in a business association, other
2890 than money to the department pursuant to this chapter may
2891 reclaim the property if still in the possession of the
2892 department, without payment of any fee or other charges, upon
2893 filing proof that the person entitled to the property owner has
2894 claimed it the property from the holder.
2895 Section 60. Section 717.122, Florida Statutes, is amended
2896 to read:
2897 717.122 Public sale of abandoned unclaimed property.—
2898 (1) Except as provided in paragraph (2)(a), the department
2899 after the receipt of abandoned unclaimed property shall sell it
2900 to the highest bidder at public sale on the Internet or at a
2901 specified physical location wherever in the judgment of the
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Amendment No.

2902 department the most favorable market for the property involved
2903 exists. The department may decline the highest bid and reoffer
2904 the property for sale if in the judgment of the department the
2905 bid is insufficient. The department shall have the discretion to
2906 withhold from sale any abandoned unclaimed property that the
2907 department deems to be of benefit to the people of the state. If
2908 in the judgment of the department the probable cost of sale
2909 exceeds the value of the property, it need not be offered for
2910 sale and may be disposed of as the department determines
2911 appropriate. Any sale at a specified physical location held
2912 under this section must be preceded by a single publication of
2913 notice, at least 3 weeks in advance of sale, in a newspaper of
2914 general circulation in the county in which the property is to be
2915 sold. The department shall proportionately deduct auction fees,
2916 preparation costs, and expenses from the amount posted to an the
2917 owner's account for an abandoned when safe-deposit box when the
2918 contents are sold. No action or proceeding may be maintained
2919 against the department for or on account of any decision to
2920 decline the highest bid or withhold any abandoned unclaimed
2921 property from sale.
2922 (2)(a) Securities listed on an established stock exchange
2923 must be sold at prices prevailing at the time of sale on the
2924 exchange. Other securities may be sold over the counter at
2925 prices prevailing at the time of sale or by any other method the
2926 department deems advisable. The department may authorize the
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Amendment No.

2927 agent or broker acting on behalf of the department to deduct
2928 fees from the proceeds of these sales at a rate agreed upon in
2929 advance by the agent or broker and the department. The
2930 department shall reimburse owners' accounts for these brokerage
2931 fees from the State School Fund unless the securities are sold
2932 at the owner's request.
2933 (b) Unless the department deems it to be in the public
2934 interest to do otherwise, all abandoned securities presumed
2935 unclaimed and delivered to the department may be sold upon
2936 receipt. Any person making a claim pursuant to this chapter is
2937 entitled to receive either the securities delivered to the
2938 department by the holder, if they still remain in the hands of
2939 the department, or the proceeds received from sale, but no
2940 person has any claim under this chapter against the state, the
2941 holder, any transfer agent, any registrar, or any other person
2942 acting for or on behalf of a holder for any appreciation in the
2943 value of the property occurring after delivery by the holder to
2944 the state.
2945 (c) Certificates for abandoned unclaimed stock or other
2946 equity interest of business associations that cannot be canceled
2947 and registered in the department's name or that cannot be
2948 readily liquidated and converted into the currency of the United
2949 States may be sold for the value of the certificate, if any, in
2950 accordance with subsection (1) or may be destroyed in accordance
2951 with s. 717.128.
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Amendment No.

2952 (3) The purchaser of property at any sale conducted by the
2953 department pursuant to this chapter is entitled to ownership of
2954 the property purchased free from all claims of the owner or
2955 previous holder thereof and of all persons claiming through or
2956 under them. The department shall execute all documents necessary
2957 to complete the transfer of ownership.
2958 (4) The sale of abandoned unclaimed tangible personal
2959 property is not subject to tax under chapter 212 when such
2960 property is sold by or on behalf of the department pursuant to
2961 this section.
2962 Section 61. Section 717.123, Florida Statutes, is amended
2963 to read:
2964 717.123 Deposit of funds.—
2965 (1) All funds received under this chapter, including the
2966 proceeds from the sale of abandoned unclaimed property under s.
2967 717.122, shall immediately forthwith be deposited by the
2968 department in the Abandoned Unclaimed Property Trust Fund. The
2969 department shall retain, from funds received under this chapter,
2970 an amount not exceeding $15 million from which the department
2971 shall make prompt payment of claims allowed by the department
2972 and shall pay the costs incurred by the department in
2973 administering and enforcing this chapter. All remaining funds
2974 received by the department under this chapter shall be deposited
2975 by the department into the State School Fund.

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Amendment No.

2976 (2) The department shall record the name and last known
2977 address of each person appearing from the holder's reports to be
2978 entitled to the abandoned unclaimed property in the total
2979 amounts of $5 or greater; the name and the last known address of
2980 each insured person or annuitant; and with respect to each
2981 policy or contract listed in the report of an insurance
2982 corporation, its number, the name of the corporation, and the
2983 amount due.
2984 Section 62. Section 717.1235, Florida Statutes, is amended
2985 to read:
2986 717.1235 Dormant campaign accounts; report of unclaimed
2987 property.—Abandoned Unclaimed funds reported in the name of a
2988 campaign for public office, for any campaign that must dispose
2989 of surplus funds in its campaign account pursuant to s. 106.141,
2990 after being reported to the department, shall be deposited with
2991 the Chief Financial Officer to the credit of the State School
2992 Fund.
2993 Section 63. Section 717.124, Florida Statutes, is amended
2994 to read:
2995 717.124 Abandoned Unclaimed property claims.—
2996 (1) Any person, excluding another state, claiming an
2997 interest in any property paid or delivered to the department
2998 under this chapter may file with the department a claim on a
2999 form prescribed by the department and verified by the claimant
3000 or the claimant claimant's representative. The claimant's
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Amendment No.

3001 representative must be an attorney licensed to practice law in
3002 this state, a licensed Florida-certified public accountant, or a
3003 private investigator licensed under chapter 493. The claimant
3004 claimant's representative must be registered with the department
3005 under this chapter. The claimant, or the claimant claimant's
3006 representative, shall provide the department with a legible copy
3007 of a valid driver license of the claimant at the time the
3008 original claim form is filed. If the claimant has not been
3009 issued a valid driver license at the time the original claim
3010 form is filed, the department shall be provided with a legible
3011 copy of a photographic identification of the claimant issued by
3012 the United States, a state or territory of the United States, a
3013 foreign nation, or a political subdivision or agency thereof or
3014 other evidence deemed acceptable by the department by rule. In
3015 lieu of photographic identification, a notarized sworn statement
3016 by the claimant may be provided which affirms the claimant's
3017 identity and states the claimant's full name and address. The
3018 claimant must produce to the notary photographic identification
3019 of the claimant issued by the United States, a state or
3020 territory of the United States, a foreign nation, or a political
3021 subdivision or agency thereof or other evidence deemed
3022 acceptable by the department by rule. The notary shall indicate
3023 the notary's full address on the notarized sworn statement. Any
3024 claim filed without the required identification or the sworn
3025 statement with the original claim form and the original
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

3026 Abandoned Unclaimed Property Recovery Agreement or Abandoned
3027 Unclaimed Property Purchase Agreement, if applicable, is void.
3028 (a) Within 90 days after receipt of a claim, the
3029 department may return any claim that provides for the receipt of
3030 fees and costs greater than that permitted under this chapter or
3031 that contains any apparent errors or omissions. The department
3032 may also request that the claimant or the claimant claimant's
3033 representative provide additional information. The department
3034 shall retain a copy or electronic image of the claim.
3035 (b) A claim is withdrawn if: considered to have been
3036 withdrawn by a claimant or the claimant's representative if the
3037 department does not receive a response to its request for
3038 additional information within 60 days after the notification of
3039 any apparent errors or omissions.
3040 1. The Department receives a written acknowledgement from
3041 the claimant confirming withdrawal of the claim;
3042 2. The Department receives a written notice to withdraw the
3043 claim from a claimant representative that is accompanied by
3044 written authorization from the claimant expressly approving
3045 withdrawal of the claim. The authorization must state the reason
3046 for the withdrawal, contain an acknowledgement that the claimant
3047 understands that withdrawal will affect the processing of that
3048 claim and may affect the processing of other pending claims, and
3049 must be signed by the claimant. The claimant’s authorization

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Amendment No.

3050 must be submitted concurrently with, or as part of, the
3051 withdrawal notice; or
3052 3. The claimant or the claimant’s representative fails to
3053 respond to the Department’s written request for additional
3054 information within 60 days of the Department providing notice of
3055 any apparent errors or omissions.
3056 (c) Within 90 days after receipt of the claim, or the
3057 response of the claimant or the claimant claimant's
3058 representative to the department's request for additional
3059 information, whichever is later, the department shall determine
3060 each claim. Such determination shall contain a notice of rights
3061 provided by ss. 120.569 and 120.57. The 90-day period shall be
3062 extended by 60 days if the department has good cause to need
3063 additional time or if the abandoned unclaimed property:
3064 1. Is owned by a person who has been a debtor in
3065 bankruptcy;
3066 2. Was reported with an address outside of the United
3067 States;
3068 3. Is being claimed by a person outside of the United
3069 States; or
3070 4. Contains documents filed in support of the claim that
3071 are not in the English language and have not been accompanied by
3072 an English language translation.
3073 (2) A claim for a cashier's check or a stock certificate
3074 without the original instrument may require an indemnity bond
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

3075 equal to the value of the claim to be provided prior to issue of
3076 the stock or payment of the claim by the department.
3077 (3) The department may require an affidavit swearing to
3078 the authenticity of the claim, lack of documentation, and an
3079 agreement to allow the department to provide the name and
3080 address of the claimant to subsequent claimants coming forward
3081 with substantiated proof to claim the account. This shall apply
3082 to claims equal to or less than $250. The exclusive remedy of a
3083 subsequent claimant to the property shall be against the person
3084 who received the property from the department.
3085 (4)(a) Except as otherwise provided in this chapter, if a
3086 claim is determined in favor of the claimant, the department
3087 shall deliver or pay over to the claimant the property or the
3088 amount the department actually received or the proceeds if it
3089 has been sold by the department, together with any additional
3090 amount required by s. 717.121.
3091 (b) If a claimant an owner authorizes a claimant
3092 representative an attorney licensed to practice law in this
3093 state, a Florida-certified public accountant, or a private
3094 investigator licensed under chapter 493, and registered with the
3095 department under this chapter, to claim the abandoned unclaimed
3096 property on the claimant's owner's behalf, the department is
3097 authorized to make distribution of the property or money in
3098 accordance with the Abandoned Unclaimed Property Recovery
3099 Agreement or Abandoned Unclaimed Property Purchase Agreement
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Amendment No.

3100 under s. 717.135. The original Abandoned Unclaimed Property
3101 Recovery Agreement or Abandoned Unclaimed Property Purchase
3102 Agreement must be executed by the claimant or seller and must be
3103 filed with the department.
3104 (c)1. Payments of approved claims for unclaimed cash
3105 accounts must be made to the owner after deducting any fees and
3106 costs authorized by the claimant under an Abandoned Unclaimed
3107 Property Recovery Agreement. The contents of a safe-deposit box
3108 or shares of securities must be delivered directly to the
3109 claimant.
3110 2. Payments of fees and costs authorized under an
3111 Abandoned Unclaimed Property Recovery Agreement for approved
3112 claims must be made or issued to the law firm of the designated
3113 attorney licensed to practice law in this state, the public
3114 accountancy firm of the licensed Florida-certified public
3115 accountant, or the designated employing private investigative
3116 agency licensed by this state. Such payments shall be made by
3117 electronic funds transfer and may be made on such periodic
3118 schedule as the department may define by rule, provided the
3119 payment intervals do not exceed 31 days. Payment made to an
3120 attorney licensed in this state, a Florida-certified public
3121 accountant, or a private investigator licensed under chapter
3122 493, operating individually or as a sole practitioner, must be
3123 to the attorney, certified public accountant, or private
3124 investigator.
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Amendment No.

3125 (5) The department shall not be administratively, civilly,
3126 or criminally liable for any property or funds distributed
3127 pursuant to this section, provided such distribution is made in
3128 good faith.
3129 (6) This section does not supersede the licensing
3130 requirements of chapter 493.
3131 (7) The department may allow an apparent owner to
3132 electronically submit a claim for abandoned unclaimed property
3133 to the department. If a claim is submitted electronically for
3134 $2,000 or less, the department may use a method of identity
3135 verification other than a copy of a valid driver license, other
3136 government-issued photographic identification, or a sworn
3137 notarized statement. The department may adopt rules to implement
3138 this subsection.
3139 (8) Notwithstanding any other provision of this chapter,
3140 the department may develop and implement an identification
3141 verification and disbursement process by which an account valued
3142 at $2,000 or less, after being received by the department and
3143 added to the abandoned unclaimed property database, may be
3144 disbursed to an apparent owner after the department has verified
3145 that the apparent owner is living and that the apparent owner's
3146 current address is correct. The department shall include with
3147 the payment a notification and explanation of the dollar amount,
3148 the source, and the property type of each account included in

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Amendment No.

3149 the disbursement. The department shall adopt rules to implement
3150 this subsection.
3151 (9)(a) Notwithstanding any other provision of this
3152 chapter, the department may develop and implement a verification
3153 and disbursement process by which an account, after being
3154 received by the department and added to the abandoned unclaimed
3155 property database, for which the apparent owner entity is:
3156 1. A state agency in this state or a subdivision or
3157 successor agency thereof;
3158 2. A county government in this state or a subdivision
3159 thereof;
3160 3. A public school district in this state or a subdivision
3161 thereof;
3162 4. A municipality in this state or a subdivision thereof;
3163 or
3164 5. A special taxing district or authority in this state,
3165
3166 may be disbursed to the apparent owner entity or successor
3167 entity. The department shall include with the payment a
3168 notification and explanation of the dollar amount, the source,
3169 and the property type of each account included in the
3170 disbursement.
3171 (b) The department may adopt rules to implement this
3172 subsection.

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Amendment No.

3173 (10) Notwithstanding any other provision of this chapter,
3174 the department may develop a process by which a claimant
3175 claimant's representative or a buyer of unclaimed property may
3176 electronically submit to the department an electronic image of a
3177 completed claim and claims-related documents under this chapter,
3178 including an Abandoned Unclaimed Property Recovery Agreement or
3179 Abandoned Unclaimed Property Purchase Agreement that has been
3180 signed and dated by a claimant or seller under s. 717.135, after
3181 the claimant claimant's representative or the buyer of unclaimed
3182 property receives the original documents provided by the
3183 claimant or the seller for any claim. Each claim filed by a
3184 claimant claimant's representative or a buyer of unclaimed
3185 property must include a statement by the claimant claimant's
3186 representative or the buyer of unclaimed property attesting that
3187 all documents are true copies of the original documents and that
3188 all original documents are physically in the possession of the
3189 claimant claimant's representative or the buyer of unclaimed
3190 property. All original documents must be kept in the original
3191 form, by claim number, under the secure control of the claimant
3192 claimant's representative or the buyer of unclaimed property and
3193 must be available for inspection by the department in accordance
3194 with s. 717.1315. The department may adopt rules to implement
3195 this subsection.
3196 (11) This section applies to all abandoned unclaimed
3197 property reported and remitted to the Chief Financial Officer,
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Amendment No.

3198 including, but not limited to, property reported pursuant to ss.
3199 45.032, 732.107, 733.816, and 744.534.
3200 Section 64. Section 717.12403, Florida Statutes, is
3201 amended to read:
3202 717.12403 Abandoned Unclaimed demand, savings, or checking
3203 account in a financial institution held in the name of more than
3204 one person.—
3205 (1)(a) If an abandoned unclaimed demand, savings, or
3206 checking account in a financial institution is reported as an
3207 "and" account in the name of two or more persons who are not
3208 beneficiaries, it is presumed that each person must claim the
3209 account in order for the claim to be approved by the department.
3210 This presumption may be rebutted by showing that entitlement to
3211 the account has been transferred to another person or by clear
3212 and convincing evidence demonstrating that the account should
3213 have been reported by the financial institution as an "or"
3214 account.
3215 (b) If an abandoned unclaimed demand, savings, or checking
3216 account in a financial institution is reported as an "and"
3217 account and one of the persons on the account is deceased, it is
3218 presumed that the account is a survivorship account. This
3219 presumption may be rebutted by showing that entitlement to the
3220 account has been transferred to another person or by clear and
3221 convincing evidence demonstrating that the account is not a
3222 survivorship account.
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Amendment No.

3223 (2) If an abandoned unclaimed demand, savings, or checking
3224 account in a financial institution is reported as an "or"
3225 account in the name of two or more persons who are not
3226 beneficiaries, it is presumed that either person listed on the
3227 account may claim the entire amount held in the account. This
3228 presumption may be rebutted by showing that entitlement to the
3229 account has been transferred to another person or by clear and
3230 convincing evidence demonstrating that the account should have
3231 been reported by the financial institution as an "and" account.
3232 (3) If an abandoned unclaimed demand, savings, or checking
3233 account in a financial institution is reported in the name of
3234 two or more persons who are not beneficiaries without
3235 identifying whether the account is an "and" account or an "or"
3236 account, it is presumed that the account is an "or" account.
3237 This presumption may be rebutted by showing that entitlement to
3238 the account has been transferred to another person or by clear
3239 and convincing evidence demonstrating that the account should
3240 have been reported by the financial institution as an "and"
3241 account.
3242 (4) The department shall be deemed to have made a
3243 distribution in good faith if the department remits funds
3244 consistent with this section.
3245 Section 65. Subsection (2) of section 717.12404, Florida
3246 Statutes, is amended to read:
3247 717.12404 Claims on behalf of a business entity or trust.—
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Amendment No.

3248 (2) Claims on behalf of an active or a dissolved
3249 corporation, a business entity other than an active corporation,
3250 or a trust must include a legible copy of a valid driver license
3251 of the person acting on behalf of the dissolved corporation,
3252 business entity other than an active corporation, or trust. If
3253 the person has not been issued a valid driver license, the
3254 department shall be provided with a legible copy of a
3255 photographic identification of the person issued by the United
3256 States, a foreign nation, or a political subdivision or agency
3257 thereof. In lieu of photographic identification, a notarized
3258 sworn statement by the person may be provided which affirms the
3259 person's identity and states the person's full name and address.
3260 The person must produce his or her photographic identification
3261 issued by the United States, a state or territory of the United
3262 States, a foreign nation, or a political subdivision or agency
3263 thereof or other evidence deemed acceptable by the department by
3264 rule. The notary shall indicate the notary's full address on the
3265 notarized sworn statement. Any claim filed without the required
3266 identification or the sworn statement with the original claim
3267 form and the original Abandoned Unclaimed Property Recovery
3268 Agreement or Abandoned Unclaimed Property Purchase Agreement, if
3269 applicable, is void.
3270 Section 66. Section 717.12405, Florida Statutes, is
3271 amended to read:

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Amendment No.

3272 717.12405 Claims by estates.—An estate or any person
3273 representing an estate or acting on behalf of an estate may
3274 claim abandoned unclaimed property only after the heir or
3275 legatee of the decedent entitled to the property has been
3276 located. Any estate, or any person representing an estate or
3277 acting on behalf of an estate, that receives abandoned unclaimed
3278 property before the heir or legatee of the decedent entitled to
3279 the property has been located, is personally liable for the
3280 abandoned unclaimed property and must immediately return the
3281 full amount of the abandoned unclaimed property or the value
3282 thereof to the department in accordance with s. 717.1341.
3283 Section 67. Section 717.12406, Florida Statutes, is
3284 amended to read:
3285 717.12406 Joint ownership of abandoned unclaimed
3286 securities or dividends.—For the purpose of determining joint
3287 ownership of abandoned unclaimed securities or dividends, the
3288 term:
3289 (1) "TEN COM" means tenants in common.
3290 (2) "TEN ENT" means tenants by the entireties.
3291 (3) "JT TEN" or "JT" means joint tenants with the right of
3292 survivorship and not as tenants in common.
3293 (4) "And" means tenants in common with each person
3294 entitled to an equal pro rata share.
3295 (5) "Or" means that each person listed on the account is
3296 entitled to all of the funds.
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Amendment No.

3297 Section 68. Section 717.1241, Florida Statutes, is amended
3298 to read:
3299 717.1241 Conflicting claims.—
3300 (1) For purposes of this section, the term "conflicting
3301 claim" means two or more claims received by the department for
3302 the same abandoned property account or accounts in which two or
3303 more claimants appear to be equally entitled to the property.
3304 The term also includes circumstances in which the same claimant
3305 has more than one claim pending for the same property, including
3306 when the claimant is represented by more than one claimant
3307 representative or submits both a personal claim and a claim
3308 through a representative.
3309 (2) When conflicting claims have been received by the
3310 department for the same abandoned unclaimed property account or
3311 accounts, the property shall be remitted in accordance with the
3312 claim filed by the person as follows, notwithstanding the
3313 withdrawal of a claim:
3314 (a) To the person submitting the first claim received by
3315 the Division of Unclaimed Property of the department that is
3316 complete or made complete.
3317 (b) If a claimant's claim and a claimant claimant's
3318 representative's claim for the recovery of property are received
3319 by the Division of Unclaimed Property of the department on the
3320 same day and both claims are complete, to the claimant.

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Amendment No.

3321 (c) If a buyer's claim or a purchasing claimant
3322 representative's claim and a claimant's claim or a claimant
3323 claimant's representative's claim for the recovery of property
3324 are received by the Division of Unclaimed Property of the
3325 department on the same day and the claims are complete, to the
3326 buyer.
3327 (d) As between two or more claimant representatives'
3328 claimant's representative's claims received by the Division of
3329 Unclaimed Property of the department that are complete or made
3330 complete on the same day, to the claimant claimant's
3331 representative who has agreed to receive the lowest fee. If the
3332 two or more claimant claimant's representatives whose claims
3333 received by the Division of Unclaimed Property of the department
3334 were complete or made complete on the same day are charging the
3335 same lowest fee, the fee shall be divided equally between the
3336 claimant claimant's representatives.
3337 (e) If more than one buyer's claim received by the
3338 Division of Unclaimed Property of the department is complete or
3339 made complete on the same day, the department shall remit the
3340 abandoned unclaimed property to the buyer who paid the highest
3341 amount to the seller. If the buyers paid the same amount to the
3342 seller, the department shall remit the abandoned unclaimed
3343 property to the buyers divided in equal amounts.
3344 (3)(2) The purpose of this section is solely to provide
3345 guidance to the department regarding to whom it should remit the
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Amendment No.

3346 abandoned unclaimed property and is not intended to extinguish
3347 or affect any private cause of action that any person may have
3348 against another person for breach of contract or other statutory
3349 or common-law remedy. A buyer's sole remedy, if any, shall be
3350 against the claimant claimant's representative or the seller, or
3351 both. A claimant claimant's representative's sole remedy, if
3352 any, shall be against the buyer or the seller, or both. A
3353 claimant's or seller's sole remedy, if any, shall be against the
3354 buyer or the claimant claimant's representative, or both.
3355 Nothing in this section forecloses the right of a person to
3356 challenge the department's determination of completeness in a
3357 proceeding under ss. 120.569 and 120.57.
3358 (4)(3) A claim is complete when entitlement to the
3359 abandoned unclaimed property has been established.
3360 Section 69. Subsection (1) of section 717.1242, Florida
3361 Statutes, is amended to read:
3362 717.1242 Restatement of jurisdiction of the circuit court
3363 sitting in probate and the department.—
3364 (1) It is and has been the intent of the Legislature that,
3365 pursuant to s. 26.012(2)(b), circuit courts have jurisdiction of
3366 proceedings relating to the settlement of the estates of
3367 decedents and other jurisdiction usually pertaining to courts of
3368 probate. It is and has been the intent of the Legislature that,
3369 pursuant to this chapter, the department determines the merits
3370 of claims and entitlement to abandoned unclaimed property paid
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Amendment No.

3371 or delivered to the department under this chapter. Consistent
3372 with this legislative intent, any beneficiary, devisee, heir,
3373 personal representative, or other interested person, as those
3374 terms are defined in the Florida Probate Code and the Florida
3375 Trust Code, of an estate seeking to obtain property paid or
3376 delivered to the department under this chapter must file a claim
3377 with the department as provided in s. 717.124.
3378 Section 70. Subsections (1) and (4) of section 717.1243,
3379 Florida Statutes, are amended to read:
3380 717.1243 Small estate accounts.—
3381 (1) A claim for abandoned unclaimed property made by a
3382 beneficiary, as defined in s. 731.201, of a deceased owner need
3383 not be accompanied by an order of a probate court if the
3384 claimant files with the department an affidavit, signed by all
3385 beneficiaries, stating that all the beneficiaries have amicably
3386 agreed among themselves upon a division of the estate and that
3387 all funeral expenses, expenses of the last illness, and any
3388 other lawful claims have been paid, and any additional
3389 information reasonably necessary to make a determination of
3390 entitlement. If the owner died testate, the claim shall be
3391 accompanied by a copy of the will.
3392 (4) This section applies only if all of the abandoned
3393 unclaimed property held by the department on behalf of the owner
3394 has an aggregate value of $20,000 or less and no probate
3395 proceeding is pending.
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Amendment No.

3396 Section 71. Section 717.1244, Florida Statutes, is amended
3397 to read:
3398 717.1244 Determinations of abandoned unclaimed property
3399 claims.—In rendering a determination regarding the merits of an
3400 abandoned unclaimed property claim, the department shall rely on
3401 the applicable statutory, regulatory, common, and case law.
3402 Agency statements applying the statutory, regulatory, common,
3403 and case law to abandoned unclaimed property claims are not
3404 agency statements subject to s. 120.56(4).
3405 Section 72. Section 717.1245, Florida Statutes, is amended
3406 to read:
3407 717.1245 Garnishment of abandoned unclaimed property.—If
3408 any person files a petition for writ of garnishment seeking to
3409 obtain property paid or delivered to the department under this
3410 chapter, the petitioner shall be ordered to pay the department
3411 reasonable costs and attorney attorney's fees in any proceeding
3412 brought by the department to oppose, appeal, or collaterally
3413 attack the petition or writ if the department is the prevailing
3414 party in any such proceeding.
3415 Section 73. Subsection (1) of section 717.125, Florida
3416 Statutes, is amended to read:
3417 717.125 Claim of another state to recover property;
3418 procedure.—

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Amendment No.

3419 (1) At any time after property has been paid or delivered
3420 to the department under this chapter, another state may recover
3421 the property if:
3422 (a) The property was subjected to custody by this state
3423 because the records of the holder did not reflect the last known
3424 address of the apparent owner when the property was presumed
3425 abandoned unclaimed under this chapter, and the other state
3426 establishes that the last known address of the apparent owner or
3427 other person entitled to the property was in that state and
3428 under the laws of that state the property escheated to or was
3429 subject to a claim of abandonment or being unclaimed by that
3430 state;
3431 (b) The last known address of the apparent owner or other
3432 person entitled to the property, as reflected by the records of
3433 the holder, is in the other state and under the laws of that
3434 state the property has escheated to or become subject to a claim
3435 of abandonment by that state;
3436 (c) The records of the holder were erroneous in that they
3437 did not accurately reflect the actual owner of the property and
3438 the last known address of the actual owner is in the other state
3439 and under laws of that state the property escheated to or was
3440 subject to a claim of abandonment by that state;
3441 (d) The property was subject to custody by this state
3442 under s. 717.103(6) and under the laws of the state of domicile

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Amendment No.

3443 of the holder the property has escheated to or become subject to
3444 a claim of abandonment by that state; or
3445 (e) The property is the sum payable on a traveler's check,
3446 money order, or other similar instrument that was subjected to
3447 custody by this state under s. 717.104, and the instrument was
3448 purchased in the other state, and under the laws of that state
3449 the property escheated to or became subject to a claim of
3450 abandonment by that state.
3451 Section 74. Subsection (1) of section 717.126, Florida
3452 Statutes, is amended to read:
3453 717.126 Administrative hearing; burden of proof; proof of
3454 entitlement; venue.—
3455 (1) Any person aggrieved by a decision of the department
3456 may petition for a hearing as provided in ss. 120.569 and
3457 120.57. In any proceeding for determination of a claim to
3458 property paid or delivered to the department under this chapter,
3459 the burden shall be upon the claimant to establish entitlement
3460 to the property by a preponderance of evidence. Having the same
3461 name as that reported to the department is not sufficient, in
3462 the absence of other evidence, to prove entitlement to abandoned
3463 unclaimed property.
3464 Section 75. Section 717.1261, Florida Statutes, is amended
3465 to read:
3466 717.1261 Death certificates.—Any person who claims
3467 entitlement to abandoned unclaimed property by means of the
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Amendment No.

3468 death of one or more persons shall file a copy of the death
3469 certificate of the decedent or decedents that has been certified
3470 as being authentic by the issuing governmental agency.
3471 Section 76. Section 717.1262, Florida Statutes, is amended
3472 to read:
3473 717.1262 Court documents.—Any person who claims
3474 entitlement to abandoned unclaimed property by reason of a court
3475 document shall file a certified copy of the court document with
3476 the department. A certified copy of each pleading filed with the
3477 court to obtain a court document establishing entitlement, filed
3478 within 180 days before the date the claim form was signed by the
3479 claimant or claimant claimant's representative, must also be
3480 filed with the department.
3481 Section 77. Section 717.129, Florida Statutes, is amended
3482 to read:
3483 717.129 Periods of limitation.—
3484 (1) The expiration before or after July 1, 1987, of any
3485 period of time specified by contract, statute, or court order,
3486 during which a claim for money or property may be made or during
3487 which an action or proceeding may be commenced or enforced to
3488 obtain payment of a claim for money or to recover property, does
3489 not prevent the money or property from being presumed abandoned
3490 unclaimed or affect any duty to file a report or to pay or
3491 deliver abandoned unclaimed property to the department as
3492 required by this chapter.
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Amendment No.

3493 (2) The department may not commence an action or
3494 proceeding to enforce this chapter with respect to the
3495 reporting, payment, or delivery of property or any other duty of
3496 a holder under this chapter more than 10 years after the duty
3497 arose. The period of limitation established under this
3498 subsection is tolled by the earlier of the department's or audit
3499 agent's delivery of a notice that a holder is subject to an
3500 audit or examination under s. 717.1301 or the holder's written
3501 election to enter into an abandoned unclaimed property voluntary
3502 disclosure agreement.
3503 Section 78. Subsections (3) and (4) of section 717.1301,
3504 Florida Statutes, are amended to read:
3505 717.1301 Investigations; examinations; subpoenas.—
3506 (3) The department may authorize a compliance review of a
3507 report for a specified reporting year. The review must be
3508 limited to the contents of the report filed, as required by s.
3509 717.117 and subsection (2), and all supporting documents related
3510 to the reports. If the review results in a finding of a
3511 deficiency in abandoned unclaimed property due and payable to
3512 the department, the department shall notify the holder in
3513 writing of the amount of deficiency within 1 year after the
3514 authorization of the compliance review. If the holder fails to
3515 pay the deficiency within 90 days, the department may seek to
3516 enforce the assessment under subsection (1). The department is

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Amendment No.

3517 not required to conduct a review under this section before
3518 initiating an audit.
3519 (4) Notwithstanding any other provision of law, in a
3520 contract providing for the location or collection of abandoned
3521 unclaimed property, the department may authorize the contractor
3522 to deduct its fees and expenses for services provided under the
3523 contract from the abandoned unclaimed property that the
3524 contractor has recovered or collected under the contract. The
3525 department shall annually report to the Chief Financial Officer
3526 the total amount collected or recovered by each contractor
3527 during the previous fiscal year and the total fees and expenses
3528 deducted by each contractor.
3529 Section 79. Section 717.1315, Florida Statutes, is amended
3530 to read:
3531 717.1315 Retention of records by claimant claimant's
3532 representatives and buyers of abandoned unclaimed property.—
3533 (1) Every claimant claimant's representative and buyer of
3534 abandoned unclaimed property shall keep and use in his or her
3535 business such books, accounts, and records of the business
3536 conducted under this chapter to enable the department to
3537 determine whether such person is complying with this chapter and
3538 the rules adopted by the department under this chapter. Every
3539 claimant claimant's representative and buyer of abandoned
3540 unclaimed property shall preserve such books, accounts, and
3541 records, including every Abandoned Unclaimed Property Recovery
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Amendment No.

3542 Agreement or Abandoned Unclaimed Property Purchase Agreement
3543 between the owner and such claimant claimant's representative or
3544 buyer, for at least 3 years after the date of the initial
3545 agreement.
3546 (2) A claimant claimant's representative or buyer of
3547 abandoned unclaimed property, operating at two or more places of
3548 business in this state, may maintain the books, accounts, and
3549 records of all such offices at any one of such offices, or at
3550 any other office maintained by such claimant claimant's
3551 representative or buyer of abandoned unclaimed property, upon
3552 the filing of a written notice with the department designating
3553 in the written notice the office at which such records are
3554 maintained.
3555 (3) A claimant claimant's representative or buyer of
3556 abandoned unclaimed property shall make all books, accounts, and
3557 records available at a convenient location in this state upon
3558 request of the department.
3559 Section 80. Subsections (2) and (3) of section 717.132,
3560 Florida Statutes, are amended to read:
3561 717.132 Enforcement; cease and desist orders; fines.—
3562 (2) In addition to any other powers conferred upon it to
3563 enforce and administer the provisions of this chapter, the
3564 department may issue and serve upon a person an order to cease
3565 and desist and to take corrective action whenever the department
3566 finds that such person is violating, has violated, or is about
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Amendment No.

3567 to violate any provision of this chapter, any rule or order
3568 promulgated under this chapter, or any written agreement entered
3569 into with the department. For purposes of this subsection, the
3570 term "corrective action" includes refunding excessive charges,
3571 requiring a person to return abandoned unclaimed property,
3572 requiring a holder to remit abandoned unclaimed property, and
3573 requiring a holder to correct a report that contains errors or
3574 omissions. Any such order shall contain a notice of rights
3575 provided by ss. 120.569 and 120.57.
3576 (3) In addition to any other powers conferred upon it to
3577 enforce and administer the provisions of this chapter, the
3578 department or a court of competent jurisdiction may impose fines
3579 against any person found to have violated any provision of this
3580 chapter, any rule or order promulgated under this chapter, or
3581 any written agreement entered into with the department in an
3582 amount not to exceed $2,000 for each violation. All fines
3583 collected under this subsection shall be deposited as received
3584 in the Abandoned Unclaimed Property Trust Fund.
3585 Section 81. Paragraphs (c), (d), and (j) of subsection
3586 (1), subsections (2) and (3), paragraph (b) of subsection (4),
3587 and subsection (5) of section 717.1322, Florida Statutes, are
3588 amended to read:
3589 717.1322 Administrative and civil enforcement.—
3590 (1) The following acts are violations of this chapter and
3591 constitute grounds for an administrative enforcement action by
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Amendment No.

3592 the department in accordance with the requirements of chapter
3593 120 and for civil enforcement by the department in a court of
3594 competent jurisdiction:
3595 (c) Fraudulent Misrepresentation, circumvention, or
3596 concealment of any matter required to be stated or furnished to
3597 the department or to an owner or apparent owner under this
3598 chapter, regardless of reliance by or damage to the owner or
3599 apparent owner.
3600 (d) Willful Imposition of illegal or excessive charges in
3601 any abandoned unclaimed property transaction.
3602 (j) Requesting or receiving compensation for notifying a
3603 person of his or her abandoned unclaimed property or assisting
3604 another person in filing a claim for abandoned unclaimed
3605 property, unless the person is an attorney licensed to practice
3606 law in this state, a Florida-certified public accountant, or a
3607 private investigator licensed under chapter 493, or entering
3608 into, or making a solicitation to enter into, an agreement to
3609 file a claim for abandoned unclaimed property owned by another,
3610 unless such person is a registered claimant representative
3611 registered with the department under this chapter and an
3612 attorney licensed to practice law in this state in the regular
3613 practice of her or his profession, a Florida-certified public
3614 accountant who is acting within the scope of the practice of
3615 public accounting as defined in chapter 473, or a private
3616 investigator licensed under chapter 493. This paragraph does not
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3617 apply to a person who has been granted a durable power of
3618 attorney to convey and receive all of the real and personal
3619 property of the owner, is the court-appointed guardian of the
3620 owner, has been employed as an attorney or qualified
3621 representative to contest the department's denial of a claim, or
3622 has been employed as an attorney to probate the estate of the
3623 owner or an heir or legatee of the owner.
3624 (2) Upon a finding by the department that any person has
3625 committed any of the acts set forth in subsection (1), the
3626 department may enter an order doing any of the following:
3627 (a) Revoking for a minimum of 5 years or suspending for a
3628 maximum of 5 years a registration previously granted under this
3629 chapter during which time the registrant may not reapply for a
3630 registration under this chapter.;
3631 (b) Placing a claimant representative registrant or an
3632 applicant for a registration on probation for a period of time
3633 and subject to such conditions as the department may specify.;
3634 (c) Placing permanent restrictions or conditions upon
3635 issuance or maintenance of a registration under this chapter;
3636 (d) Issuing a reprimand.;
3637 (e) Imposing an administrative fine not to exceed $2,000
3638 for each such act.; or
3639 (f) Prohibiting any person from being a director, officer,
3640 agent, employee, or ultimate equitable owner of a 10 percent 10-

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3641 percent or greater interest in an employer of a claimant
3642 representative registrant.
3643 (3) A claimant claimant's representative is subject to
3644 civil enforcement and the disciplinary actions specified in
3645 subsection (2) for violations of subsection (1) by an agent or
3646 employee of the claimant representative's registrant's employer
3647 if the claimant claimant's representative knew or should have
3648 known that such agent or employee was violating any provision of
3649 this chapter.
3650 (4)
3651 (b) The disciplinary guidelines shall specify a meaningful
3652 range of designated penalties based upon the severity or
3653 repetition of specific offenses, or both. It is the legislative
3654 intent that minor violations be distinguished from more serious
3655 violations; that such guidelines consider the amount of the
3656 claim involved, the complexity of locating the owner, the steps
3657 taken to ensure the accuracy of the claim by the person filing
3658 the claim, the acts of commission and omission of the claimant
3659 ultimate owners in establishing themselves as rightful owners of
3660 the funds, the acts of commission or omission of the agent or
3661 employee of a claimant representative or its an employer in the
3662 filing of the claim, the actual knowledge of the agent,
3663 employee, employer, or owner in the filing of the claim, the
3664 departure, if any, by the agent or employee from the internal
3665 controls and procedures established by the claimant
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3666 representative or its employer with regard to the filing of a
3667 claim, the number of defective claims previously filed by the
3668 agent, employee, employer, or owner; that such guidelines
3669 provide reasonable and meaningful notice of likely penalties
3670 that may be imposed for proscribed conduct; and that such
3671 penalties be consistently applied by the department.
3672 (5) The department may seek any appropriate civil legal
3673 remedy available to it by filing a civil action in a court of
3674 competent jurisdiction against any person who has, directly or
3675 through a claimant claimant's representative, wrongfully
3676 submitted a claim as the ultimate owner of property and
3677 improperly received funds from the department in violation of
3678 this chapter.
3679 Section 82. Subsections (1) and (3) of section 717.133,
3680 Florida Statutes, are amended to read:
3681 717.133 Interstate agreements and cooperation; joint and
3682 reciprocal actions with other states.—
3683 (1) The department may enter into agreements with other
3684 states to exchange information needed to enable this or another
3685 state to audit or otherwise determine abandoned unclaimed
3686 property that it or another state may be entitled to subject to
3687 a claim of custody. The department may require the reporting of
3688 information needed to enable compliance with agreements made
3689 pursuant to this section and prescribe the form.

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3690 (3) At the request of another state, the department may
3691 bring an action in the name of the other state in any court of
3692 competent jurisdiction to enforce the abandoned unclaimed
3693 property laws of the other state against a holder in this state
3694 of property subject to escheat or a claim of abandonment by the
3695 other state, if the other state has agreed to pay expenses
3696 incurred in bringing the action.
3697 Section 83. Subsection (2) of section 717.1333, Florida
3698 Statutes, is amended to read:
3699 717.1333 Evidence; estimations; audit reports and
3700 worksheets, investigator reports and worksheets, other related
3701 documents.—
3702 (2) If the records of the holder that are available for
3703 the periods subject to this chapter are insufficient to permit
3704 the preparation of a report of the abandoned unclaimed property
3705 due and owing by a holder, or if the holder fails to provide
3706 records after being requested to do so, the amount due to the
3707 department may be reasonably estimated.
3708 Section 84. Paragraph (a) of subsection (1) and
3709 subsections (2) and (4) of section 717.1341, Florida Statutes,
3710 are amended to read:
3711 717.1341 Invalid claims, recovery of property, interest
3712 and penalties.—
3713 (1)(a) A No person may not shall receive abandoned
3714 unclaimed property that the person is not entitled to receive.
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3715 Any person who receives, or assists another person to receive,
3716 abandoned unclaimed property that the person is not entitled to
3717 receive is strictly, jointly, personally, and severally liable
3718 for the abandoned unclaimed property and shall immediately
3719 return the property, or the reasonable value of the property if
3720 the property has been damaged or disposed of, to the department
3721 plus interest at the rate set in accordance with s. 55.03(1).
3722 Assisting another person to receive abandoned unclaimed property
3723 includes executing a claim form on the person's behalf.
3724 (2) The department may maintain a civil or administrative
3725 action:
3726 (a) To recover abandoned unclaimed property that was paid
3727 or remitted to a person who was not entitled to the abandoned
3728 unclaimed property or to offset amounts owed to the department
3729 against amounts owed to an owner representative;
3730 (b) Against a person who assists another person in
3731 receiving, or attempting to receive, abandoned unclaimed
3732 property that the person is not entitled to receive; or
3733 (c) Against a person who attempts to receive abandoned
3734 unclaimed property that the person is not entitled to receive.
3735 (4) A No person may not shall knowingly file, knowingly
3736 conspire to file, or knowingly assist in filing, a claim for
3737 abandoned unclaimed property the person is not entitled to
3738 receive. Any person who violates this subsection regarding
3739 abandoned unclaimed property of an aggregate value:
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3740 (a) Greater than $50,000, commits is guilty of a felony of
3741 the first degree, punishable as provided in s. 775.082, s.
3742 775.083, or s. 775.084;
3743 (b) Greater than $10,000 up to $50,000, commits is guilty
3744 of a felony of the second degree, punishable as provided in s.
3745 775.082, s. 775.083, or s. 775.084;
3746 (c) Greater than $250 up to $10,000, commits is guilty of
3747 a felony of the third degree, punishable as provided in s.
3748 775.082, s. 775.083, or s. 775.084;
3749 (d) Greater than $50 up to $250, commits is guilty of a
3750 misdemeanor of the first degree, punishable as provided in s.
3751 775.082 or s. 775.083; or
3752 (e) Up to $50, commits is guilty of a misdemeanor of the
3753 second degree, punishable as provided in s. 775.082 or s.
3754 775.083.
3755 Section 85. Section 717.135, Florida Statutes, is amended
3756 to read:
3757 717.135 Recovery agreements and purchase agreements for
3758 claims filed by a claimant claimant's representative; fees and
3759 costs or total net gain.—
3760 (1) In order to protect the interests of owners of
3761 abandoned unclaimed property, the department shall adopt by rule
3762 a form entitled "Abandoned Unclaimed Property Recovery
3763 Agreement" and a form entitled "Abandoned Unclaimed Property
3764 Purchase Agreement."
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3765 (2) The Abandoned Unclaimed Property Recovery Agreement
3766 and the Abandoned Unclaimed Property Purchase Agreement must
3767 include and disclose all of the following:
3768 (a) The total dollar amount of abandoned unclaimed
3769 property accounts claimed or sold.
3770 (b) The total percentage of all authorized fees and costs
3771 to be paid to the claimant claimant's representative or the
3772 percentage of the value of the property to be paid as net gain
3773 to the purchasing claimant claimant's representative.
3774 (c) The total dollar amount to be deducted and received
3775 from the claimant as fees and costs by the claimant claimant's
3776 representative or the total net dollar amount to be received by
3777 the purchasing claimant claimant's representative.
3778 (d) The net dollar amount to be received by the claimant
3779 or the seller.
3780 (e) For each account claimed, the abandoned unclaimed
3781 property account number.
3782 (f) For the Abandoned Unclaimed Property Purchase
3783 Agreement, a statement that the amount of the purchase price
3784 will be remitted to the seller by the purchaser within 30 days
3785 after the execution of the agreement by the seller.
3786 (g) The name, address, e-mail address, phone number, and
3787 license number of the claimant claimant's representative.

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Amendment No.

3788 (h)1. The manual signature of the claimant or seller and
3789 the date signed, affixed on the agreement by the claimant or
3790 seller.
3791 2. Notwithstanding any other provision of this chapter to
3792 the contrary, the department may allow an apparent owner, who is
3793 also the claimant or seller, to sign the agreement
3794 electronically. All electronic signatures on the Abandoned
3795 Unclaimed Property Recovery Agreement and the Abandoned
3796 Unclaimed Property Purchase Agreement must be affixed on the
3797 agreement by the claimant or seller using the specific,
3798 exclusive eSignature product and protocol authorized by the
3799 department.
3800 (i) The social security number or taxpayer identification
3801 number of the claimant or seller, if a number has been issued to
3802 the claimant or seller.
3803 (j) The total fees and costs, or the total discount in the
3804 case of a purchase agreement, which may not exceed 30 percent of
3805 the claimed amount. In the case of a recovery agreement, if the
3806 total fees and costs exceed 30 percent, the fees and costs shall
3807 be reduced to 30 percent and the net balance shall be remitted
3808 directly by the department to the claimant. In the case of a
3809 purchase agreement, if the total net gain of the claimant
3810 claimant's representative exceeds 30 percent, the claim will be
3811 denied.

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3812 (3) For an Abandoned Unclaimed Property Purchase Agreement
3813 form, proof that the purchaser has made payment must be filed
3814 with the department along with the claim. If proof of payment is
3815 not provided, the claim is void.
3816 (4) A claimant claimant's representative must use the
3817 Abandoned Unclaimed Property Recovery Agreement or the Abandoned
3818 Unclaimed Property Purchase Agreement as the exclusive means of
3819 entering into an agreement or a contract with a claimant or
3820 seller to file a claim with the department.
3821 (5) Fees and costs may be owed or paid to, or received by,
3822 a claimant claimant's representative only after a filed claim
3823 has been approved and if the claimant's representative used an
3824 agreement authorized by this section.
3825 (6) A claimant claimant's representative may not use or
3826 distribute any other agreement of any type, conveyed by any
3827 method, with respect to the claimant or seller which relates,
3828 directly or indirectly, to abandoned unclaimed property accounts
3829 held by the department or the Chief Financial Officer other than
3830 the agreements authorized by this section. Any engagement,
3831 authorization, recovery, or fee agreement that is not authorized
3832 by this section is void. A claimant claimant's representative is
3833 subject to administrative and civil enforcement under s.
3834 717.1322 if he or she uses an agreement that is not authorized
3835 by this section and if the agreement is used to apply, directly
3836 or indirectly, to abandoned unclaimed property held by this
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3837 state. This subsection does not prohibit lawful nonagreement,
3838 noncontractual, or advertising communications between or among
3839 the parties.
3840 (7) The Abandoned Unclaimed Property Recovery Agreement
3841 may not contain language that makes the agreement irrevocable or
3842 that creates an assignment of any portion of abandoned unclaimed
3843 property held by the department.
3844 (8) When a claim is approved, the department may pay any
3845 additional account that is owned by the claimant but has not
3846 been claimed at the time of approval, provided that a subsequent
3847 claim has not been filed or is not pending for the claimant at
3848 the time of approval.
3849 (9) This section does not supersede s. 717.1241.
3850 (10) This section does not apply to the sale and purchase
3851 of Florida-held unclaimed property accounts through a bankruptcy
3852 estate representative or other person or entity authorized
3853 pursuant to Title XI of the United States Code or an order of a
3854 bankruptcy court to act on behalf or for the benefit of the
3855 debtor, its creditors, and its bankruptcy estate.
3856 Section 86. Section 717.1356, Florida Statutes, is created
3857 to read:
3858 717.1356 Purchase of abandoned property.—
3859 (1) Agreements for the purchase of abandoned property
3860 reported to the department shall be valid only if all of the
3861 following conditions are met:
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Amendment No.

3862 (a) The agreement is entitled "Florida Abandoned Property
3863 Purchase Agreement" and is in writing, in minimum 12-point type.
3864 (b) The agreement includes the social security number or
3865 taxpayer identification number of the seller, if a number has
3866 been issued to the seller; a valid e-mail address, mailing
3867 address, and telephone number for the seller; and is manually
3868 signed and dated by the seller with the signature notarized.
3869 (c) The agreement discloses with specificity the nature
3870 and value of the abandoned property, including the name of the
3871 apparent owner as shown by the records of the department, the
3872 name of the holder who remitted the property, the date of last
3873 contact, and the property category. With respect to the value of
3874 the abandoned property, the agreement must contain the
3875 following:
3876 1. The total dollar amount of all abandoned property to be
3877 sold.
3878 2. The total percentage of the value of the abandoned
3879 property to be paid as net gain to the purchaser.
3880 3. The total net dollar amount to be received by the
3881 purchaser.
3882 4. The net dollar amount to be received by the seller.
3883 (d) The agreement states the abandoned property account
3884 number for each abandoned property account sold.

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Amendment No.

3885 (e) The purchase price does not discount the total value
3886 of all abandoned property subject to the sale by more than 30
3887 percent.
3888 (f) The agreement states that the amount of the purchase
3889 price will be remitted to the seller by the purchaser within 30
3890 days after the execution of the agreement by the seller.
3891 (g) The agreement includes the name, address, e-mail
3892 address, and phone number of the purchaser.
3893 (h) The agreement states that the abandoned property is
3894 currently in the department's custody and that the seller can
3895 claim the property directly from the department on its
3896 electronically searchable website without being charged a fee.
3897 The agreement must provide the department's website address.
3898 (2) A seller may cancel a purchase agreement without
3899 penalty or obligation within 15 business days after the date on
3900 which the agreement was executed. The agreement must contain the
3901 following language in minimum 12-point type: "You may cancel
3902 this agreement for any reason without penalty or obligation to
3903 you within 15 days after the date of this agreement by providing
3904 notice to . . .(name of purchaser). . ., submitted in writing
3905 and sent by certified mail, return receipt requested, or other
3906 form of mailing that provides proof thereof, at the address or
3907 e-mail address specified in the agreement."
3908 (3) A copy of an executed Florida Abandoned Property
3909 Purchase Agreement must be filed with the purchaser's claim,
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Amendment No.

3910 along with proof that the purchaser has made payment in full,
3911 and all other required documentation. If proof of payment is not
3912 provided, the department may not approve the claim.
3913 (4) A purchase agreement under this section that discounts
3914 the value of abandoned property by more than the amount
3915 authorized in paragraph (1)(e) is enforceable only by the
3916 seller.
3917 (5) This section does not apply to asset purchase
3918 agreements involving the assets of a business association
3919 arising out of a bankruptcy proceeding under Title 11 of the
3920 United States Code or corporate dissolution or similar
3921 proceeding under applicable state law such as receiverships and
3922 assignments for the benefit of creditors.
3923 (6) This section does not apply to assent purchase
3924 agreements between an Asset Purchaser and sellers who comprise a
3925 large business association.
3926 (a) For the purposes of this subsection, a large business
3927 association is a business association or group of business
3928 associations that:
3929 1. generate $100 million or more in annual gross receipts
3930 or sales;
3931 2. employs 100 or more full time employees in the United
3932 States; or
3933 3. has equity securities publicly traded on an exchange
3934 regulated by the federal Securities and Exchange Commission.
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3935 (b) Claims filed by an Asset Purchaser under this
3936 subsection must include:
3937 1. a complete and unredacted copy of the asset purchase
3938 agreement or similar contract between the Asset Purchaser and
3939 the seller; and
3940 2. an attestation by the seller either in the asset
3941 purchase agreement or in a separate written affirmation from the
3942 owner that the owner (i) meets one or more of the above
3943 characteristics that qualify it as a large business association
3944 and (ii) is aware that it is selling unclaimed property that may
3945 be recovered from the administrator without paying a fee.
3946 (c) If the seller is a publicly traded entity, the Asset
3947 Purchaser may provide a copy, or a link to an online copy, of
3948 the most recent 10K filed with the Securities and Exchange
3949 Commission in lieu of the affirmation that the owner meets one
3950 or more of the characteristics that qualify as a large business
3951 association.
3952 (d) Nothing in this subsection limits the ability of the
3953 department to request or receive additional evidence sufficient
3954 to establish to the satisfaction of the department that the
3955 claimant is the owner of the property pursuant to this chapter.
3956 (e) The department may adopt rules to implement this
3957 subsection.

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Amendment No.

3958 (f)The requirements of this section shall apply only to
3959 claims filed based on asset purchase agreements execute on or
3960 after the effective date of this act.
3961 Section 87. Section 717.138, Florida Statutes, is amended
3962 to read:
3963 717.138 Rulemaking authority.—The department shall
3964 administer and provide for the enforcement of this chapter. The
3965 department has authority to adopt rules pursuant to ss.
3966 120.536(1) and 120.54 to implement the provisions of this
3967 chapter. The department may adopt rules to allow for electronic
3968 filing of fees, forms, and reports required by this chapter. The
3969 authority to adopt rules pursuant to this chapter applies to all
3970 abandoned unclaimed property reported and remitted to the Chief
3971 Financial Officer, including, but not limited to, property
3972 reported and remitted pursuant to ss. 45.032, 732.107, 733.816,
3973 and 744.534.
3974 Section 88. Section 717.1382, Florida Statutes, is amended
3975 to read:
3976 717.1382 United States savings bond; abandoned unclaimed
3977 property; escheatment; procedure.—
3978 (1) Notwithstanding any other provision of law, a United
3979 States savings bond in possession of the department or
3980 registered to a person with a last known address in the state,
3981 including a bond that is lost, stolen, or destroyed, is presumed
3982 abandoned and unclaimed 5 years after the bond reaches maturity
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Amendment No.

3983 and no longer earns interest and shall be reported and remitted
3984 to the department by the financial institution or other holder
3985 in accordance with ss. 717.117(5) and (11) ss. 717.117(1) and
3986 (5) and 717.119, if the department is not in possession of the
3987 bond.
3988 (2)(a) After a United States savings bond is abandoned and
3989 unclaimed in accordance with subsection (1), the department may
3990 commence a civil action in a court of competent jurisdiction in
3991 Leon County for a determination that the bond shall escheat to
3992 the state. Upon determination of escheatment, all property
3993 rights to the bond or proceeds from the bond, including all
3994 rights, powers, and privileges of survivorship of an owner, co-
3995 owner, or beneficiary, shall vest solely in the state.
3996 (b) Service of process by publication may be made on a
3997 party in a civil action pursuant to this section. A notice of
3998 action shall state the name of any known owner of the bond, the
3999 nature of the action or proceeding in short and simple terms,
4000 the name of the court in which the action or proceeding is
4001 instituted, and an abbreviated title of the case.
4002 (c) The notice of action shall require a person claiming
4003 an interest in the bond to file a written defense with the clerk
4004 of the court and serve a copy of the defense by the date fixed
4005 in the notice. The date must not be less than 28 or more than 60
4006 days after the first publication of the notice.

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4007 (d) The notice of action shall be published once a week
4008 for 4 consecutive weeks in a newspaper of general circulation
4009 published in Leon County. Proof of publication shall be placed
4010 in the court file.
4011 (e)1. If no person files a claim with the court for the
4012 bond and if the department has substantially complied with the
4013 provisions of this section, the court shall enter a default
4014 judgment that the bond, or proceeds from such bond, has
4015 escheated to the state.
4016 2. If a person files a claim for one or more bonds and,
4017 after notice and hearing, the court determines that the claimant
4018 is not entitled to the bonds claimed by such claimant, the court
4019 shall enter a judgment that such bonds, or proceeds from such
4020 bonds, have escheated to the state.
4021 3. If a person files a claim for one or more bonds and,
4022 after notice and hearing, the court determines that the claimant
4023 is entitled to the bonds claimed by such claimant, the court
4024 shall enter a judgment in favor of the claimant.
4025 (3) The department may redeem a United States savings bond
4026 escheated to the state pursuant to this section or, in the event
4027 that the department is not in possession of the bond, seek to
4028 obtain the proceeds from such bond. Proceeds received by the
4029 department shall be deposited in accordance with s. 717.123.
4030 Section 89. Section 717.139, Florida Statutes, is amended
4031 to read:
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4032 717.139 Uniformity of application and construction.—
4033 (1) The Legislature finds that laws governing abandoned
4034 property serve a vital public purpose by protecting the property
4035 rights of owners, facilitating the return abandoned property to
4036 its owners, preventing private escheatment, and ensuring that
4037 abandoned assets are preserved and safeguarded from waste or
4038 misuse. It is the public policy of the state to protect the
4039 interests of owners of abandoned unclaimed property. It is
4040 declared to be in the best interests of owners of unclaimed
4041 property that such owners receive the full amount of any
4042 unclaimed property without any fee.
4043 (2) This chapter shall be applied and construed as to
4044 effectuate its general purpose of protecting the interest of
4045 missing owners of abandoned property, while providing that the
4046 benefit of all unclaimed and abandoned property shall go to all
4047 the people of the state, and to make uniform the law with
4048 respect to the subject of this chapter among states enacting it.
4049 It is the intent of the Legislature that property reported under
4050 this chapter remains the property of the owner and that the
4051 State of Florida acts solely as a custodian, not as the owner,
4052 of such property. Title to abandoned property may not transfer
4053 to the state except as expressly provided by law and only after
4054 all reasonable efforts to identify and return the property to
4055 its rightful owner have been exhausted.

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Amendment No.

4056 Section 90. Section 717.1400, Florida Statutes, is amended
4057 to read:
4058 717.1400 Registration.—
4059 (1) In order to file claims as a claimant claimant's
4060 representative, receive a distribution of fees and costs for
4061 approved claims from the department, and obtain information
4062 regarding abandoned unclaimed property dollar amounts and
4063 numbers of reported shares of stock held by the department, an
4064 individual must meet all of the following requirements:
4065 (a) Be one of the following:
4066 1. A Florida-licensed private investigator holding a Class
4067 "C" individual license under chapter 493;
4068 2. A Florida-certified public account; or
4069 3. A Florida-licensed attorney.
4070 (b) Have obtained a certificate of registration from Must
4071 register with the department.
4072 (2) An application for registration as a claimant
4073 representative must be submitted in writing on a form prescribed
4074 by the department and must be accompanied by all of the
4075 following:
4076 (a) A legible color copy of the applicant's current driver
4077 license showing the full name and current address of such
4078 person. If a current driver license is not available, another
4079 form of photo identification must be provided which shows the
4080 full name and current address of such person.
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Amendment No.

4081 (b) If the applicant is a private investigator:
4082 1. on such form as the department prescribes by rule and
4083 must be verified by the applicant. To register with the
4084 department, a private investigator must provide:
4085 (a) A legible copy of the applicant's Class "A" business
4086 license under chapter 493 or that of the applicant's firm or
4087 employer which holds a Class "A" business license under chapter
4088 493; and.
4089 2.(b) A legible copy of the applicant's Class "C"
4090 individual license issued under chapter 493.
4091 (c) If the applicant is a certified public account, the
4092 applicant's Florida Board of Accountancy number.
4093 (d) If the applicant is a licensed attorney, the
4094 applicant's Florida Bar number.
4095 (e)(c) The business address, and telephone number, tax
4096 identification number, and state of domicile or incorporation of
4097 the applicant's private investigative firm or employer.
4098 (f)(d) The names of agents, or employees, or independent
4099 contractors, if any, who are designated or authorized to act on
4100 behalf of the applicant private investigator, together with a
4101 legible color copy of their photo identification issued by an
4102 agency of the United States, or a state, or a political
4103 subdivision thereof.
4104 (g) A statement that the applicant has not, during the 5-
4105 year period immediately preceding the submission of the
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4106 application, violated any part of the Florida Disposition of
4107 Abandoned Personal Property Act.
4108 (h) A statement that the applicant has not been convicted
4109 of, or plead guilty to, a felony or any offense involving moral
4110 turpitude; dishonesty; deceit; or breach of fiduciary duty,
4111 including theft, attempted theft, falsification, tampering with
4112 records, securing writings by deception, fraud, forgery, or
4113 perjury.
4114 (i)(e) Sufficient information to enable the department to
4115 disburse funds by electronic funds transfer.
4116 (j) The applicant's notarized signature immediately
4117 following an acknowledgment that any false or perjured statement
4118 subjects the applicant to criminal liability under the laws of
4119 this state
4120 (f) The tax identification number of the private
4121 investigator's firm or employer which holds a Class "A" business
4122 license under chapter 493.
4123 (2) In order to file claims as a claimant's
4124 representative, receive a distribution of fees and costs from
4125 the department, and obtain unclaimed property dollar amounts and
4126 numbers of reported shares of stock held by the department, a
4127 Florida-certified public accountant must register with the
4128 department on such form as the department prescribes by rule and
4129 must be verified by the applicant. To register with the
4130 department, a Florida-certified public accountant must provide:
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COMMITTEE/SUBCOMMITTEE AMENDMENT
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Amendment No.

4131 (a) The applicant's Florida Board of Accountancy number.
4132 (b) A legible copy of the applicant's current driver
4133 license showing the full name and current address of such
4134 person. If a current driver license is not available, another
4135 form of identification showing the full name and current address
4136 of such person or persons shall be filed with the department.
4137 (c) The business address and telephone number of the
4138 applicant's public accounting firm or employer.
4139 (d) The names of agents or employees, if any, who are
4140 designated to act on behalf of the Florida-certified public
4141 accountant, together with a legible copy of their photo
4142 identification issued by an agency of the United States, or a
4143 state, or a political subdivision thereof.
4144 (e) Sufficient information to enable the department to
4145 disburse funds by electronic funds transfer.
4146 (f) The tax identification number of the accountant's
4147 public accounting firm employer.
4148 (3) In order to file claims as a claimant's
4149 representative, receive a distribution of fees and costs from
4150 the department, and obtain unclaimed property dollar amounts and
4151 numbers of reported shares of stock held by the department, an
4152 attorney licensed to practice in this state must register with
4153 the department on such form as the department prescribes by rule
4154 and must be verified by the applicant. To register with the
4155 department, such attorney must provide:
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Amendment No.

4156 (a) The applicant's Florida Bar number.
4157 (b) A legible copy of the applicant's current driver
4158 license showing the full name and current address of such
4159 person. If a current driver license is not available, another
4160 form of identification showing the full name and current address
4161 of such person or persons shall be filed with the department.
4162 (c) The business address and telephone number of the
4163 applicant's firm or employer.
4164 (d) The names of agents or employees, if any, who are
4165 designated to act on behalf of the attorney, together with a
4166 legible copy of their photo identification issued by an agency
4167 of the United States, or a state, or a political subdivision
4168 thereof.
4169 (e) Sufficient information to enable the department to
4170 disburse funds by electronic funds transfer.
4171 (f) The tax identification number of the attorney's firm
4172 or employer.
4173 (4) Information and documents already on file with the
4174 department before the effective date of this provision need not
4175 be resubmitted in order to complete the registration.
4176 (4)(5) If a material change in the status of a
4177 registration occurs, the claimant representative a registrant
4178 must, within 30 days, provide the department with the updated
4179 documentation and information in writing. Material changes
4180 include, but are not limited to, the following,: a designated
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Amendment No.

4181 agent or employee ceasing to act on behalf of the designating
4182 person, a surrender, suspension, or revocation of a license, or
4183 a license renewal.
4184 (a) If a designated agent or employee ceases to act on
4185 behalf of the person who has designated the agent or employee to
4186 act on such person's behalf, the designating person must, within
4187 30 days, inform the department the Division of Unclaimed
4188 Property in writing of the termination of agency or employment.
4189 (b) If a registrant surrenders the registrant's license or
4190 the license is suspended or revoked, the registrant must, within
4191 30 days, inform the division in writing of the surrender,
4192 suspension, or revocation.
4193 (c) If a private investigator's Class "C" individual
4194 license under chapter 493 or a private investigator's employer's
4195 Class "A" business license under chapter 493 is renewed, the
4196 private investigator must provide a copy of the renewed license
4197 to the department within 30 days after the receipt of the
4198 renewed license by the private investigator or the private
4199 investigator's employer.
4200 (5)(6) An applicant's claimant representative's A
4201 registrant's firm or employer may not have a name that might
4202 lead another person to conclude that the claimant
4203 representative's registrant's firm or employer is affiliated or
4204 associated with the United States, or an agency thereof, or a
4205 state or an agency or political subdivision of a state. The
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4206 department shall deny an application for registration or revoke
4207 a registration if the applicant's or claimant representative's
4208 registrant's firm or employer has a name that might lead another
4209 person to conclude that the firm or employer is affiliated or
4210 associated with the United States, or an agency thereof, or a
4211 state or an agency or political subdivision of a state. Names
4212 that might lead another person to conclude that the firm or
4213 employer is affiliated or associated with the United States, or
4214 an agency thereof, or a state or an agency or political
4215 subdivision of a state, include, but are not limited to, the
4216 words United States, Florida, state, bureau, division,
4217 department, or government.
4218 (6)(7) The licensing and other requirements of this
4219 section must be maintained as a condition of registration with
4220 the department.
4221 (7) To maintain active registration under this section, a
4222 claimant representative must file and obtain payment on at least
4223 10 claims per calendar year following the date of initial
4224 registration.
4225 (a) If a claimant representative fails to meet this
4226 requirement, the department must notify the claimant
4227 representative in writing and provide 30 days to demonstrate
4228 compliance or good cause for noncompliance.

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Amendment No.

4229 (b) If the claimant representative does not cure the
4230 deficiency or demonstrate good cause within the time provided,
4231 the department must revoke the registration.
4232 (c) A claimant representative whose registration is
4233 revoked under this subsection may not reapply for registration
4234 under this section for a period of 1 year following the
4235 effective date of the revocation.
4236 Section 91. Subsection (1) of section 1001.281, Florida
4237 Statutes, is amended to read:
4238 1001.281 Operating Trust Fund.—
4239 (1) The Operating Trust Fund, FLAIR number 48-2-510, is
4240 created within the Department of Education.
4241 Section 92. Subsection (1) of section 1001.282, Florida
4242 Statutes, is amended to read:
4243 1001.282 Administrative Trust Fund.—
4244 (1) The Administrative Trust Fund, FLAIR number 48-2-021,
4245 is created within the Department of Education.
4246 Section 93. Paragraph (a) of subsection (2) of section
4247 197.582, Florida Statutes, is amended to read:
4248 197.582 Disbursement of proceeds of sale.—
4249 (2)(a) If the property is purchased for an amount in
4250 excess of the statutory bid of the certificateholder, the
4251 surplus must be paid over and disbursed by the clerk as set
4252 forth in subsections (3), (5), and (6). If the opening bid
4253 included the homestead assessment pursuant to s. 197.502(6)(c),
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4254 that amount must be treated as surplus and distributed in the
4255 same manner. The clerk shall distribute the surplus to the
4256 governmental units for the payment of any lien of record held by
4257 a governmental unit against the property, including any tax
4258 certificates not incorporated in the tax deed application and
4259 omitted taxes, if any. If there remains a balance of
4260 undistributed funds, the balance must be retained by the clerk
4261 for the benefit of persons described in s. 197.522(1)(a), except
4262 those persons described in s. 197.502(4)(h), as their interests
4263 may appear. The clerk shall mail notices to such persons
4264 notifying them of the funds held for their benefit at the
4265 addresses provided in s. 197.502(4). Such notice constitutes
4266 compliance with the requirements of s. 717.117 s. 717.117(6).
4267 Any service charges and costs of mailing notices shall be paid
4268 out of the excess balance held by the clerk. Notice must be
4269 provided in substantially the following form:
4270
4271 NOTICE OF SURPLUS FUNDS
4272 FROM TAX DEED SALE
4273
4274 CLERK OF COURT
4275 .... COUNTY, FLORIDA
4276
4277 Tax Deed #........
4278 Certificate #........
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4279 Property Description: ........
4280 Pursuant to chapter 197, Florida Statutes, the above
4281 property was sold at public sale on ...(date of sale)..., and a
4282 surplus of $...(amount)... (subject to change) will be held by
4283 this office for 120 days beginning on the date of this notice to
4284 benefit the persons having an interest in this property as
4285 described in section 197.502(4), Florida Statutes, as their
4286 interests may appear (except for those persons described in
4287 section 197.502(4)(h), Florida Statutes).
4288 To the extent possible, these funds will be used to satisfy
4289 in full each claimant with a senior mortgage or lien in the
4290 property before distribution of any funds to any junior mortgage
4291 or lien claimant or to the former property owner. To be
4292 considered for funds when they are distributed, you must file a
4293 notarized statement of claim with this office within 120 days of
4294 this notice. If you are a lienholder, your claim must include
4295 the particulars of your lien and the amounts currently due. Any
4296 lienholder claim that is not filed within the 120-day deadline
4297 is barred.
4298 A copy of this notice must be attached to your statement of
4299 claim. After the office examines the filed claim statements, it
4300 will notify you if you are entitled to any payment.
4301 Dated: ........
4302 Clerk of Court

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4303 Section 94. Paragraph (t) of subsection (1) of section
4304 626.9541, Florida Statutes, is amended to read:
4305 626.9541 Unfair methods of competition and unfair or
4306 deceptive acts or practices defined.—
4307 (1) UNFAIR METHODS OF COMPETITION AND UNFAIR OR DECEPTIVE
4308 ACTS.—The following are defined as unfair methods of competition
4309 and unfair or deceptive acts or practices:
4310 (t) Certain life insurance relations with funeral
4311 directors prohibited.—
4312 1. No life insurer shall permit any funeral director or
4313 direct disposer to act as its representative, adjuster, claim
4314 agent, special claim agent, or agent for such insurer in
4315 soliciting, negotiating, or effecting contracts of life
4316 insurance on any plan or of any nature issued by such insurer or
4317 in collecting premiums for holders of any such contracts except
4318 as prescribed in s. 626.785(2) s. 626.785(3).
4319 2. No life insurer shall:
4320 a. Affix, or permit to be affixed, advertising matter of
4321 any kind or character of any licensed funeral director or direct
4322 disposer to such policies of insurance.
4323 b. Circulate, or permit to be circulated, any such
4324 advertising matter with such insurance policies.
4325 c. Attempt in any manner or form to influence
4326 policyholders of the insurer to employ the services of any
4327 particular licensed funeral director or direct disposer.
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4328 3. No such insurer shall maintain, or permit its agent to
4329 maintain, an office or place of business in the office,
4330 establishment, or place of business of any funeral director or
4331 direct disposer in this state.
4332 Section 95. For the purpose of incorporating the amendment
4333 made by this act to section 717.101, Florida Statutes, in a
4334 reference thereto, paragraph (a) of subsection (6) of section
4335 772.13, Florida Statutes, is reenacted to read:
4336 772.13 Civil remedy for terrorism or facilitating or
4337 furthering terrorism.—
4338 (6)(a) In any postjudgment execution proceedings to
4339 enforce a judgment entered against a terrorist party under this
4340 section or under 18 U.S.C. s. 2333 or a substantially similar
4341 law of the United States or of any state or territory of the
4342 United States, including postjudgment execution proceedings
4343 against any agency or instrumentality of the terrorist party not
4344 named in the judgment pursuant to s. 201(a) of the Terrorism
4345 Risk Insurance Act, 28 U.S.C. s. 1610:
4346 1. There is no right to a jury trial under s. 56.18 or s.
4347 77.08;
4348 2. A defendant or a person may not use the resources of
4349 the courts of this state in furtherance of a defense or an
4350 objection to postjudgment collection proceedings if the
4351 defendant or person purposely leaves the jurisdiction of this
4352 state or the United States, declines to enter or reenter this
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4353 state or the United States to submit to its jurisdiction, or
4354 otherwise evades the jurisdiction of the court in which a
4355 criminal case is pending against the defendant or person. This
4356 subparagraph applies to any entity that is owned or controlled
4357 by a person to whom this paragraph applies;
4358 3. Creditor process issued under chapter 56 or chapter 77
4359 may be served upon any person or entity over whom the court has
4360 personal jurisdiction. Writs of garnishment issued under s.
4361 77.01 and proceedings supplementary under s. 56.29 apply to
4362 intangible assets wherever located, without territorial
4363 limitation, including bank accounts as defined in s.
4364 674.104(1)(a), financial assets as defined in s. 678.1021(1), or
4365 other intangible property as defined in s. 717.101. The situs of
4366 any intangible assets held or maintained by or in the
4367 possession, custody, or control of a person or entity so served
4368 shall be deemed to be in this state for the purposes of a
4369 proceeding under chapter 56 or chapter 77. Service of a writ or
4370 notice to appear under this section shall provide the court with
4371 in rem jurisdiction over any intangible assets regardless of the
4372 location of the assets;
4373 4. Notwithstanding s. 678.1121, the interest of a debtor
4374 in a financial asset or security entitlement may be reached by a
4375 creditor by legal process upon the securities intermediary with
4376 whom the debtor's securities account is maintained, or, if that
4377 is a foreign entity, legal process under chapter 56 or chapter
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4378 77 may be served upon the United States securities custodian or
4379 intermediary that has reported holding, maintaining, possessing,
4380 or controlling the blocked financial assets or security
4381 entitlements to the Office of Foreign Assets Control of the
4382 United States Department of the Treasury, and such financial
4383 assets or security entitlements shall be subject to execution,
4384 garnishment, and turnover by the United States securities
4385 custodian or intermediary; and
4386 5. Notwithstanding s. 670.502(4), when an electronic funds
4387 transfer is not completed within 5 banking days and is canceled
4388 pursuant to s. 670.211(4) because a United States intermediary
4389 financial institution has blocked the transaction in compliance
4390 with a United States sanctions program, and a terrorist party or
4391 any agency or instrumentality thereof was either the originator
4392 or the intended beneficiary, then the blocked funds shall be
4393 deemed owned by the terrorist party or its agency or
4394 instrumentality and shall be subject to execution and
4395 garnishment.
4396 Section 96. The following rules are ratified for the sole
4397 and exclusive purpose of satisfying any condition on
4398 effectiveness imposed under chapter 2025-100, Laws of Florida:
4399 Rules 69C-2.004, 69C-2.005, 69C-2.016, 69C-2.022, 69C-2.026,
4400 69C-2.034, 69C-2.035, 69U-100.097, 69V-560.1000, 69V-560.1012,
4401 69V-560.102, 69V-560.7032, 69V-560.7033, 69V-560.7034, 69V-
4402 560.7035, and 69V-560.7036, Florida Administrative Code,
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4403 entitled "Definitions," "Designation of a Qualified Public
4404 Depository," "Financial Information Reports by a Qualified
4405 Public Depository," "Requirements of Public Depositors,"
4406 "Administration of Payment of Losses," "Disqualification,
4407 Suspension, and Administrative Penalty," "Custodians of Gold
4408 Coin or Silver Coin," "Gold Coin or Silver Coin Deposits,"
4409 "Disciplinary Guidelines," "Adoption of Forms," "Application or
4410 Appointment Procedures and Requirements," "Records to Be
4411 Maintained when Engaged in Transactions Involving Gold and
4412 Silver Coin," "Gold Coin and Silver Coin Disclosures,"
4413 "Accredited Refiner or Wholesaler of Gold Coin or Silver Coin,"
4414 "Chain of Custody Related to Gold or Silver Coin," and "Rapid
4415 Response Time by Law Enforcement," respectively, as filed for
4416 adoption with the Department of State pursuant to the
4417 certification packages dated October 31, 2025, and November 1,
4418 2025.
4419 Section 97. Section 18 of chapter 2025-100, Laws of
4420 Florida, is repealed.
4421 Section 98. The amendments made by this act to s.
4422 215.55871, Florida Statutes, apply to inspection and grant
4423 applications submitted to the Department of Financial Services
4424 by a condominium association on or after July 1, 2026.
4425 Section 99. This act shall take effect upon becoming a
4426 law.
4427
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4428 -----------------------------------------------------
4429 T I T L E A M E N D M E N T
4430 Remove everything before the enacting clause and insert:
4431 An act relating to the Department of Financial
4432 Services; amending s. 17.11, F.S.; revising the
4433 subsystem used for a certain report of disbursements
4434 made; amending s. 17.13, F.S.; requiring the
4435 replacement of lost or destroyed warrants; amending s.
4436 110.113, F.S.; deleting the Department of Financial
4437 Services' authority to make semimonthly salary
4438 payments; amending s. 112.3135, F.S.; authorizing a
4439 public official to take specified actions in relation
4440 to the employment of a relative as a firefighter;
4441 amending s. 215.422, F.S.; requiring agencies to pay
4442 interest from available appropriations under certain
4443 circumstances; amending s. 215.5586, F.S.; defining
4444 terms; revising eligibility requirements for a
4445 hurricane mitigation inspection under the My Safe
4446 Florida Home Program; revising the circumstances under
4447 which applicants may submit a subsequent hurricane
4448 mitigation inspection; deleting the requirement that
4449 licensed inspectors must determine mitigation measures
4450 during initial inspections of eligible homes; deleting
4451 inspectors' authorization to inspect townhouses;
4452 revising the criteria for eligibility for a hurricane
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4453 mitigation grant; revising the grant's applicant
4454 requirements; permanently requiring participants to be
4455 low-or moderate-income, have an inspection within 24
4456 months of application, and homes having an insured
4457 value of $700,000 or less; revising the improvements
4458 that grants may be used for; requiring that
4459 improvements be identified in the final hurricane
4460 mitigation inspection to receive grant funds; deleting
4461 a provision related to grants for townhouses;
4462 authorizing the program to accept a specified
4463 certification directly from applicants; requiring
4464 applicants who receive grants to finalize construction
4465 and request a final inspection within a specified
4466 timeframe; specifying that an application is deemed
4467 abandoned, rather than withdrawn, under certain
4468 circumstances; requiring the department to notify an
4469 applicant within a specified time period before an
4470 application is be deemed abandoned; authorizing the
4471 applicant to submit a subsequent application in
4472 certain circumstances; authorizing the department to
4473 determine that an application is not abandoned in
4474 certain circumstances; amending s. 215.55871, F.S.;
4475 defining the term "area median income"; removing the
4476 definition of the term "service area"; revising
4477 eligibility requirements for the My Safe Florida
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4478 Condominium Pilot Program; requiring the Department of
4479 Financial Services to adopt rules to verify household
4480 income; authorizing condominiums with mixed-income
4481 occupancies to participate in the pilot program under
4482 certain 11 circumstances; requiring an application for
4483 a mitigation grant to include documentation to verify
4484 household income; limiting the award of grant funds;
4485 requiring an association to complete a certain
4486 percentage of opening protection improvements;
4487 amending s. 215.89, F.S.; deleting obsolete
4488 provisions; amending s. 215.93, F.S.; revising the
4489 subsystems of the Florida Financial Management
4490 Information System; requiring certain requests for
4491 records to be made to a specified entity; prohibiting
4492 such requests from being made to the functional owner
4493 of the subsystem; providing an exception; amending s.
4494 215.94, F.S.; providing that the department is the
4495 functional owner of the Financial Management
4496 Subsystem; revising the functions of such subsystem;
4497 amending s. 215.96, F.S.; revising the composition of
4498 the coordinating council; deleting a requirement for
4499 the design and coordination staff; requiring minutes
4500 of meetings to be available to interested persons;
4501 revising the composition of ex officio members of the
4502 council; revising the duties, powers, and
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4503 responsibilities of the council; amending ss. 215.985,
4504 216.102, and 216.141, F.S.; conforming provisions to
4505 changes made by the act; amending s. 440.13, F.S.;
4506 revising the timeframe in which health care providers
4507 must petition the department to resolve utilization
4508 and reimbursement disputes; revising petition service
4509 requirements; revising the timeframe in which the
4510 panel determining the statewide schedule of maximum
4511 reimbursement allowances must submit certain
4512 recommendations to the Legislature; creating s.
4513 497.1411, F.S.; defining the term "applicant";
4514 specifying that certain applicants are permanently
4515 barred from licensure; specifying that certain
4516 applicants are subject to disqualifying periods;
4517 requiring the Board of Funeral, Cemetery, and Consumer
4518 Services to adopt rules; specifying requirements,
4519 authorizations, and prohibitions for such rules;
4520 specifying when a disqualifying period begins;
4521 specifying that the applicant has certain burdens to
4522 demonstrate that he or she is qualified for licensure;
4523 specifying that certain applicants who have been
4524 granted a pardon or restoration of civil rights are
4525 not barred or disqualified from licensure; specifying
4526 that such pardon or restoration does not require the
4527 board to award a license; authorizing the board to
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4528 grant an exemption from disqualification under certain
4529 circumstances; specifying requirements for the
4530 applicant in order for the board to grant an
4531 exemption; specifying that the board has discretion to
4532 grant or deny an exemption; specifying that certain
4533 decisions are subject to ch. 120, F.S.; providing
4534 applicability and construction; amending s. 497.142,
4535 F.S.; prohibiting an application from being deemed
4536 complete under certain circumstances; revising the
4537 list of crimes to be disclosed on a license
4538 application; amending s. 553.80, F.S.; providing that
4539 the use of certain dwellings as, or the conversion of
4540 such dwellings into, certain residences is not a
4541 change in occupancy as defined in the Florida Building
4542 Code amending s. 560.309, F.S.; providing that the
4543 federal Fair Debt Collection Practices Act only
4544 applies under certain circumstances; amending s.
4545 560.405, F.S.; providing a debit card used for payment
4546 will be treated the same as cash in certain
4547 transactions; prohibits the use of a credit card
4548 transaction in certain transactions; amending s.
4549 560.406, F.S.; clarifying when a licensee is subject
4550 to the Fair Debt Collection Practices Act; amending s.
4551 626.0428, F.S.; making conforming provisions to
4552 changes made in this act; amending s. 626.171, F.S.;
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4553 deleting reinsurance intermediaries from certain
4554 application requirements; revising the list of persons
4555 from whom the department is required to accept uniform
4556 applications; making clarifying changes regarding the
4557 voluntary submission of cellular telephone numbers;
4558 revising the exemption from the application filing fee
4559 for members of the United States Armed Forces;
4560 amending s. 626.292, F.S.; revising applicant
4561 requirements for a license transfer; amending s.
4562 626.611, F.S.; requiring the department to require
4563 license reexamination of certain persons, and suspend
4564 or revoke the eligibility to hold a license or
4565 appointment of such persons under certain
4566 circumstances; amending the grounds for suspension or
4567 revocation; amending 626.621, F.S.; authorizing the
4568 department to require an reexamination of certain
4569 persons; amending s. 626.731, F.S.; revising the
4570 qualifications for a general lines agent's license;
4571 amending s. 626.785, F.S.; revising the qualifications
4572 for a life agent's license; amending s. 626.831, F.S.;
4573 revising the qualifications for a health agent's
4574 license; amending s. 626.854, F.S.; requiring a public
4575 adjuster, public adjuster apprentice, or public
4576 adjusting firm to respond with specific information
4577 within a specified timeframe and document in the file
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4578 the response or information provided; amending s.
4579 627.797, F.S.; removing the requirement for insurers
4580 to file a list of attorney agents to the state
4581 Legislature by a specified date; amending s. 633.208,
4582 F.S.; providing that the use of certain dwellings as,
4583 or the conversion of such dwellings into, certain
4584 residences does not require the reclassification of
4585 such dwellings for purposes of enforcing the Florida
4586 Fire Prevention Code; amending s. 648.34, F.S.;
4587 revising requirements for bail bond agent applicants;
4588 amending s. 648.382, F.S.; requiring officers or
4589 officials of the appointing insurer to obtain, rather
4590 than submit, certain information; amending s. 717.001,
4591 F.S.; revising the short title; amending s. 717.101,
4592 F.S.; revising and adding definitions; amending s.
4593 717.102, F.S.; providing that certain intangible
4594 property is presumed abandoned; deleting a provision
4595 relating to the presumption that certain intangible
4596 property is presumed unclaimed; specifying the
4597 dormancy period for property presumed abandoned;
4598 requiring that property be considered payable or
4599 distributable under certain circumstances; deleting a
4600 provision relating to when property is payable or
4601 distributable; revising a presumption; providing that
4602 property shall be presumed abandoned under certain
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4603 circumstances; providing an exception; amending s.
4604 717.103, F.S.; requiring that intangible property be
4605 subject to the custody of the department under certain
4606 circumstances; amending criteria for when intangible
4607 property is subject to the custody of the department;
4608 repealing s. 717.1035, F.S., relating to property
4609 originated or issued by this state, any political
4610 subdivision of this state, or any entity incorporated,
4611 organized, created, or otherwise located in the state;
4612 amending ss. 717.104, 717.1045, 717.105, 717.106,
4613 717.107, 717.1071, 717.108, and 717.109, F.S.;
4614 conforming provisions to changes made by the act;
4615 amending s. 717.1101, F.S.; revising the timelines and
4616 conditions under which stock, other equity interests,
4617 or debt of a business association is considered
4618 abandoned; requiring the holder to attempt to confirm
4619 the apparent owner's interest in the equity interest
4620 by sending an e-mail communication under certain
4621 circumstances; requiring the holder to attempt to
4622 contract the apparent owner by first-class United
4623 States mail under certain circumstances; specifying
4624 that equity interest is presumed abandoned under
4625 certain circumstances; revising when unmatured,
4626 unredeemed, matured, or redeemed debt is presumed
4627 abandoned; specifying that the applicable dormancy
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4628 period ceases under certain circumstances; revising
4629 the timeframe that a sum held or owing by a business
4630 association is presumed abandoned; specifying equity
4631 interests in business associations and securities
4632 accounts are not presumed abnandoned solely due to
4633 inactivity under certain circumstances; amending ss.
4634 717.111, 717.112, 717.1125, 717.113, 717.115, and
4635 717.116, F.S.; conforming provisions to changes made
4636 by the act; amending s. 717.117, F.S.; specifying that
4637 property is presumed abandoned upon the expiration of
4638 the applicable dormancy periods; specifying that
4639 property is not deemed abandoned for certain purposes
4640 until the holder meets certain requirements; requiring
4641 holders of property presumed abandoned that has a
4642 specified value to use due diligence to locate and
4643 notify the apparent owner; requiring, before a
4644 specified timeframe, a holder in possession of
4645 presumed abandoned property to send a specified
4646 written notice to the apparent owner; specifying the
4647 method of delivery of such notice; requiring, before a
4648 specified timeframe, the holder to send a second
4649 written notice under certain circumstances;
4650 authorizing the reasonable cost for the notice to be
4651 deducted from the property; specifying that a signed
4652 return receipt constitutes an affirmative
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Amendment No.

4653 demonstration of continued interest; specifying
4654 requirements of the written notice; requiring holders
4655 of abandoned property to submit a specified report to
4656 the department; prohibiting certain balances,
4657 overpayments, deposits, and refunds from being
4658 reported as abandoned property; prohibiting certain
4659 securities from being included in the report;
4660 requiring the holder to report and deliver such
4661 securities under certain circumstances; requiring the
4662 report to be signed and verified and contain a
4663 specified statement; deleting certain provisions
4664 relating to the due diligence and notices to apparent
4665 owners; amending s. 717.118, F.S.; revising the
4666 state's obligation to notify apparent owners that
4667 their abandoned property has been reported and
4668 remitted to the department; requiring the department
4669 to use a cost-effective means to make an attempt to
4670 notify certain apparent owners; specifying
4671 requirements for the notice; requiring the department
4672 to maintain a specified website; revising
4673 applicability; amending s. 717.119, F.S.; conforming
4674 provisions to changes made by the act; revising
4675 requirements for firearm or ammunition found in an
4676 abandoned safe-deposit box or safekeeping repository;
4677 revising requirements if a will or trust instrument is
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Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4678 included among the contents of an abandoned safe-
4679 deposit box or safekeeping repository; amending ss.
4680 717.1201 and 717.122, F.S.; conforming provisions to
4681 changes made by the act; amending s. 717.123, F.S.;
4682 conforming provisions to changes made by the act;
4683 revising the name of a certain trust fund; amending s.
4684 717.1235, F.S.; conforming provisions to changes made
4685 by the act; amending s. 717.124, F.S.; conforming
4686 provisions to changes made by the act; deleting
4687 provisions related to requirements of claimant's
4688 representatives; specifying that the department is
4689 authorized to make a distribution of property or money
4690 in accordance with a specified agreement under certain
4691 circumstances; requiring shares of securities to be
4692 delivered directly to the claimant under certain
4693 circumstances; deleting a provision authorizing the
4694 department to develop a process by which a buyer of
4695 unclaimed property may electronically submit certain
4696 images and documents; deleting provisions relating to
4697 a buyer of unclaimed property's filing of a claim;
4698 amending s. 717.12403, F.S.; conforming provisions to
4699 changes made by the act; amending s. 717.12404, F.S.;
4700 requiring claims on behalf of an active corporation to
4701 include a specified driver license; conforming
4702 provisions to changes made by the act; amending ss.
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4703 717.12405 and 717.12406, F.S.; conforming provisions
4704 to changes made by the act; amending s. 717.1241,
4705 F.S.; defining the term "conflicting claim";
4706 conforming provisions to changes made by the act;
4707 revising requirements for remitting property when
4708 conflicting claims have been received by the
4709 department; amending ss. 717.1242, 717.1243, 717.1244,
4710 717.1245, 717.125, 717.126, 717.1261, 717.1262,
4711 717.129, 717.1301, 717.1315, and 717.132, F.S.;
4712 conforming provisions to changes made by the act;
4713 amending s. 717.1322, F.S.; revising the acts that
4714 constitute grounds for administrative enforcement
4715 action by the department; conforming provisions to
4716 changes made by the act; amending ss. 717.133,
4717 717.1333, and 717.1341, F.S.; conforming provisions to
4718 changes made by the act; amending s. 717.135, F.S.;
4719 conforming provisions to changes made by the act;
4720 deleting applicability; creating s. 717.1356, F.S.;
4721 specifying that agreements for the purchase of
4722 abandoned property reported to the department are
4723 valid only under certain circumstances; authorizing
4724 the seller to cancel a purchase agreement without
4725 penalty or obligation within a specified timeframe;
4726 specifying that the agreement must contain certain
4727 language; requiring a copy of an executed Florida
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/CS/HB 1221 (2026)
Amendment No.

4728 Abandoned Property Purchase Agreement be filed with
4729 the purchaser's claim; prohibiting the department from
4730 approving the claim under certain circumstances;
4731 specifying that certain purchase agreements are
4732 enforceable only by the seller; amending s. 717.138,
4733 F.S.; conforming provisions to changes made by the
4734 act; amending s. 717.1382, F.S.; conforming provisions
4735 to changes made by the act; conforming a cross-
4736 reference; amending s. 717.139, F.S.; providing
4737 legislative findings; revising a statement of public
4738 policy; deleting a legislative declaration; providing
4739 legislative intent; prohibiting title to abandoned
4740 property from transferring to the state except under
4741 certain circumstances; amending s. 717.1400, F.S.;
4742 requiring an individual to meet certain requirements
4743 in order to file claims as a claimant representative;
4744 revising application requirements for registering as a
4745 claimant representative; requiring claimant
4746 representatives to file and obtain payment on a
4747 specified number of claims within a specified
4748 timeframe to maintain active registration; requiring
4749 the department to notify the claimant representative
4750 in writing and provide a certain timeframe to
4751 demonstrate compliance or good cause for noncompliance
4752 under certain circumstances; requiring the department
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Amendment No.

4753 to revoke a registration under certain circumstances;
4754 prohibiting a claimant representative from reapplying
4755 under certain circumstances; amending ss. 1001.281 and
4756 1001.282, F.S.; conforming provisions to changes made
4757 by the act; amending ss. 197.582 and 626.9541, F.S.;
4758 conforming cross-references; reenacting s.
4759 772.13(6)(a), F.S., relating to postjudgment execution
4760 proceedings to enforce a judgment entered against a
4761 terrorist party, to incorporate the amendment made to
4762 s. 717.101, F.S., in a reference thereto; ratifying
4763 specified rules relating to legal tender for the sole
4764 and exclusive purpose of satisfying any condition on
4765 effectiveness pursuant to chapter 2025-100, Laws of
4766 Florida; repealing s. 18 of chapter 2025-100, Laws of
4767 Florida, which repeals specified provisions relating
4768 to legal tender; providing applicability for
4769 amendments made in this act to s. 215.55871, F.S.;
4770 providing an effective date.

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CS/HB 1263
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1263 COMPANION BILL: SB 1306 (Truenow)
TITLE: Office of Insurance Regulation LINKED BILLS: CS/HB 1265 Chaney
SPONSOR(S): Chaney RELATED BILLS: None
Committee References
Insurance & Banking Commerce
18 Y, 0 N, As CS 

SUMMARY
Effect of the Bill:
The bill addresses several matters related to the regulation of insurance in Florida including:
• Granting the Office of Insurance Regulation (“OIR”) and the Department of Financial Services (“DFS”) the
authority to issue cease and desist orders for unlicensed activity.
• Providing that OIR may examine administrators, which includes Pharmacy Benefit Managers (PBMs).
• Requiring background checks for key insurance personnel, and authorizing the Florida Department of Law
Enforcement and the Federal Bureau of Investigations to process fingerprints.
• Requiring OIR to be copied in the notice provided to the Department of Legal Affairs in the event of data
breaches that affect insurers or other entities subject to OIR’s jurisdiction.
• Requiring private passenger automobile insurers and residential property insurers to use certain models
approved by the Florida Commission on Loss Projection Methodology.
• Requiring full rate filings from private passenger automobile insurers after two years of certifying that
current rates are actuarily sound and adequate.
• Requiring minimum mitigation discounts for structures that meet or exceed building code requirements.
• Aligning Florida law with National Association of Insurance Commissioners (“NAIC”) accreditation
requirements by requiring the ultimate controlling person of an insurer to file an annual group capital
calculation and a liquidity stress test.
• Requiring Attorneys in Fact of Reciprocal Insurers to obtain a registration from OIR.

Fiscal or Economic Impact:
The bill may have an indeterminate fiscal impact on state government and the private sector.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
Authority of the Office of Insurance Regulation
The bill clarifies that the Office of Insurance Regulation (“OIR”) is responsible for all activities concerning other
entities under its jurisdiction, in addition to their current statutory authority over insurers and other risk bearing
entities. 1 (Section 1).

The bill grants OIR and the Department of Financial Services (“DFS”) the authority to issue cease and desist orders
when there is probable cause that a person is performing activities that require a license, registration, or certificate
of authority from OIR or DFS without holding the required authorization. (Section 3).

1 According to OIR, this change is necessary to clarify that OIR has jurisdiction to regulate entities that are within OIR’s

jurisdiction but are not risk bearing. Email from Seth Stubbs, Director of Legislative and Cabinet Affairs, Office of Insurance
Regulation, Explanation of Sections 1 & 22 (Feb. 5, 2026).
STORAGE NAME: h1263a.COM
DATE: 2/24/2026
1
CS/HB 1263

The authority to issue a cease and desist extends to any person who aids and abets in the violation of the Florida
Insurance Code. To enforce a cease and desist issued under this provision, OIR or DFS may file an action for a court
proceeding seeking an injunction against a person who violates any provision of the cease and desist order.
(Section 3).

The bill provides that OIR may examine administrators as often as it deems necessary. (Section 5).

Background Checks
The bill authorizes the Florida Department of Law Enforcement (“FDLE”) to accept and process fingerprints and
exchange criminal history records for individuals involved in the insurance industry. The bill requires background
checks for a wide range of persons associated with insurers or insurance-related entities, including organizers,
officers, employees, contractors, volunteers, and others who may influence or control insurance operations.
(Section 6).

Fingerprints must be submitted to OIR, an authorized vendor, or authorized agency and will be processed by both
the FDLE, for the state portion of the criminal background check, and the Federal Bureau of Investigation (“FBI”)
for the national portion of the criminal background check. The results of the background checks will be used by the
OIR to determine whether individuals meet eligibility requirements for licensure, certification, or authority to
operate under the Florida Insurance Code. The bill also provides procedures for submission, retention, and cost
responsibilities associated with fingerprint processing and background checks. (Section 6)

Fees for state and federal fingerprinting processing must be paid by the person submitting them. 2 (Section 6).

Cybersecurity
Current law requires certain entities 3 to provide a notice to the Department of Legal Affairs whenever there is a
breach of security4 affecting 500 or more individuals in Florida. 5 The bill requires entities subject to the
jurisdiction of OIR to copy OIR on the notice provided to the Department of Legal Affairs. (Section 2).

Covered entities that are required to notify OIR of a security breach must provide the following information to OIR
upon request:
• A police report, incident report, or computer forensics report.
• A copy of the policies in place regarding breaches.
• Steps that have been taken to rectify the breach. (Section 2).

Rate Filings
The bill provides that, beginning January 1, 2027, the projected comprehensive losses used to determine a
hurricane catastrophe load for private passenger automobile insurance rate filings must be estimated using a
model or method approved by the Florida Commission on Hurricane Loss Projection Methodology. (Section 7).

The bill provides that, beginning January 1, 2027, projected flood losses for personal residential property
insurance must be estimated using a model or method approved by the Florida Commission on Hurricane Loss
Projection Methodology. (Section 7).

2 According to FDLE, the cost for a statewide criminal history record check is $24, and if the person is required to undergo a

state and national criminal history record check, the total cost is $36. See Florida Department of Law Enforcement, Agency
Analysis of 2026 House Bill 1263, p. 3 (Feb. 5, 2026).
3 These entities are referred to as “covered entities” in statute, and include sole proprietorships, partnerships, corporations,

trusts, estates, cooperatives, associations, or other commercial entities that acquire, maintain, store, or use personal
information. For purpose of notice requirements, it also includes governmental entities.
4 A “breach of security” means “unauthorized access of data in electronic form containing personal information.” S.

501.171(1)(a), F.S.
5 S. 501.171(3)(a), F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
CS/HB 1263

Current law provides that if no rate change is proposed, an insurer may file with OIR a certification by an actuary
that existing rate levels produce rates which are actuarily sound and not inadequate. The bill provides that
residential property insurers and private passenger automobile insurers must file with OIR a full rate filing after
two consecutive years of certifying the current rate is adequate. (Section 10).

Mitigation Discounts, Credits, and Other Rate Differentials
The bill provides that OIR must determine minimum discounts, credits, other rate differentials, and appropriate
reductions in deductibles for fixtures and construction techniques that meet or exceed the minimum requirements
of the Florida Building Code. (Section 9).

The bill provides that OIR’s determination of a minimum discount may not prohibit an insurer from seeking
additional actuarily justified credits, discounts, or other rate differentials, or appropriate reductions in deductibles
for fixtures of construction techniques that meet or exceed the minimum requirements of the Florida Building
Code. (Section 9).

The bill provides that the notification form 6 sent to policyholders at the time of issuance of an insurance policy and
upon each renewal must notify the policyholder if the insurer offers an enhanced discount for a roof system that
uses a secondary water resistance. (Section 11).

Statewide Database of Uniform Mitigation Verification Inspection Forms
The bill requires OIR to contract with a state university to design, operate, upgrade, and maintain a statewide
database for uniform mitigation verification inspection forms. Beginning January 1, 2027, the bill requires insurers
to electronically file in this database a copy of each uniform mitigation inspection form submitted by a policyholder
within 15 days of receipt. (Section 11).

Assignment of Benefits Data Call
The bill repeals the requirement for insurers to report annually data on each residential and commercial property
insurance claim paid in the prior calendar year under an assignment agreement. (Section 12).

Insurer Experience Reporting
Beginning January 1, 2027, the bill requires each insurer transacting private passenger automobile insurance in
Florida to report monthly to OIR the following information:
• Policy coverage categories, including policies in force and total direct premiums earned and written.
• The type, location, and limits of writings in this state.
• Claims reporting requirements.
• Any other information deemed necessary by the Financial Services Commission (“FSC”) to provide OIR with
the ability to track trends occurring in the private passenger automobile insurance market. (Section 13).

The bill deletes a requirement for insurers in various lines of liability7 to annually report to OIR specified
information on premiums, reserves, expenses, losses, income, fees, acquisition costs, general expenses, dividends,
and investments. (Section 13).

6 The form must notify policyholders of the availability of each premium discount, credit, other rate differential, or reductions

in deductibles for windstorm mitigation and home hardening fixtures or techniques. The form must list actions a policyholder
may take to reduce their windstorm premium. See s. 627.711(1), F.S.
7 The lines include: fire, homeowners’ multiple peril, commercial multiple peril, commercial multiple peril, medical

malpractice, products liability, workers’ compensation, private passenger automobile liability, commercial automobile
liability, private passenger automobile physical damage, commercial automobile physical damage, officers’ and directors’
liability insurance, and other liability insurance.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
CS/HB 1263
Group Capital Calculation and Liquidity Stress Test Framework
The bill requires the ultimate controlling person of every insurer that is a member of an insurance holding
company system 8 to file an annual group capital calculation report on or before April 1, unless specifically exempt.
Exemptions include:
• Insurance holding company systems with only one insurer, that is only licensed and writing business in its
domestic state, and does not assume business from any other insurer.
• Insurance holding company systems that are already required to perform a group capital calculation by the
United States Federal Reserve Board.
• Insurance holding company systems whose non-U.S. group-wide supervisor9 is located in a reciprocal
jurisdiction that recognizes the United States’ regulatory approach to group supervision and group capital.
• An insurance holding company system that meets both of the following:
o It provides information to the lead state that meets the requirements for accreditation under the
National Association of Insurance Commissioners (“NAIC”) Financial Standards and Accreditation
Program, either directly or indirectly, through the group-wide supervisor who has determined that
the information is satisfactory to allow the lead state to comply with the NAIC group supervision
approach, as detailed in the NAIC Financial Analysis Handbook.
o Its non–U.S. group-wide supervisor is not in a reciprocal jurisdiction, as described in section 1103,
and recognizes and accepts, as specified by the director, the group capital calculation as the world-
wide group capital assessment for U.S. insurance groups that operate in that jurisdiction. (Section
14).

If OIR determines that an insurance holding company no longer meets one of the exemptions above, the ultimate
controlling person of the insurer must file the group capital calculation report at the next annual filing date, unless
OIR grants an extension based on reasonable grounds. (Section 14).

If an insurance holding company system has previously filed the annual group capital calculation report at least
once, OIR may exempt the ultimate controlling person from filing the annual group capital calculation report, or
accept a limited group capital filing instead of a full annual group capital calculation report, if the insurance holding
company system meets all of the following criteria:
• Has an annual direct and unaffiliated assumed premium 10 of less than $1 billion, excluding premiums
reinsured with the Federal Crop Insurance Corporation and Federal Flood Program.
• Does not have insurers within its holding company structure that are domiciled outside of the United States
or one of its territories.
• Does not have a banking, depository, or other financial entity that is subject to a regulatory capital
framework11 within its holding company structure.
• Attests that there are no material changes in the transactions between insurers and noninsurers in the
group which have occurred since the last filing of the annual group capital calculation report.
• The noninsurers within the holding company system do not pose a material financial risk to the insurer’s
ability to honor policyholder obligations. (Section 14).

8 An insurance holding company system consists of two or more affiliated persons, one or more of which is an insurer. See R.

69O-143.0465, F.A.C.
9 A group-wide supervisor is defined in the bill as the regulatory official authorized to engage in conducting and coordinating

group-wide supervision activities who is determined or acknowledged by the Insurance Commissioner to have sufficient
contacts with an internationally active insurance group.
10 “Direct written premiums” represent the total amount of premiums for policies sold to customers, before deducting any

reinsurance ceded. “Assumed premiums” are the revenue received for policy coverage that is provided due to a reinsurance
agreement. See Investopedia, Understanding Direct Premiums Written: Definition and Impact (Jan. 9, 2026)
https://www.investopedia.com/terms/d/direct-premiums-written.asp (last visited Feb. 8, 2026). “Unaffiliated assumed
premiums” are assumed premiums, when the insurance company takes on the risk from an insurance company outside its
holding company system.
11 “Regulatory capital framework” means the legal requirements specifying the minimum amount of capital a company must

hold to avoid increased regulatory scrutiny. . The term includes the NAIC risk-based capital frameworks. See 12 CFR §
217.601(2023).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
CS/HB 1263

If an insurance holding company system was granted an exemption due to a previous filing of the annual group
capital calculation report, OIR may require the ultimate controlling person to file an annual group capital
calculation report at any time, if any of the following criteria are met:
• An insurer within the holding company system is in a risk-based capital action level event or a similar
standard for a non-United States insurer.
• An insurer within the holding company system meets one or more of the standards of an insurer deemed to
be in a hazardous financial condition.
• An insurer within the holding company system otherwise exhibits qualities of a troubled insurer as
determined by OIR.

The bill requires the ultimate controlling person of every insurer that is a member of an insurance holding
company system to file the results of a specific year’s liquidity 12 stress test annually on or before April 1, provided
that the insurer meets at least one threshold of the scope criteria 13 adopted by the NAIC for that year. (Section 15).

The bill provides that the group capital calculation report and the liquidity stress test are regulatory tools to assess
group risks, capital adequacy, and group liquidity risks, and are not intended to rank insurers or insurance holding
company systems.

The bill prohibits insurers, brokers, and any other person engaged in the business of insurance from making any
representation or statement about the results of the group capital calculation or the liquidity stress test. The bill
also provides that an insurer may publish announcements for the sole purpose of rebutting a materially false
representation about the group capital calculation or liquidity stress test results. (Section 16).

Registration of Attorneys in Fact
The bill creates a registration for the attorney in fact of a reciprocal insurer. The application for registration as an
attorney in fact must be made under oath and must include:
• All basic organizational documents, and any amendments to such documents, of the applicant dated within
the last year and appropriately certified.
• The bylaws, rules, and regulations or similar documents regulating the conduct of the internal affairs of the
applicant, other applicable documents, and all amendments to those documents, dated within the last year
and appropriately certified.
• A copy of the most recent financial statement of the applicant, verified under oath by at least two of the
applicant’s principal officers.
• A detailed plan of operation.
• An e-mail address at which the applicant agrees to accept electronic service from OIR.
• Background information for each individual who is responsible for the conduct of the applicant’s affairs.
• Any other information OIR may reasonably require. (Section 17).

The bill provides that OIR may not require an applicant to pay a fee for the attorney in fact registration or for filing
an application for the registration. (Section 17).

Once an applicant files the sworn application, OIR must investigate each applicant, and may issue a registration if
OIR finds the applicant:
• Is competent and trustworthy, and intends use the registration to act in good faith.

12 Generally, liquidity means an insurer’s or holding company’s ability to promptly meet its short-term financial obligations,

like paying claims, using cash or investments, without incurring significant losses. See Investopedia, Understanding Current
Liquidity in Insurance: Key Concepts Explained, https://www.investopedia.com/terms/c/current-liquidity.asp# (Last visited
Feb. 9, 2026).
13 “Scope criteria” means the exposure bases (activities assumed to be correlated with liquidity risk) designated by the NAIC

for the specified data year. These exposure bases are used to establish a preliminary list of insurers considered scoped into the
Liquidity Stress Test Framework.
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• Has management that has a good business reputation and has had experience, training, or education that
qualifies the applicant to conduct business as an Attorney in Fact.
• Has a business plan that is consistent with the interests of potential insureds and the public. (Section 17).

The bill provides that the registration renews automatically on March 1 every year, provided the attorney in fact
remains qualified under chapter 629, F.S., which regulates reciprocal insurers. The bill provides that OIR may not
require an attorney in fact to pay a fee for the renewal of the registration. (Section 18).

The bill provides grounds for denial, suspension, or revocation of an attorney in fact’s registration. These grounds
include that OIR determined the attorney in fact:
• Has violated any lawful rule or order of the FSC or OIR or any applicable provision of the Insurance Code.
• Has used or is using methods or practices in the conduct of its business which render its further transaction
of business in this state hazardous or injurious to insured persons or the public.
• Has refused to be examined or to produce its accounts, records, and files for examination.
• Is or was affiliated with another attorney in fact which transacts business in Florida without a registration.
• Fails at any time to meet the qualifications required for issuance of the registration.
• Is under suspension or revocation in Florida or another state for any license related to insurance.
• Is under receivership, conservatorship, or rehabilitation proceedings in Florida or another state.
• Has financial conditions or business practices that pose a threat to the health, safety, or welfare of the
residents of Florida. (Section 19).

The bill provides that the suspension or revocation of an attorney in fact’s registration takes effect when the order
is mailed by OIR to the attorney in fact by registered or certified mail, and sent electronically to the e-mail address
provided in the application. The bill authorizes OIR to publish notice of the suspension or revocation of an attorney
in fact’s registration in one or more newspapers of general circulation published in Florida. (Section 20).

The bill provides that a suspension may not exceed one year, and that upon the end of the suspension period, the
registration is automatically reinstated. (Section 21).

The bill provides that OIR may impose administrative fines in lieu of suspension, revocation, or nonrenewal. These
fines include:
• For nonwillful violations, OIR may impose fines of up to $5,000 for each violation, which may not exceed
$50,000 for all nonwillful violations arising out of the same action.
• For knowing and willful violations, OIR may impose fines of up to $25,000 per violation, which may not
exceed $250,000 for all violations arising out of the same action.
• For knowing and willful violations of a lawful order issued by OIR or the FSC during a declared state of
emergency, OIR may impose a $200,000 fine for each violation, up to $1,000,000 for all knowing and willful
violations arising out of the same action. (Section 22).

Effective Date
The bill provides an effective date of July 1, 2026.

RULEMAKING:
The bill requires the Financial Services Commission (“FSC”) to adopt rules to implement the statewide database of
uniform mitigation verification inspection forms. (Section 11).

The bill requires the FSC to adopt rules specifying the information private passenger automobile insurers must file
monthly as part of the insurer experience reporting requirement. (Section 13).

The bill authorizes the FSC to adopt rules for the filing of the annual group capital calculation report in accordance
with the Insurance Holding Company System Regulatory Act of the NAIC and the Insurance Holding Company
System Model Regulation of the NAIC, as adopted in December 2020. (Section 14).
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The bill authorizes OIR to adopt rules for filing the results of the liquidity stress test in accordance with the
Insurance Holding Company System Regulatory Act of the NAIC and the Insurance Holding Company System Model
Regulation of the NAIC. (Section 16).

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
The bill may have an indeterminate fiscal impact on the OIR to the extent it may require additional resources to
ensure compliance with the requirements of the bill, including processing applications for Attorney in Fact
registrations.

PRIVATE SECTOR:
The bill may have an indeterminate economic impact on the private sector to the extent insurers may need to use
additional resources to ensure compliance with the requirements of the bill.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
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. 14 OIR is responsible for
examining the affairs, transactions, accounts, records, and assets of each authorized insurer in the state. 15 As part
of that process, insurers must make available all records relating to the subject of the examination. 16 OIR is also
authorized to carry out market conduct examinations to determine compliance with the Florida Insurance Code. 17

Financial Services Commission
The Financial Services Commission is composed of the Governor, the Chief Financial Officer, the Attorney General,
and the Commissioner of Agriculture and it serves as agency head of the OIR for purposes of rulemaking. 18 The
Financial Services Commission encompasses two offices: the Office of Insurance Regulation (responsible for
insurers and risk bearing entities) and the Office of Financial Regulation (responsible for the regulation of banks,
credit unions, other financial institutions, finance companies, and the securities industry). 19

Administrators
An administrator is a person or entity that markets or arranges insurance coverage, collects premiums or other
charges, or processes, adjusts, or settles claims, in connection with authorized commercial self-insurance funds or
insured or self-insured programs that provide life or health insurance. 20 The term includes a person or entity that
under a health care risk contract with an insurer or health maintenance organization provides billing and

14 S. 20.121(3)(a), F.S.
15 S. 624.316(1)(a), F.S.
16 S. 624.318(2), F.S.
17 S. 624.3161, F.S.
18 S. 20.121(3), F.S.
19 Id.
20 S. 626.88(1), F.S.

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collection services to insurers or HMOs on behalf of health care providers. 21 The term also includes pharmacy
benefit managers. 22

Background Checks
The Florida Department of Law Enforcement (“FDLE”) is responsible for processing criminal history background
checks and fingerprint submissions for a wide range of professions and regulatory programs, including those
involving licensure and employment eligibility. 23 FDLE is authorized to exchange fingerprint data with the United
States Department of Justice (“DOJ”) as part of national criminal history checks. 24 The Federal Bureau of
Investigation (“FBI”) s is the principal investigative arm of the DOJ. 25

As part of Florida’s oversight of the insurance industry, FDLE provides access to criminal history information to
noncriminal justice agencies, such as the Department of Financial Services (“DFS”), for use in evaluating insurance
licensure applications. 26 Individuals applying for licenses—such as insurance agents, adjusters, and other regulated
professionals—must submit to fingerprint-based background screenings. 27 Fingerprints must be submitted
electronically through a LiveScan vendor approved by FDLE. 28 FDLE processes the fingerprints and transmits the
results to the appropriate licensing authority, typically DFS, to determine the applicant’s eligibility. 29

The FBI will not approve access to national criminal history record information for the purpose of licensing or
employment unless all of the following criteria are satisfied: 30
• The statute must exist as a result of a legislative enactment.
• It must require the fingerprinting of applicants who are subjected to a national criminal history record
check.
• It must authorize the use of FBI records for the screening of applicants.
• It must specify the specific categories of licensees or employees falling within its purview, thereby avoiding
overbreadth.
• It may not authorize receipt of the criminal history record information to a private entity.

Notice to the Department of Legal Affairs about Security Breach
Current law provides that entities that acquire, maintain, store, or use personal information must provide notice to
the Department of Legal Affairs of any breach of security that affects 500 or more individuals in Florida. 31 The
notice must be provided to the Department of Legal Affairs as soon as possible, but no later than 30 days following
the determination of the breach or reason to believe a breach occurred. 32 An entity may receive 15 additional days
to provide the required notice if good cause for delay is provided in writing to the Department of Legal Affairs. 33

The notice must include: 34
• A synopsis of the events surrounding the breach at the time the notice is provided.

21 Id.
22 Id.
23 S. 943.053, F.S.
24 S. 943.054, F.S.
25 Federal Bureau of Investigations, What is the FBI, https://www.fbi.gov/about/faqs/what-is-the-fbi (last visited Feb. 7,

2026).
26 S. 943.053(3)(a), F.S.
27 S. 626.171(4), F.S.
28 Florida Department of Financial Services, Fingerprinting Information,

https://www.myfloridacfo.com/division/agents/licensing/agents-and-adjusters/fingerprinting-information. (last visited on
Feb. 7, 2026).
29 Id.
30 Florida Department of Law Enforcement, Agency Analysis of 2026 House Bill 1263, p. 4 (Feb. 5, 2026).
31 S. 501.171, F.S.
32 Id.
33 Id.
34 Id.

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• The number of individuals in Florida 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 entity to
the affected individuals, and instructions on how to use those services.
• A copy of the notice sent to the affected individuals.
• The name, address, telephone number, and e-mail address of the employee or agent of the entity that can
provide additional information about the breach.

Florida Commission on Hurricane Loss Projection Methodology
The Florida Commission on Hurricane Loss Projection Methodology was created in 1995 by the Legislature to
serve as an independent panel to evaluate computer simulation models and other recently developed or improved
actuarial methodologies for projecting hurricane and flood losses. 35

The Legislature determined that the Florida Commission on Hurricane Loss Projection Methodology was necessary
to ensure rates are neither excessive nor inadequate, and that computer modeling has made it possible to improve
the accuracy of hurricane and flood loss projections. 36

Rate Filings
Insurers 37 are required to submit an annual base rate filing for each line they write. There are two ways an insurer
can satisfy this requirement: 38
• A rate filing prepared by an actuary, including documentation demonstrating that the proposed rates are
not excessive, inadequate, or unfairly discriminatory.
• If no rate change is proposed, a filing which consists of a certification by an actuary that the existing rate
level produces rates which are actuarily sound and which are not inadequate.

Mitigation Discounts, Credits, and Other Rate Differentials
Residential property insurance rate filings must account for mitigation measures undertaken by policyholders to
reduce hurricane losses. 39 Specifically, the 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. 40

Upon their filing by an insurer or rating organization, OIR determines the discounts, credits, other rate differentials
and appropriate reductions in deductibles that reflect the full actuarial value of such revaluation, 41 which in turn
may be used in rate filings under the rating law. 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. 42

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. 43

35 Florida Commission on Hurricane Loss Projection Methodology, About the FCHLPM, https://fchlpm.sbafla.com/about-the-

fchlpm/ (last visited Feb. 8, 2026).
36 Id.
37 Workers’ compensation carriers, employer’s liability insurers, and most types of commercial property and casualty insurers

are excluded from this requirement. See s. 627.0645(1), F.S.
38 S. 627.0645, F.S.
39 S. 627.062(2), F.S.
40 S. 627.0629, F.S.
41 Id.
42 Id.
43 S. 627.711(1), F.S.

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Uniform Mitigation Verification Inspection Forms
Current law requires the Financial Services Commission (“FSC”) to develop by rule a uniform mitigation
verification inspection form that must be used by all insurers when submitted by policyholders for the purpose of
factoring discounts for wind insurance. 44

Insurer Experience Reporting
Each insurer transacting insurance business in Florida must report certain information annually to the OIR. 45 The
information for an insurer transacting private passenger automobile insurance must be on direct insurance
writings in Florida alone, represent total limits data, and be divided into the following categories: bodily injury
liability; property damage liability; uninsured motorist; personal injury protection benefits; medical payments;
comprehensive and collision. 46

The information for an insurer transacting fire, homeowner’s multiple peril, commercial multiple peril, medical
malpractice, products liability, workers’ compensation, private passenger automobile liability, commercial
automobile liability, private passenger automobile physical damage, commercial automobile physical damage,
officers’ and directors’ liability insurance, or other liability insurance must be reported for direct Florida business
only and be reported on a calendar-year basis annually by April 1 for the preceding calendar year. 47

OIR must provide a summary of this information in its annual report. 48

Assignment of Benefits Data Call
An assignment is the voluntary transfer of the rights of one party under a contract to another party; the transfer by
a party to another party of some valuable interest. 49 In 2022, 50 the Legislature prohibited the assignment, in whole
or in part, of any post-loss insurance benefit under any residential property insurance policy or under any
commercial property insurance policy issued on or after January 1, 2023. 51

Group Capital Calculation and Liquidity Stress Test
The National Association of Insurance Commissioners (“NAIC”) is the standard-setting and regulatory organization
created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five United
States territories. 52 The organization sets standards and regulatory best practices.

In December 2020, the NAIC adopted amendments to the NAIC Holding Company Model Act. These amendments
included implementing a group capital calculation and liquidity stress framework, with the goal of providing
insurance regulators with more tools for conducting group-wide supervision of holding companies. 53 Specifically,
the NAIC has noted that the group capital calculation will: 54
• provide key financial information on the insurance group;
• quantify risk across the insurance group:
• support transparency into how capital is allocated; and
• aid regulators in understanding whether and to what degree insurance companies are supporting the
operations of non-insurance entities.

44 S. 627.711, F.S.
45 S. 627.915, F.S.
46 S. 627.915(1), F.S.
47 S. 627.915(2), F.S.
48 S. 627.915(4), F.S.
49 Black’s Law Dictionary, 2nd Ed., https://thelawdictionary.org/assignment/ (last visited Feb. 7, 2026).
50 Section 21, ch. 2022-271, L.O.F.
51 S. 627.7152(13), F.S.
52 National Association of Insurance Commissioners (“NAIC”), What is the NAIC and what does it do?,

https://content.naic.org/sites/default/files/about-naic.pdf (last visited Feb. 3, 2026).
53 NAIC, The NAIC Group Capital Calculation, Liquidity Stress Test, and Receivership Provisions (August 2025),

http://content.naic.org/sites/default/files/government-affairs-brief-gccc-liquidity-receivership.pdf (last visited Feb. 2, 2026).
54 Id.

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The NAIC has indicated that implementation of these revisions will likely become an NAIC accreditation
requirement on January 1, 2026. 55 According to the NAIC, its accreditation program fosters inter-state cooperation,
reduces duplicative regulation, and provides baseline consumer protections. 56 NAIC accreditation allows
regulators of multi-state insurers to rely on the domiciliary state’s solvency regulations to avoid duplication of
effort and expense. 57 For example, instead of performing its own examination, a state may accept the examination
report prepared by an insurance department that was accredited at the time of examination. 58 According to the
NAIC, this cooperation saves insurance companies, and thus consumers, millions of dollars. 59 The loss of
accreditation could lead to the loss of domestic insurers. 60

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. 61 The customers,
known as subscribers, sign an agreement authorizing an agent to act as their attorney in fact for the purpose of
insurance. 62 The attorney in fact is usually a management company, and they are authorized to sign contracts on
behalf of all subscribers. 63

55 Id.
56 NAIC, The NAIC Accreditation Program (Jan. 2024), https://content.naic.org/sites/default/files/government-affairs-brief-

accreditation-program.pdf (last visited Feb, 3, 2026).
57 Id.
58 Id.
59 Id.
60 Id.
61 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.
62 Id. at 264.
63 Id. at 251.

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BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking 18 Y, 0 N, As CS 2/11/2026 Brackett Miguez
Subcommittee
THE CHANGES ADOPTED BY THE • Granted OIR and the Department of Financial Services the authority to
COMMITTEE: issue cease and desist orders for unlicensed activity.
• Provided that OIR may examine administrators, which includes
Pharmacy Benefit Managers (PBMs).
• Required OIR to be copied in the notice provided to the Department of
Legal Affairs in the event of data breaches that affect insurers or other
entities subject to OIR’s jurisdiction.
• Required private passenger automobile insurers and residential
property insurers to use certain models approved by the Florida
Commission on Loss Projection Methodology.
• Required full rate filings from private passenger automobile insurers
after two years of certifying that current rates are actuarily sound and
adequate.
• Required minimum mitigation discounts for structures that meet or
exceed building code requirements.
• Aligned Florida law with National Association of Insurance
Commissioners (“NAIC”) accreditation requirements by requiring the
ultimate controlling person of an insurer to file an annual group capital
calculation and a liquidity stress test.
• Required Attorneys in Fact of Reciprocal Insurers to obtain a
registration from OIR.
Commerce Committee Hamon Miguez

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CS/HB 1263 2026

1 A bill to be entitled
2 An act relating to the Office of Insurance Regulation;
3 amending s. 20.121, F.S.; providing that the Office of
4 Insurance Regulation is responsible for all activities
5 concerning entities under its jurisdiction; amending
6 s. 501.171, F.S.; requiring covered entities under the
7 office's jurisdiction to copy the office on certain
8 notices and provide certain information, upon request,
9 to the office; amending s. 624.310, F.S.; authorizing
10 the Department of Financial Services and the office to
11 issue and deliver cease and desist orders for certain
12 activities; authorizing the department and the office
13 to seek an injunction for enforcement of such order;
14 amending s. 624.316, F.S.; removing a provision
15 authorizing the Financial Services Commission to adopt
16 the Market Conduct Examiners Handbook; amending s.
17 624.3161, F.S.; requiring the office to examine
18 administrators under certain circumstances;
19 authorizing the commission to adopt by rule the Market
20 Conduct Examiners Handbook; creating s. 624.341, F.S.;
21 providing legislative findings and intent; requiring
22 the Department of Law Enforcement to accept and
23 process fingerprints taken of certain persons;
24 specifying procedures for fingerprinting; authorizing
25 the Department of Law Enforcement to exchange certain

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26 records with the office; specifying that fingerprints
27 must be submitted in accordance with certain rules;
28 requiring the Department of Law Enforcement and the
29 Federal Bureau of Investigation to conduct certain
30 background checks; requiring that certain fingerprints
31 be submitted and entered into a specified system;
32 requiring the office to inform the Department of Law
33 Enforcement of any person whose fingerprints no longer
34 need to be retained; specifying who bears the costs of
35 fingerprint processing; requiring the office to review
36 criminal history background checks and make certain
37 determinations; specifying that certain criminal
38 records be used by the office for certain purposes;
39 amending s. 627.062, F.S.; revising the factors that
40 the office must consider in determining if insurance
41 rates are excessive, inadequate, or discriminatory;
42 amending s. 627.0628, F.S.; requiring private
43 passenger automobile insurance to be adequately
44 projected; amending s. 627.0629, F.S.; requiring the
45 office to determine minimum rate differentials for
46 windstorm damage mitigation techniques that meet or
47 exceed the minimum requirements of the Florida
48 Building Code; authorizing insurers to seek additional
49 rate differentials; amending s. 627.0645, F.S.;
50 revising requirements of rate filing with the office

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51 for certain insurers; amending s. 627.711, F.S.;
52 requiring that certain discount notification forms for
53 personal lines residential property insurance policies
54 be sent to insureds at the time of policy issuance and
55 renewal; requiring the office to contract with a state
56 university to design, operate, upgrade, and maintain a
57 specified database; requiring property insurers to
58 file certain policyholder forms within a specified
59 timeframe in the database beginning on a specified
60 date; requiring the commission to adopt rules;
61 amending s. 627.7152, F.S.; removing a provision
62 requiring insurers to report on residential and
63 commercial property insurance claims paid in a certain
64 year; amending s. 627.915, F.S.; requiring private
65 passenger automobile insurers to file specified
66 monthly reports beginning on a specified date;
67 requiring the commission to adopt rules; removing the
68 requirement for certain insurers to submit such
69 report; removing an exemption for certain insurers;
70 creating s. 628.8011, F.S.; providing definitions;
71 requiring certain persons to file a group capital
72 calculation report annually by a specified date;
73 providing requirements for such report; exempting
74 certain insurance holding company systems from filing
75 such report; requiring certain non-United States-based

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76 insurance holding company systems to file a group
77 capital calculation report; authorizing the office to
78 exempt certain persons from filing such report under
79 certain circumstances; authorizing the filing of a
80 limited group capital filing instead of the group
81 capital calculation report under certain
82 circumstances; authorizing the office to require
83 certain insurance holding company systems to file such
84 report despite qualifying for an exemption under
85 certain circumstances; requiring the office to
86 establish certain criteria and publish certain
87 information on its website; authorizing the commission
88 to adopt certain rules; creating s. 628.8012, F.S.;
89 providing definitions; requiring certain persons to
90 annually file results of a liquidity stress test in
91 compliance with specified instructions; providing an
92 exemption; authorizing the office to adopt rules;
93 creating s. 628.8013, F.S.; providing that a certain
94 report and test are for specified purposes;
95 prohibiting certain representations or statements by
96 certain persons; authorizing an insurer to rebut
97 certain information in a written publication under
98 certain circumstances; creating s. 629.53, F.S.;
99 requiring attorneys in fact of reciprocal insurers to
100 obtain a registration; providing requirements for the

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101 application of such registration; prohibiting fees for
102 registration and registration application; requiring
103 the office to investigate applicants; authorizing the
104 office to issue registrations to applicants under
105 certain circumstances; creating s. 629.54, F.S.;
106 providing for automatic renewal of the registration of
107 an attorney in fact; creating s. 629.55, F.S.;
108 authorizing the office to deny, suspend, revoke, or
109 refuse to renew the registration of an attorney in
110 fact under certain circumstances; creating s. 629.56,
111 F.S.; providing for when an order of suspension or
112 revocation of a registration is effected; authorizing
113 the office to publish certain notice in newspapers of
114 general circulation; creating s. 629.57, F.S.;
115 providing a limitation on the period of suspension of
116 an attorney in fact registration; providing that a
117 registration is automatically reinstated after the
118 suspension ends; creating s. 629.58, F.S.; authorizing
119 the office to issue administrative fines in lieu of
120 suspension or revocation; prohibiting a fine from
121 being borne by an insurer; amending ss. 634.141,
122 634.314, and 634.416, F.S.; conforming cross-
123 references; providing an effective date.
124
125 Be It Enacted by the Legislature of the State of Florida:

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126
127 Section 1. Paragraph (a) of subsection (3) of section
128 20.121, Florida Statutes, is amended to read:
129 20.121 Department of Financial Services.—There is created
130 a Department of Financial Services.
131 (3) FINANCIAL SERVICES COMMISSION.—Effective January 7,
132 2003, there is created within the Department of Financial
133 Services the Financial Services Commission, composed of the
134 Governor, the Attorney General, the Chief Financial Officer, and
135 the Commissioner of Agriculture, which shall for purposes of
136 this section be referred to as the commission. Commission
137 members shall serve as agency head of the Financial Services
138 Commission. The commission shall be a separate budget entity and
139 shall be exempt from the provisions of s. 20.052. Commission
140 action shall be by majority vote consisting of at least three
141 affirmative votes. The commission shall not be subject to
142 control, supervision, or direction by the Department of
143 Financial Services in any manner, including purchasing,
144 transactions involving real or personal property, personnel, or
145 budgetary matters.
146 (a) Structure.—The major structural unit of the commission
147 is the office. Each office shall be headed by a director. The
148 following offices are established:
149 1. The Office of Insurance Regulation, which shall be
150 responsible for all activities concerning insurers, and other

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151 risk bearing entities, and other entities under its
152 jurisdiction, including licensing, rates, policy forms, market
153 conduct, claims, issuance of certificates of authority,
154 solvency, viatical settlements, premium financing, and
155 administrative supervision, as provided under the insurance code
156 or chapter 636. The head of the Office of Insurance Regulation
157 is the Director of the Office of Insurance Regulation, who may
158 also be known as the Commissioner of Insurance Regulation.
159 2. The Office of Financial Regulation, which shall be
160 responsible for all activities of the Financial Services
161 Commission relating to the regulation of banks, credit unions,
162 other financial institutions, finance companies, and the
163 securities industry. The head of the office is the Director of
164 the Office of Financial Regulation, who may also be known as the
165 Commissioner of Financial Regulation. The Office of Financial
166 Regulation shall include a Bureau of Financial Investigations,
167 which shall function as a criminal justice agency for purposes
168 of ss. 943.045-943.08 and shall have a separate budget. The
169 bureau may conduct investigations within or outside this state
170 as the bureau deems necessary to aid in the enforcement of this
171 section. If, during an investigation, the office has reason to
172 believe that any criminal law of this state has or may have been
173 violated, the office shall refer any records tending to show
174 such violation to state or federal law enforcement or
175 prosecutorial agencies and shall provide investigative

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176 assistance to those agencies as required.
177 Section 2. Paragraph (f) is added to subsection (3) of
178 section 501.171, Florida Statutes, to read:
179 501.171 Security of confidential personal information.—
180 (3) NOTICE TO DEPARTMENT OF SECURITY BREACH.—
181 (f) If a covered entity is subject to the jurisdiction of
182 the Office of Insurance Regulation, the covered entity must copy
183 the office on the notice provided to the department. The covered
184 entity must provide any information listed in paragraph (c) to
185 the office upon its request.
186 Section 3. Paragraph (g) is added to subsection (5) of
187 section 624.310, Florida Statutes, to read:
188 624.310 Enforcement; cease and desist orders; removal of
189 certain persons; fines.—
190 (5) ADMINISTRATIVE FINES; ENFORCEMENT.—
191 (g) If the department or office has probable cause to
192 believe that a person is performing activities that require a
193 license, registration, certificate of authority, or any other
194 form of authorization from the department or office and the
195 person performing such activities does not hold the required
196 license, registration, certificate of authority, or other form
197 of authorization, the department or office may issue and deliver
198 to such person a notice to cease and desist from such violation
199 of the insurance code. In addition, the department or office may
200 issue and deliver a notice to cease and desist to any person who

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201 aids and abets the person violating the insurance code. For the
202 purpose of enforcing a cease and desist order under this
203 paragraph, the department or office may file an action for a
204 court proceeding in the name of this state seeking the issuance
205 of an injunction against a person who violates any provision of
206 the cease and desist order.
207 Section 4. Paragraph (c) of subsection (1) of section
208 624.316, Florida Statutes, is amended to read:
209 624.316 Examination of insurers.—
210 (1)
211 (c) The office shall examine each insurer according to
212 accounting procedures designed to fulfill the requirements of
213 generally accepted insurance accounting principles and practices
214 and good internal control and in keeping with generally accepted
215 accounting forms, accounts, records, methods, and practices
216 relating to insurers. To facilitate uniformity in examinations,
217 the commission may adopt, by rule, the Market Conduct Examiners
218 Handbook and the Financial Condition Examiners Handbook of the
219 National Association of Insurance Commissioners, 2002, and may
220 adopt subsequent amendments thereto, if the examination
221 methodology remains substantially consistent.
222 Section 5. Subsections (2) through (9) of section
223 624.3161, Florida Statutes, are renumbered as subsections (3)
224 through (10), respectively, subsection (1), paragraph (e) of
225 present subsection (8), and paragraph (a) of present subsection

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226 (9) are amended, and a new subsection (2) is added to that
227 section, to read:
228 624.3161 Market conduct examinations.—
229 (1) As often as it deems necessary, the office shall
230 examine each licensed rating organization, each advisory
231 organization, administrator, each group, association, carrier,
232 as defined in s. 440.02, or other organization of insurers which
233 engages in joint underwriting or joint reinsurance, the attorney
234 in fact of each reciprocal insurer, and each authorized insurer
235 transacting in this state any class of insurance to which
236 chapter 627 is applicable. The examination must be for the
237 purpose of ascertaining compliance by the person examined with
238 the applicable provisions of this chapter and chapters 440, 626,
239 627, and 635.
240 (2) To facilitate uniformity in examinations, the
241 commission may adopt, by rule, the Market Conduct Examiners
242 Handbook of the National Association of Insurance Commissioners,
243 2024, and may adopt subsequent amendments thereto, if the
244 examination methodology remains substantially consistent.
245 (9)(8) The office shall create, and the commission shall
246 adopt by rule, a selection methodology for scheduling and
247 conducting market conduct examinations of insurers and other
248 entities regulated by the office. This requirement does not
249 restrict the authority of the office to conduct market conduct
250 examinations as often as it deems necessary. Such selection

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251 methodology must prioritize market conduct examinations of
252 insurers and other entities regulated by the office to whom any
253 of the following conditions applies:
254 (e) The insurer meets the criteria in subsection (8) (7).
255
256 The office shall present the proposed rule required by this
257 subsection to the commission no later than October 1, 2023. In
258 addition to the methodology required by this subsection, the
259 rule must provide criteria for how the office, in coordination
260 with the department, will determine what constitutes a
261 disproportionate number of claims-handling complaints described
262 in paragraph (b).
263 (10)(9) If the office concludes through an examination
264 pursuant to this section that an insurer providing liability
265 coverage in this state exhibits a pattern or practice of
266 violations of the Florida Insurance Code during any
267 investigation or examination of the insurer, the office must
268 review the insurer's claims-handling practices to determine if
269 the insurer should be subject to the enhanced enforcement
270 penalties of this subsection.
271 (a) A liability insurer may be subject to enhanced
272 enforcement penalties if the office reviews the insurer's
273 claims-handling practices and finds a pattern or practice of the
274 insurer failing to do the following when responding to covered
275 liability claims under an insurance policy, after receiving

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276 actual notice of such claims:
277 1. Assign a licensed and appointed insurance adjuster to
278 investigate whether coverage is provided under the policy and
279 diligently attempt to resolve any questions concerning the
280 extent of the insured's coverage.
281 2. Evaluate the claim fairly, honestly, and with due
282 regard for the interests of the insured based on available
283 information.
284 3. Request from the insured or claimant additional
285 relevant information the insurer reasonably deems necessary to
286 evaluate whether to settle a claim.
287 4. Conduct all oral and written communications with the
288 insured with honesty and candor.
289 5. Make reasonable efforts to explain to persons not
290 represented by counsel matters requiring expertise beyond the
291 level normally expected of a layperson with no training in
292 insurance or claims-handling issues.
293 6. Retain all written and recorded communications and
294 create and retain a summary of all verbal communications in a
295 reasonable manner for a period of not less than 2 years after
296 the later of the entry of a final judgment against the insured
297 in excess of policy limits or, if an extracontractual claim is
298 made, the conclusion of that claim and any related appeals.
299 7. Within 30 days after a request, provide the insured
300 with all communications related to the insurer's handling of the

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301 claim which are not privileged as to the insured.
302 8. Provide, upon request and at the insurer's expense,
303 reasonable accommodations necessary to communicate effectively
304 with an insured covered under the Americans with Disabilities
305 Act.
306 9. When handling a third-party claim, communicate each of
307 the following to the insured:
308 a. The identity of any other person or entity the insurer
309 has reason to believe may be liable.
310 b. The insurer's final and completed estimate of the
311 claim.
312 c. The possibility of an excess judgment.
313 d. The insured's right to secure personal counsel at his
314 or her own expense.
315 e. That the insured should cooperate with the insurer,
316 including providing information required by the insurer because
317 of a settlement opportunity or in accordance with the policy.
318 f. Any formal settlement demands or offers to settle by
319 the claimant and any offers to settle on behalf of the insured.
320 10. Respond to any request for insurance information in
321 compliance with s. 626.9372 or s. 627.4137, as applicable.
322 11. Seek to obtain a general release of each insured in
323 making any settlement offer to a third-party claimant.
324 12. Take reasonable measures to preserve any documentary,
325 photographic, and forensic evidence as needed for the defense of

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326 the liability claim if it appears likely that the insured's
327 liability exposure is greater than policy limits and the insurer
328 fails to secure a general release in favor of the insured.
329 13. Comply with subsections (1) and (3) (2), if
330 applicable.
331 14. Comply with the Unfair Insurance Trade Practices Act.
332 Section 6. Section 624.341, Florida Statutes, is created
333 to read:
334 624.341 Authority of Department of Law Enforcement to
335 accept fingerprints of, and exchange criminal history records
336 with respect to, certain persons applying to the Office of
337 Insurance Regulation.—
338 (1) The Legislature finds that criminal activity of
339 insurers poses a particular danger to the residents of this
340 state. Floridians rely, in good faith, on the honest conduct of
341 those who issue and manage insurance policies and other
342 insurance instruments in this state. To safeguard the residents
343 of this state, the Legislature finds it necessary to ensure that
344 organizers, incorporators, officers, employees, contractors,
345 stockholders, directors, owners, managers, or volunteers
346 involved in the organization, operation, or management of any
347 insurer authorized to sell insurance do not have a criminal
348 record.
349 (2) The Department of Law Enforcement shall accept and
350 process fingerprints taken of organizers, incorporators,

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351 officers, employees, contractors, stockholders, directors,
352 owners, managers, or volunteers involved, directly or
353 indirectly, in the organization, operation, or management of
354 any:
355 (a) Insurer or proposed insurer transacting or proposing
356 to transact insurance in this state.
357 (b) Other entity that is examined or investigated, or is
358 eligible to be examined or investigated, under the office's
359 jurisdiction.
360 (c) Other person or entity subject to licensure under the
361 office's jurisdiction.
362 (3) A full set of fingerprints of persons or entities
363 described in subsection (2) must be submitted to the office or
364 to a vendor, an entity, or an agency authorized under s.
365 943.053(13). The office, vendor, entity, or agency shall forward
366 the fingerprints to the Department of Law Enforcement for state
367 processing, and the Department of Law Enforcement shall forward
368 the fingerprints to the Federal Bureau of Investigation for
369 national processing pursuant to s. 624.34(5). Fees for state and
370 federal fingerprint processing must be borne by the person
371 submitting them. The state cost for fingerprint processing is as
372 provided in s. 943.053(3)(e).
373 (4) The Department of Law Enforcement may, to the extent
374 authorized by federal law, exchange state, multistate, and
375 federal criminal history records with the office for the purpose

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376 of the issuance, denial, suspension, or revocation of a
377 certificate of authority, certification, registration, or
378 license to operate in this state.
379 (5) Fingerprints for each person or entity described in
380 subsection (2) must be submitted in accordance with rules
381 adopted by the commission.
382 (a) Fingerprints may be submitted through a third-party
383 vendor authorized by the Department of Law Enforcement.
384 (b) The Department of Law Enforcement shall conduct the
385 state criminal history background check and a federal criminal
386 history background check must be conducted through the Federal
387 Bureau of Investigation.
388 (c) All fingerprints submitted to the Department of Law
389 Enforcement must be submitted and entered into the statewide
390 automated biometric identification system established in s.
391 943.05(2)(b) and be available for use in accordance with s.
392 943.05(2)(g) and (h). The office shall inform the Department of
393 Law Enforcement the name of any person whose fingerprints no
394 longer need to be retained.
395 (d) The costs of fingerprint processing, including the
396 cost of retaining the fingerprints, must be borne by the person
397 subject to the background check.
398 (e) The office shall review the results of the state and
399 federal criminal history background checks and determine whether
400 the applicant meets the requirements for a certificate of

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401 authority, certification, registration, or license to operate in
402 this state.
403 (6) Statewide criminal records obtained through the
404 Department of Law Enforcement, federal criminal records obtained
405 through the Federal Bureau of Investigation, and local criminal
406 records obtained through local law enforcement agencies must be
407 used by the office for the purpose of issuance, denial,
408 suspension, or revocation of certificates of authority,
409 certifications, registrations, or licenses required to operate
410 in this state.
411 Section 7. Paragraph (b) of subsection (2) of section
412 627.062, Florida Statutes, is amended to read:
413 627.062 Rate standards.—
414 (2) As to all such classes of insurance:
415 (b) Upon receiving a rate filing, the office shall review
416 the filing to determine if a rate is excessive, inadequate, or
417 unfairly discriminatory. In making that determination, the
418 office shall, in accordance with generally accepted and
419 reasonable actuarial techniques, consider the following factors:
420 1. Past and prospective loss experience within and without
421 this state.
422 2. Past and prospective expenses.
423 3. The degree of competition among insurers for the risk
424 insured.
425 4. Investment income reasonably expected by the insurer,

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426 consistent with the insurer's investment practices, from
427 investable premiums anticipated in the filing, plus any other
428 expected income from currently invested assets representing the
429 amount expected on unearned premium reserves and loss reserves.
430 The commission may adopt rules using reasonable techniques of
431 actuarial science and economics to specify the manner in which
432 insurers calculate investment income attributable to classes of
433 insurance written in this state and the manner in which
434 investment income is used to calculate insurance rates. Such
435 manner must contemplate allowances for an underwriting profit
436 factor and full consideration of investment income that produces
437 a reasonable rate of return; however, investment income from
438 invested surplus may not be considered.
439 5. The reasonableness of the judgment reflected in the
440 filing.
441 6. Dividends, savings, or unabsorbed premium deposits
442 allowed or returned to policyholders, members, or subscribers in
443 this state.
444 7. The adequacy of loss reserves.
445 8. The cost of reinsurance. The office may not disapprove
446 a rate as excessive solely due to the insurer having obtained
447 catastrophic reinsurance to cover the insurer's estimated 250-
448 year probable maximum loss or any lower level of loss.
449 9. Trend factors, including trends in actual losses per
450 insured unit for the insurer making the filing.

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451 10. Conflagration and catastrophe hazards, if applicable.
452 11. Projected hurricane losses, if applicable, which must
453 be estimated using a model or method found to be acceptable or
454 reliable by the Florida Commission on Hurricane Loss Projection
455 Methodology, and as further provided in s. 627.0628.
456 12. Projected flood losses for personal residential
457 property insurance, if applicable, which must may be estimated
458 using a model or method, or a straight average of model results
459 or output ranges, independently found to be acceptable or
460 reliable by the Florida Commission on Hurricane Loss Projection
461 Methodology and as further provided in s. 627.0628 for filings
462 submitted to the office after January 1, 2027.
463 13. For filings submitted to the office after January 1,
464 2027, projected comprehensive losses, if applicable, used to
465 determine a hurricane catastrophe load for private passenger
466 automobile insurance, which must be estimated using a model or
467 method found to be acceptable or reliable by the Florida
468 Commission on Hurricane Loss Projection Methodology under s.
469 627.0628.
470 14.13. A reasonable margin for underwriting profit and
471 contingencies.
472 15.14. The cost of medical services, if applicable.
473 16.15. Other relevant factors that affect the frequency or
474 severity of claims or expenses.
475

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476 The provisions of this subsection do not apply to workers'
477 compensation, employer's liability insurance, and motor vehicle
478 insurance.
479 Section 8. Paragraph (a) of subsection (1) and paragraph
480 (a) of subsection (3) of section 627.0628, Florida Statutes, are
481 amended to read:
482 627.0628 Florida Commission on Hurricane Loss Projection
483 Methodology; public records exemption; public meetings
484 exemption.—
485 (1) LEGISLATIVE FINDINGS AND INTENT.—
486 (a) Reliable projections of hurricane losses are necessary
487 in order to ensure assure that rates for residential property
488 insurance and private passenger automobile insurance meet the
489 statutory requirement that rates be neither excessive nor
490 inadequate. The ability to accurately project hurricane losses
491 has been enhanced greatly in recent years through the use of
492 computer modeling. It is the public policy of this state to
493 encourage the use of the most sophisticated actuarial methods to
494 ensure assure that consumers are charged lawful rates for
495 residential property insurance and private passenger automobile
496 insurance coverage.
497 (3) ADOPTION AND EFFECT OF STANDARDS AND GUIDELINES.—
498 (a) The commission shall consider any actuarial methods,
499 principles, standards, models, or output ranges that have the
500 potential for improving the accuracy of or reliability of the

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501 hurricane loss projections used in residential property
502 insurance and private passenger automobile insurance rate
503 filings and flood loss projections used in rate filings for
504 personal lines residential flood insurance coverage. The
505 commission shall, from time to time, adopt findings as to the
506 accuracy or reliability of particular methods, principles,
507 standards, models, or output ranges.
508 Section 9. Subsection (1) of section 627.0629, Florida
509 Statutes, is amended to read:
510 627.0629 Residential property insurance; rate filings.—
511 (1) It is the intent of the Legislature that insurers
512 provide savings to consumers who install or implement windstorm
513 damage mitigation techniques, alterations, or solutions to their
514 properties to prevent windstorm losses. A rate filing for
515 residential property insurance must include actuarially
516 reasonable discounts, credits, or other rate differentials, or
517 appropriate reductions in deductibles, for properties on which
518 fixtures or construction techniques demonstrated to reduce the
519 amount of loss in a windstorm have been installed or
520 implemented. The fixtures or construction techniques must
521 include, but are not limited to, fixtures or construction
522 techniques that enhance wind uplift prevention, roof strength,
523 roof covering performance, roof-to-wall strength, wall-to-floor-
524 to-foundation strength, opening protection, and window, door,
525 and skylight strength. Credits, discounts, or other rate

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526 differentials, or appropriate reductions in deductibles, for
527 fixtures and construction techniques that meet or exceed the
528 minimum requirements of the Florida Building Code must be
529 included in the rate filing. The office shall determine the
530 minimum discounts, credits, other rate differentials, and
531 appropriate reductions in deductibles that reflect the full
532 actuarial value of such fixtures and construction techniques.
533 The office's determination may not prohibit an insurer from
534 seeking additional actuarily justified credits, discounts or
535 other rate differentials, or appropriate reductions in
536 deductibles for fixtures and construction techniques that meet
537 or exceed the minimum requirements of the Florida Building Code
538 revaluation, which may be used by insurers in rate filings.
539 Effective October 1, 2023, each insurer subject to the
540 requirements of this section must provide information on the
541 insurer's website describing the hurricane mitigation discounts
542 available to policyholders. Such information must be accessible
543 on, or through a hyperlink located on, the home page of the
544 insurer's website or the primary page of the insurer's website
545 for property insurance policyholders or applicants for such
546 coverage in this state. On or before January 1, 2025, and every
547 5 years thereafter, the office shall reevaluate and update the
548 fixtures or construction techniques demonstrated to reduce the
549 amount of loss in a windstorm and the discounts, credits, other
550 rate differentials, and appropriate reductions in deductibles

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551 that reflect the full actuarial value of such fixtures or
552 construction techniques. The office shall adopt rules and forms
553 necessitated by such reevaluation.
554 Section 10. Paragraph (b) of subsection (3) of section
555 627.0645, Florida Statutes, is amended to read:
556 627.0645 Annual filings.—
557 (3) The filing requirements of this section shall be
558 satisfied by one of the following methods:
559 (b) If no rate change is proposed, a filing which consists
560 of a certification by an actuary that the existing rate level
561 produces rates which are actuarially sound and which are not
562 inadequate, as defined in s. 627.062. However, for residential
563 property and private passenger automobile insurers, a full rate
564 filing is required after 2 consecutive years of certification
565 under this paragraph.
566 Section 11. Subsection (1) of section 627.711, Florida
567 Statutes, is amended, and paragraphs (c), (d), and (e) are added
568 to subsection (2) of that section, to read:
569 627.711 Notice of premium discounts for hurricane loss
570 mitigation; uniform mitigation verification inspection form.—
571 (1) Using a form prescribed by the Office of Insurance
572 Regulation, the insurer shall clearly notify the applicant or
573 policyholder of any personal lines residential property
574 insurance policy, at the time of the issuance of the policy and
575 at each renewal, of the availability and the range of each

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576 premium discount, credit, other rate differential, or reduction
577 in deductibles, and combinations of discounts, credits, rate
578 differentials, or reductions in deductibles, for properties on
579 which fixtures or construction techniques demonstrated to reduce
580 the amount of loss in a windstorm can be or have been installed
581 or implemented. The prescribed form shall describe generally
582 what actions the policyholders may be able to take to reduce
583 their windstorm premium. The prescribed form and a list of such
584 ranges approved by the office for each insurer licensed in the
585 state and providing such discounts, credits, other rate
586 differentials, or reductions in deductibles for properties
587 described in this subsection shall be available for electronic
588 viewing and download from the Department of Financial Services'
589 or the Office of Insurance Regulation's Internet website. The
590 prescribed form must also notify the applicant or policyholder
591 if the insurer offers an enhanced discount for a roof system
592 that uses a secondary water resistance, and the form must
593 generally list the amount of discount by type of secondary water
594 resistance. The Financial Services Commission may adopt rules to
595 implement this subsection.
596 (2)
597 (c) The office shall contract with a state university to
598 design, operate, upgrade, and maintain a statewide database for
599 uniform mitigation verification inspection forms. This database
600 must be managed by the office to collect and evaluate mitigation

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601 features of residential properties within this state.
602 (d) Beginning January 1, 2027, each insurer must
603 electronically file within 15 business days after receipt a copy
604 of each uniform mitigation inspection form submitted by a
605 policyholder in the database created under paragraph (c) using
606 the electronic format prescribed by the office.
607 (e) The Financial Services Commission shall adopt rules to
608 implement this subsection.
609 Section 12. Subsection (12) of section 627.7152, Florida
610 Statutes, is amended, to read:
611 627.7152 Assignment agreements.—
612 (12) The office shall require each insurer to report by
613 January 30, 2022, and each year thereafter data on each
614 residential and commercial property insurance claim paid in the
615 prior calendar year under an assignment agreement. The Financial
616 Services Commission shall adopt by rule a list of the data
617 required, which must include specific data about claims
618 adjustment and settlement timeframes and trends, grouped by
619 whether litigated or not litigated and by loss adjustment
620 expenses.
621 Section 13. Subsections (2) and (5) of section 627.915,
622 Florida Statutes, are amended to read:
623 627.915 Insurer experience reporting.—
624 (2)(a) Beginning January 1, 2027, each insurer transacting
625 private passenger automobile insurance in this state must file

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626 monthly with the office a report addressing all of the following
627 areas:
628 1. Policy coverage categories, including policies in force
629 and total direct premiums earned and written.
630 2. The type, location, and limits of writings in this
631 state.
632 3. Claims reporting requirements.
633 4. Any other information deemed necessary by the
634 commission to provide the office with the ability to track
635 trends occurring in the private passenger automobile insurance
636 market.
637 (b) The commission shall adopt rules specifying the
638 information required to be reported under this subsection and
639 the format required for the reports fire, homeowner's multiple
640 peril, commercial multiple peril, medical malpractice, products
641 liability, workers' compensation, private passenger automobile
642 liability, commercial automobile liability, private passenger
643 automobile physical damage, commercial automobile physical
644 damage, officers' and directors' liability insurance, or other
645 liability insurance shall report, for each such line of
646 insurance, the information specified in this subsection to the
647 office. The information shall be reported for direct Florida
648 business only and shall be reported on a calendar-year basis
649 annually by April 1 for the preceding calendar year:
650 (a) Direct premiums written.

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651 (b) Direct premiums earned.
652 (c) Loss reserves for all known claims:
653 1. At beginning of the year.
654 2. At end of the year.
655 (d) Reserves for losses incurred but not reported:
656 1. At beginning of the year.
657 2. At end of the year.
658 (e) Allocated loss adjustment expense:
659 1. Reserve at beginning of the year.
660 2. Reserve at end of the year.
661 3. Paid during the year.
662 (f) Unallocated loss adjustment expense:
663 1. Reserve at beginning of the year.
664 2. Reserve at end of the year.
665 3. Paid during the year.
666 (g) Direct losses paid.
667 (h) Underwriting income or loss.
668 (i) Commissions and brokerage fees.
669 (j) Taxes, licenses, and fees.
670 (k) Other acquisition costs.
671 (l) General expenses.
672 (m) Policyholder dividends.
673 (n) Net investment gain or loss and other income gain or
674 loss allocated pro rata by earned premium to Florida business
675 utilizing the investment allocation formula contained in the

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676 National Association of Insurance Commissioner's Profitability
677 Report by line by state.
678 (5) Any insurer or insurer group which does not write at
679 least 0.5 percent of the Florida market based on premiums
680 written shall not have to file any report required by subsection
681 (2) other than a report indicating its percentage of the market
682 share. That percentage shall be calculated by dividing the
683 current premiums written by the preceding year's total premiums
684 written in the state for that line of insurance.
685 Section 14. Section 628.8011, Florida Statutes, is created
686 to read:
687 628.8011 Group capital calculation reports.—
688 (1) As used in this section, the term:
689 (a) "Group capital calculation instructions" means the
690 group capital calculation instructions adopted by the NAIC, as
691 amended from time to time, in accordance with the procedures
692 adopted by the NAIC if the methodology remains substantially
693 consistent.
694 (b) "Groupwide supervisor" means the regulatory official
695 authorized to engage in conducting and coordinating groupwide
696 supervision activities who is determined or acknowledged by the
697 commissioner to have sufficient contacts with an internationally
698 active insurance group. As used in this paragraph, the term
699 "internationally active insurance group" means an insurance
700 holding company system that includes an insurer registered under

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701 s. 628.801(1) and that meets all of the following criteria:
702 1. An insurer within the insurance holding company system
703 writes premiums in at least three countries.
704 2. The percentage of gross premiums written outside of the
705 United States is at least 10 percent of the insurance holding
706 company system's total gross written premiums.
707 3. Based on a 3-year rolling average, the total assets of
708 the insurance holding company system are at least $50 billion or
709 the total gross written premiums of the insurance holding
710 company system are at least $10 billion.
711 (2) Except as provided in paragraph (a), the ultimate
712 controlling person of every insurer subject to registration
713 under s. 628.801 must concurrently file with the registration an
714 annual group capital calculation report on or before April 1.
715 The report must be completed in accordance with the group
716 capital calculation instructions, which permit the office to
717 allow a controlling person who is not the ultimate controlling
718 person to file the group capital calculation report. The report
719 must be filed with the lead state regulator of the insurance
720 holding company system as determined by the office in accordance
721 with the procedures within the Financial Analysis Handbook
722 adopted by the NAIC.
723 (a) The following insurance holding company systems are
724 exempt from filing a group capital calculation report:
725 1. An insurance holding company system that has only one

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726 insurer within its holding company structure, is licensed and
727 writing business only in its domestic state, and does not assume
728 business from any other insurer.
729 2. An insurance holding company system that is required to
730 perform a group capital calculation specified by the United
731 States Federal Reserve Board. The office shall request the
732 calculation from the Federal Reserve Board under the terms of
733 information sharing agreements in effect. If the Federal Reserve
734 Board cannot share the calculation with the office, the
735 exemption under this paragraph does not apply to the insurance
736 holding company system.
737 3. An insurance holding company system in which a non-
738 United States groupwide supervisor is located within a
739 reciprocal jurisdiction as described in s. 624.610(4)(a) which
740 recognizes the United States state regulatory approach to group
741 supervision and group capital.
742 4. An insurance holding company system that meets the
743 following criteria:
744 a. It provides information to the lead state that meets
745 the requirements for accreditation under the NAIC financial
746 standards and accreditation program, either directly or
747 indirectly, through the groupwide supervisor who has determined
748 such information is satisfactory to allow the lead state to
749 comply with the NAIC group supervision approach, as detailed in
750 the Financial Analysis Handbook adopted by the NAIC.

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751 b. A non-United States groupwide supervisor of the
752 insurance holding company system who is not in a reciprocal
753 jurisdiction recognizes and accepts, as specified by the office
754 in regulation, the group capital calculation as the worldwide
755 group capital assessment for United States insurance groups that
756 operate in such jurisdiction.
757 (b) Notwithstanding subparagraphs (a)3. and (a)4., the
758 office shall require the group capital calculation report for
759 United States operations of any non-United States-based
760 insurance holding company system in which, after any necessary
761 consultation with other supervisors or officials, it is deemed
762 appropriate by the office for prudential oversight and solvency
763 monitoring purposes or for ensuring the competitiveness of the
764 insurance marketplace.
765 (c) Notwithstanding the exemptions provided in
766 subparagraphs (a)1.-4., the office may exempt the ultimate
767 controlling person from filing the annual group capital
768 calculation report or may accept a group capital filing or
769 report in accordance with criteria as specified in paragraphs
770 (e) and (f).
771 (d) If the office determines that an insurance holding
772 company system no longer meets one or more of the requirements
773 for an exemption from filing the group capital calculation
774 report under subsection (a), the ultimate controlling person
775 must file the group capital calculation report at the next

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776 annual filing date unless the office provides an extension based
777 on reasonable grounds shown.
778 (e) If an insurance holding company system has previously
779 filed the annual group capital calculation report at least once,
780 the office may exempt the ultimate controlling person from
781 filing the annual group capital calculation report if the office
782 determines based upon the previous filing that the insurance
783 holding company system meets all of the following criteria:
784 1. It has annual direct and unaffiliated assumed premium,
785 including international direct and assumed premium, of less than
786 $1 billion. For purposes of this subparagraph, premiums
787 reinsured with the Federal Crop Insurance Corporation and
788 Federal Flood Program are excluded from the annual direct and
789 unaffiliated assumed premium.
790 2. It does not have insurers within its holding company
791 structure which are domiciled outside of the United States or
792 one of its territories.
793 3. It does not have a banking, depository or other
794 financial entity that is subject to an identified regulatory
795 capital framework within its holding company structure.
796 4. It attests that there are no material changes in the
797 transactions between insurers and noninsurers in the group which
798 have occurred since the last filing of the annual group capital
799 calculation report.
800 5. The noninsurers within the insurance holding company

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801 system do not pose a material financial risk to the insurer's
802 ability to honor policyholder obligations.
803 (f) If an insurance holding company system has previously
804 filed the annual group capital calculation report at least once,
805 the office may accept a limited group capital filing in lieu of
806 the annual group capital calculation report if:
807 1. The insurance holding company system has annual direct
808 written and unaffiliated assumed premium, including
809 international direct and assumed premium, of less than $1
810 billion. For purposes of this subparagraph, premiums reinsured
811 with the Federal Crop Insurance Corporation and Federal Flood
812 Program are excluded.
813 2. The insurance holding company system does not have
814 insurers within its holding company structure who are domiciled
815 outside of the United States or one of its territories.
816 3. The insurance holding company system does not include a
817 banking, depository, or other financial entity that is subject
818 to an identified regulatory capital framework.
819 4. The insurance holding company system attests that there
820 are no material changes in transactions between insurers and
821 noninsurers in the group which have occurred since the last
822 filing of the report to the office and the noninsurers within
823 the holding company system do not pose a material financial risk
824 to the insurer's ability to honor policyholder obligations.
825 (g) If an insurance holding company system that has

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826 previously had an exemption with respect to the group capital
827 calculation report under paragraph (e) or paragraph (f), the
828 office may require at any time the ultimate controlling person
829 to file an annual group capital calculation report, completed in
830 accordance with the group capital calculation instructions, if
831 any of the following criteria are met:
832 1. An insurer within the insurance holding company system
833 is in a risk-based capital action level event as set forth in s.
834 624.4085 or a similar standard for a non-United States insurer.
835 2. An insurer within the insurance holding company system
836 meets one or more of the standards of an insurer deemed to be in
837 a hazardous financial condition as provided in s. 624.805.
838 3. An insurer within the insurance holding company system
839 otherwise exhibits qualities of a troubled insurer as determined
840 by the office based on unique circumstances including, but not
841 limited to, the type and volume of business written, ownership
842 and organizational structure, federal agency requests, and
843 international supervisor requests.
844 (h) The office shall establish by rule criteria for
845 satisfying when a non-United States jurisdiction is considered
846 to "recognize and accept" the group capital calculation report.
847 (i) The office must publish on its website a list of non-
848 United States jurisdictions that "recognize and accept" the
849 group capital calculation report.
850 (j) The commission may adopt rules for filing the annual

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851 group capital calculation report in accordance with the
852 Insurance Holding Company System Regulatory Act of the NAIC and
853 the Insurance Holding Company System Model Regulation of the
854 NAIC, as adopted in December 2020.
855 Section 15. Section 628.8012, Florida Statutes, is created
856 to read:
857 628.8012 Liquidity Stress Test Framework.—
858 (1) As used in this section, the term:
859 (a) "Liquidity Stress Test Framework" means the NAIC
860 Liquidity Stress Test Framework for Life Insurers Meeting the
861 Scope Criteria, the scope criteria applicable for a specific
862 data year, and the liquidity stress test instructions and
863 reporting templates for a specific data year. The term includes
864 amended versions of these documents if the methodology remains
865 substantially consistent.
866 (b) "Scope criteria" means the designated exposure bases
867 along with minimum magnitudes thereof for the specified data
868 year used to establish a preliminary list of insurers considered
869 scoped into the Liquidity Stress Test Framework, and as amended
870 if the methodology remains substantially consistent, for that
871 data year.
872 (c) "Scoped" means meeting at least one threshold of the
873 scope criteria and being subject to the requirements of the
874 Liquidity Stress Test Framework.
875 (2)(a) The ultimate controlling person of every insurer

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876 subject to registration and also scoped into the Liquidity
877 Stress Test Framework shall annually file the results of a
878 specific year's liquidity stress test on or before April 1. The
879 results must be filed with the office as the lead state
880 regulator of the insurance holding company system as determined
881 by the procedures within the Financial Analysis Handbook adopted
882 by the NAIC.
883 (b) Scoped insurers are exempt from the requirement under
884 paragraph (a) if the office, in consultation with the NAIC
885 Financial Stability Task Force or its successor, determines the
886 insurer should not be scoped into the Liquidity Stress Test
887 Framework for that data year.
888 (c) The performance of, and filing of the results from, a
889 specific year's liquidity stress test must comply with the
890 Liquidity Stress Test Framework's instructions and reporting
891 templates for that year and any office determinations, in
892 conjunction with the NAIC Financial Stability Task Force or its
893 successor, provided within the Liquidity Stress Test Framework.
894 (d) The office may adopt rules for filing the results of
895 the liquidity stress test in accordance with the Insurance
896 Holding Company System Regulatory Act of the NAIC and the
897 Insurance Holding Company System Model Regulation of the NAIC,
898 as adopted in December 2020.
899 Section 16. Section 628.8013, Florida Statutes, is created
900 to read:

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901 628.8013 Rebuttal of materially false statements.—
902 (1) The group capital calculation report and resulting
903 group capital ratio and the liquidity stress test, as provided
904 in s. 628.8012, along with its results and supporting
905 disclosures required under this section are regulatory tools for
906 assessing group risks and capital adequacy and group liquidity
907 risks, respectively, and are not intended as a means to rank
908 insurers or insurance holding company systems generally.
909 (2) Any representation or statement by any insurer,
910 broker, or other person engaged in any manner in the business of
911 insurance is prohibited with regard to an insurer's or insurer's
912 group's:
913 (a) Group capital calculation report.
914 (b) Group capital ratio.
915 (c) Liquidity stress test results.
916 (d) Supporting disclosures for the liquidity stress test.
917 (e) Any component derived in the group capital
918 calculation.
919 (3) If a representation or statement prohibited under
920 subsection (2) is published in a written publication and if the
921 insurer can demonstrate to the office with substantial proof the
922 falsity or inappropriateness, as the case may be, of such
923 representation or statement, the insurer may publish
924 announcements in a written publication if the sole purpose of
925 the announcement is to rebut the materially false representation

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926 or statement.
927 Section 17. Section 629.53, Florida Statutes, is created
928 to read:
929 629.53 Application for registration to operate as an
930 attorney in fact.—
931 (1) It is unlawful for any person to operate as an
932 attorney in fact of a reciprocal insurer without first having
933 obtained a registration from the office.
934 (2) The application for an attorney in fact registration
935 must be made, under oath, to the office by the applicant on a
936 form prescribed by the commission. The office may not require an
937 applicant to pay a fee for the registration or for filing an
938 application for such registration.
939 (3) In the application, the applicant must provide all of
940 the following information:
941 (a) All basic organizational documents, and any amendments
942 to such documents, of the applicant dated within the last year
943 and appropriately certified.
944 (b) The bylaws, rules, and regulations or similar
945 documents regulating the conduct of the internal affairs of the
946 applicant, other applicable documents, and all amendments to
947 those documents, dated within the last year and appropriately
948 certified.
949 (c) A copy of the most recent financial statement of the
950 applicant, verified under oath by at least two of the

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951 applicant's principal officers.
952 (d) A detailed plan of operation.
953 (e) An e-mail address at which the applicant agrees to
954 accept electronic service from the office.
955 (f) The background information specified in s. 629.227 for
956 each individual who is responsible for the conduct of the
957 applicant's affairs, including, but not limited to, any manager,
958 member, member of a board of directors, board of trustees,
959 executive committee, or other governing board or committee and
960 any other person or entity owning or having the right to acquire
961 10 percent or more of the voting securities or ownership
962 interest of the applicant.
963 (g) Any other information as the office reasonably
964 requires.
965 (4) Upon the filing of a sworn application, the office
966 must investigate each applicant and may issue the applicant a
967 registration if the office finds that the applicant:
968 (a) Is competent and trustworthy and intends to act in
969 good faith in the business authorized by the registration for
970 which the applicant applied.
971 (b) Has management that has a good business reputation and
972 has had experience, training, or education that qualifies the
973 applicant to conduct the business authorized by the registration
974 for which the applicant applied.
975 (c) Has a business plan that is consistent with the

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976 interests of potential insureds and the public.
977 Section 18. Section 629.54, Florida Statutes, is created
978 to read:
979 629.54 Registration expiration; renewal.—Each registration
980 for an attorney in fact issued under this chapter automatically
981 renews on March 1 of each year, provided the attorney in fact
982 remains qualified under this chapter. The office may not require
983 an attorney in fact to pay a fee for the renewal of the
984 registration.
985 Section 19. Section 629.55, Florida Statutes, is created
986 to read:
987 629.55 Grounds for denial, suspension, or revocation of
988 registration.—The office may deny, suspend, revoke, or refuse to
989 renew the registration of an attorney in fact if the office
990 determines that the attorney in fact:
991 (1) Has violated any lawful rule or order of the
992 commission or office or any applicable provision of the
993 insurance code.
994 (2) Has used or is using methods or practices in the
995 conduct of its business which render its further transaction of
996 business in this state hazardous or injurious to insured persons
997 or the public.
998 (3) Has refused to be examined or to produce its accounts,
999 records, and files for examination, or if any of its officers,
1000 or persons in similar positions, have refused to give

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1001 information with respect to its affairs or has refused to
1002 perform any other legal obligation as to such examination when
1003 required by the office.
1004 (4) Is or was affiliated with and under the same general
1005 management or interlocking directorate or ownership as another
1006 attorney in fact who transacts business in this state without
1007 having a registration required by this chapter.
1008 (5) At any time fails to meet any qualification for which
1009 issuance of the registration could have been refused had such
1010 failure then existed and been known to the office.
1011 (6) Is under suspension or revocation in this or any other
1012 state for any license relating to the business of insurance
1013 which the attorney in fact holds.
1014 (7) A proceeding for receivership, conservatorship,
1015 rehabilitation, or other delinquency proceeding regarding the
1016 attorney in fact, or an insurer with which the attorney in fact
1017 has a contractual relationship, has been commenced in any state.
1018 (8) The financial condition or business practices of the
1019 attorney in fact otherwise pose an imminent threat to the
1020 health, safety, or welfare of the residents of this state.
1021 Section 20. Section 629.56, Florida Statutes, is created
1022 to read:
1023 629.56 Order of suspension or revocation of registration;
1024 notice.—
1025 (1) The suspension or revocation of a registration of an

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1026 attorney in fact is effected by order of the office when such
1027 order is mailed to the attorney in fact by registered or
1028 certified mail and sent electronically to the e-mail address
1029 maintained by the attorney in fact with the office for such
1030 purpose.
1031 (2) The office may publish notice of any such revocation
1032 or suspension in one or more newspapers of general circulation
1033 published in this state.
1034 Section 21. Section 629.57, Florida Statutes, is created
1035 to read:
1036 629.57 Period of suspension; obligations during
1037 suspension; reinstatement.—
1038 (1) The registration of an attorney in fact is suspended
1039 for the time period provided in the order of suspension, which
1040 may not exceed 1 year, unless such suspension or the order upon
1041 which the suspension is based is modified, rescinded, or
1042 reversed.
1043 (2) Upon expiration of the suspension period, the
1044 registration is automatically reinstated as long as the
1045 registration has not otherwise terminated, unless the reasons
1046 for the suspension have not been remedied.
1047 Section 22. Section 629.58, Florida Statutes, is created
1048 to read:
1049 629.58 Administrative fine in lieu of suspension,
1050 revocation, or nonrenewal.—

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1051 (1) If the office finds that one or more grounds exist for
1052 the suspension, revocation, or nonrenewal of the registration of
1053 an attorney in fact issued under this chapter, the office may,
1054 in lieu of suspension or revocation, impose a fine upon the
1055 attorney in fact.
1056 (2) With respect to any nonwillful violation, the office
1057 may impose a fine upon the attorney in fact in an amount up to
1058 $5,000 for each violation. However, a fine may not exceed an
1059 aggregate amount of $50,000 for all nonwillful violations
1060 arising out of the same action.
1061 (3) With respect to any knowing and willful violation, the
1062 office may impose a fine upon the attorney in fact in an amount
1063 up to $25,000 for each violation. However, a fine may not exceed
1064 an aggregate amount of $250,000 for all knowing and willful
1065 violations arising out of the same action.
1066 (4) With respect to a knowing and willful violation of a
1067 lawful order or rule of the office or commission or of a
1068 provision of this code during a period in which the Governor
1069 declared a state of emergency pursuant to s. 252.36, the office
1070 may impose a $200,000 fine upon an attorney in fact for each
1071 violation, up to an aggregate amount of $1 million for all
1072 knowing and willful violations arising out of the same action
1073 relating to a covered loss or claim caused by the emergency.
1074 (5) A fine imposed by the office on the attorney in fact
1075 may not be borne by the insurer.

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1076 Section 23. Subsection (1) of section 634.141, Florida
1077 Statutes, is amended to read:
1078 634.141 Examination of companies.—
1079 (1) Motor vehicle service agreement companies licensed
1080 under this part may be subject to periodic examination by the
1081 office in the same manner and subject to the same terms and
1082 conditions as apply to insurers under part II of chapter 624.
1083 The office is not required to conduct periodic examinations
1084 pursuant to this section, but may examine a service agreement
1085 company at its discretion. An examination conducted pursuant to
1086 this section may cover a period of only the most recent 5 years.
1087 The costs of examinations conducted pursuant to ss.
1088 624.316(2)(e) and 624.3161(4) ss. 624.316(2)(e) and 624.3161(3)
1089 may not exceed 10 percent of the companies' reported net income
1090 for the prior year. The commission may by rule establish
1091 provisions whereby a company may be exempted from examination.
1092 Section 24. Section 634.314, Florida Statutes, is amended
1093 to read:
1094 634.314 Examination of associations.—Home warranty
1095 associations licensed under this part may be subject to periodic
1096 examinations by the office, in the same manner and subject to
1097 the same terms and conditions as apply to insurers under part II
1098 of chapter 624 of the insurance code. The office is not required
1099 to conduct periodic examinations pursuant to this section, but
1100 may examine a home warranty company at its discretion. An

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1101 examination conducted pursuant to this section may cover a
1102 period of only the most recent 5 years. The costs of
1103 examinations conducted pursuant to ss. 624.316(2)(e) and
1104 624.3161(4) ss. 624.316(2)(e) and 624.3161(3) may not exceed 10
1105 percent of the companies' reported net income for the prior
1106 year.
1107 Section 25. Subsection (1) of section 634.416, Florida
1108 Statutes, is amended to read:
1109 634.416 Examination of associations.—
1110 (1) Service warranty associations licensed under this part
1111 may be subject to periodic examination by the office, in the
1112 same manner and subject to the same terms and conditions that
1113 apply to insurers under part II of chapter 624. The office is
1114 not required to conduct periodic examinations pursuant to this
1115 section, but may examine a service warranty company at its
1116 discretion. An examination conducted pursuant to this section
1117 may cover a period of only the most recent 5 years. The costs of
1118 examinations conducted pursuant to ss. 624.316(2)(e) and
1119 624.3161(4) ss. 624.316(2)(e) and 624.3161(3) may not exceed 10
1120 percent of the companies' reported net income for the prior
1121 year.
1122 Section 26. This act shall take effect July 1, 2026.

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CS/HB 1263 by Rep. Chaney
Office of Insurance Regulation

AMENDMENT SUMMARY
February 26, 2026

Amendment #225893 by Rep. Hunschofsky (line 231):
• Removes a provision that allows OIR to conduct market conduct examinations on
administrators, which include pharmacy benefit managers (PBMs).

Amendment #108955by Rep. Chaney (line 332):
• Removes legislative intent language.
• Clarifies which persons are required to submit fingerprints to OIR.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (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: Commerce Committee
2 Representative Hunschofsky offered the following:
3
4 Amendment (with title amendment)
5 Remove line 231 and insert:
6 organization, each group, association, carrier,
7
8 -----------------------------------------------------
9 T I T L E A M E N D M E N T
10 Remove lines 17-18 and insert:
11 624.3161, F.S.;

225893 - h1263-line 231.docx
Published On: 2/25/2026 7:12:29 PM
Page 1 of 1
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (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: Commerce Committee
2 Representative Chaney offered the following:
3
4 Amendment (with title amendment)
5 Remove lines 332-410 and insert:
6 Section 6. Section 624.341, Florida Statutes, is created
7 to read:
8 624.341 Authority of Department of Law Enforcement to
9 accept fingerprints of, and exchange criminal history records
10 with respect to, certain persons applying to the Office of
11 Insurance Regulation.—
12 (1) The Department of Law Enforcement must accept
13 fingerprints from key managerial personnel with the ultimate
14 authority of the financial and operational decisions of the
15 entities licensed, certified, registered, or holding a
16 certificate of authority under the Florida Insurance Code. This
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (2026)
Amendment No.

17 section applies to the following persons as required by the
18 office:
19 (a) Incorporators, stockholders, and attorneys in fact
20 under ss. 624.404(3)(c), 632.638(3), 641.22(6)(c), and
21 629.091(2).
22 (b) Individuals responsible for the management of and
23 conduct of the management of an arrangement including all
24 trustees, officers, and directors under s. 624.439(2).
25 (c) Individuals employed or retained by an administrator
26 who are responsible for the conduct of the affairs of the
27 administrator, including members of the board of directors,
28 board of trustees, executive committee, other governing board or
29 committee, and the principal officers in the case of a
30 corporation or the partners or members in the case of a
31 partnership or association of the administrator under s.
32 626.8805(2)(c).
33 (d) Individuals who are responsible for a viatical
34 settlement provider’s affairs including but not limited to any
35 member of the viatical settlement provider’s board of directors,
36 board of trustees, executive committee, or other governing board
37 or committee and any other person or entity owning or having the
38 right to acquire ten percent or more of the voting securities of
39 the viatical settlement provider under s. 626.9912(3)(d).
40 (e) Managers of a company under ss. 627.829(1),
41 627.832(1)(g) and (j).
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (2026)
Amendment No.

42 (f) Directors, officers, trustees, or other natural
43 persons performing duties similar to those of a director,
44 officer, or trustee for the corporation, association, or trust
45 under s. 628.461(3)(a).
46 (g) Directors, officers, trustees, partners, owners,
47 managers, or joint venturers, or others performing functions
48 similar to those of a director, officer, or trustee under s.
49 628.4615(5)(a)7.
50 (h) Managers of a company under ss. 634.041(2),
51 634.304(2), and 634.404(2).
52 (i) Members of the board of directors, board of trustees,
53 executive committee, other governing board or committee,
54 officers, contracted management company personnel, and any other
55 person or entity owning or having the right to acquire ten
56 percent or more of the voting securities under ss. 636.008(3)
57 and 636.204(2)(c).
58 (j) Persons who are to be responsible for the conduct of
59 the affairs of a clinic including all members of the governing
60 body, the officers and directors in the case of a corporation,
61 and the partners or associates in the case of a partnership or
62 association under s. 641.405(2)(c).
63 (k) All natural persons who are directors and officers,
64 and each shareholder who owns or controls ten percent or more of
65 the shares of the corporation under ss. 642.021, and 642.032.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (2026)
Amendment No.

66 (l) Members, shareholders, and persons in charge of
67 providing care under a certificate of authority subject to s.
68 651.022(2)(c).
69 (2) The Department of Law Enforcement shall accept and
70 process fingerprints of individuals identified by the office
71 within subsection (1).
72 (3) Each person required to submit fingerprints to the
73 office, must provide a full set of fingerprints to the office or
74 to a vendor, an entity, or an agency authorized by s.
75 943.053(13). The office, vendor, entity, or agency shall forward
76 the fingerprints to the Department of Law Enforcement for state
77 processing, and the Department of Law Enforcement shall forward
78 the fingerprints to the Federal Bureau of Investigation for
79 national processing. Fees for state and federal fingerprint
80 processing must be borne by the person submitting the
81 fingerprints. The state cost for fingerprint processing is as
82 provided in s. 943.053(3)(e).
83 (4) The Department of Law Enforcement may, to the extent
84 provided by federal law, exchange any state or national criminal
85 history records with the office for the purpose of issuance or
86 continuation of a certificate of authority, certification,
87 registration, or license to operate in this state.
88 (5) Fingerprints must be submitted in accordance with
89 rules adopted by the commission.

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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (2026)
Amendment No.

90 (a) Fingerprints may be submitted through a third-party
91 vendor authorized by the Department of Law Enforcement.
92 (b) The Department of Law Enforcement shall conduct the
93 state criminal history background check, and a federal criminal
94 history background check shall be conducted through the Federal
95 Bureau of Investigation.
96 (c) All fingerprints submitted to the Department of Law
97 Enforcement must be submitted and entered into the statewide
98 automated fingerprint identification system established in s.
99 943.05(2)(b) and available for use in accordance with s.
100 943.05(2)(g) and (h).
101 (d) The costs of fingerprint processing, including the
102 cost of retaining the fingerprints, must be borne by the person
103 subject to the background checks.
104 (e) The office shall review the results of the state and
105 federal criminal history background checks and determine whether
106 the applicant meets the requirements for the certificate of
107 authority, certification, registration, or license to operate in
108 this state.
109 (6) Statewide criminal records obtained through the
110 Department of Law Enforcement, federal criminal records obtained
111 through the Federal Bureau of Investigation, and local criminal
112 records obtained through local law enforcement agencies must be
113 used by the office for the purpose of issuance, denial,
114 suspension, or revocation of certificates of authority,
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COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1263 (2026)
Amendment No.

115 certifications, registration, or licenses issued to operate in
116 this state.
117
118 -----------------------------------------------------
119 T I T L E A M E N D M E N T
120 Remove lines 20-23 and insert:
121 Conduct Examiners Handbook; creating s. 624.341, F.S.;
122 requiring the Department of Law Enforcement to accept
123 and process fingerprints taken of certain persons;
124 providing applicability;

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CS/HB 1291
FLORIDA HOUSE OF REPRESENTATIVES
BILL ANALYSIS
This bill analysis was prepared by nonpartisan committee staff and does not constitute an official statement of legislative intent.
BILL #: CS/HB 1291 COMPANION BILL: SB 1668 (Burton)
TITLE: Florida Birth-Related Neurological Injury LINKED BILLS: None
Compensation Association RELATED BILLS: None
SPONSOR(S): Anderson
Committee References
Insurance & Banking State Administration Budget Commerce
17 Y, 0 N  11 Y, 0 N, As CS 

SUMMARY
Effect of the Bill:
The bill amends operational and financial requirements for the Florida Birth-Related Neurological Injury
Compensation Association (“NICA”), codifies current benefit policies, and increases access to psychotherapy
providers. It requires continuous comprehensive major medical health coverage for the participant or enrollment
in Medicaid, if eligible, and requires the Birth-Related Neurological Injury Compensation Plan (“Plan”) to cover a
participant’s premiums and out-of-pocket costs. The bill requires NICA to compensate the Medicaid program for
services furnished to Plan participants. The bill authorizes NICA to recoup overpaid expenses from family members
via an administrative proceeding.

The bill revises NICA financial oversight by establishing timelines for existing provider assessments to ensure
timely collection, requiring NICA to perform actuarial soundness analyses, revising requirements for management
of Plan assets and liabilities, revising the actuarial valuation review process conducted by the Office of Insurance
Regulation (“OIR”), restructuring the remedies available to OIR for addressing potential financial unsoundness of
NICA, and increasing the limit on the fund transfer by OIR required for instances of inadequate cash flow.

Fiscal or Economic Impact:
The bill may have an indeterminant savings for the private sector.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY

ANALYSIS
EFFECT OF THE BILL:
The bill makes several changes to the governing framework of the Florida Birth-Related Neurological Injury
Compensation Association ("NICA"), relating to the petition process, Medicaid payments, compensation awards,
and financial solvency.

Definitions
The bill defines “participant” to mean “the person who suffered a birth-related neurological injury as an infant and
who accepted compensation under the plan by final order entered by an administrative law judge pursuant to s.
766.309, F.S.” (Section 2).

The bill replaces the terms “infant” and “child” with “participant.” According to NICA, 40% of its participants are
adults. 1 (Sections 3, 6, and 8).

1 Email from Hilary Brazzell, External Affairs Manager, Florida Birth-Related Neurological Injury Compensation Association,

NICA Information (Jan. 28, 2026).
STORAGE NAME: h1291d.COM
DATE: 2/24/2026
1
CS/HB 1291
The bill revises the definition of “claimant” to mean any person who files a claim, regardless of whether they’re
seeking compensation or not. It also substitutes the term “injuries” for “injury claims.” The bill also removes
references to “compensation” from the petition filing process, allowing claimants who are neither the participant
nor a family member of the participant to file a petition with the Division of Administrative Hearings (DOAH).
(Sections 2, 3, and 4).

Medicaid and Health Care Coverage for the Participant
The bill authorizes the Agency for Health Care Administration (“AHCA”) to recover the full amount of all medical
assistance provided by Medicaid on behalf of recipients to the full extent of third-party benefits, including incurred
costs of NICA plan participants. (Section 1).

The bill requires NICA to reimburse AHCA for fee-for-service 2 claims and capitation payments 3 for participants
enrolled in Medicaid, as well as for the payment of administrative and support costs associated with the provision
of the Medicaid services. (Section 6).

The bill requires a family member to continuously maintain comprehensive major medical health coverage for the
participant. A family member must obtain insurance coverage within 60 days after an administrative law judge
enters a final order approving a claim for compensation or apply for Medicaid coverage within 30 days after entry
of such order. If the participant is ineligible for Medicaid, the family member must obtain other coverage within 60
days after receipt of a Medicaid denial. A family member of an individual who is a participant on June 30, 2026,
must obtain the required coverage for the participant by January 1, 2027. (Section 6).

Compensation Awards
The bill revises the types of compensation of actual expenses for medically necessary care or services an
administrative law judge may award. The bill provides the following changes in benefits:
• Codifies coverage of medically necessary dental services.
• Expands coverage of behavioral health services for the participant’s family. It adds coverage for
psychotherapeutic services for any relative who resided with the participant, rather than only the father,
mother, or legal guardians.
o Such relatives will share in the aggregate annual benefit of $10,000 currently allotted for
psychotherapeutic services for immediate family members. In addition, the bill expands the
providers covered to include psychiatrists and psychotherapists who maintain equivalent licensure
in another jurisdiction.
• Codifies coverage for legal costs associated with establishing and maintaining guardianship for a
participant.
• The bill expands the type of vehicles covered to include vehicles rather than just vans.
• Clarifies the coverage of housing assistance benefit of up to $100,000 for the life of the participant includes,
but is not limited to, a down payment on a new home, and moving expenses. Currently, this benefit includes
home construction and modification costs.
• Requires NICA to reimburse plan participants for the payment of major medical health insurance coverage,
which includes the premium and any out-of-pocket expenses incurred by the participant.
• Clarifies that NICA will not provide compensation for professional custodial care provided by a family
member while such care is being provided by another person or entity or the family member is being
compensated from another source of work during the same time for which compensation is sought from
NICA. (Section 6).

2 The Medicaid fee-for-service model is the one in which doctors and other providers are paid directly by the state for each

service provided to the patient. See HealthCare.gov, Fee for Service, https://www.healthcare.gov/glossary/fee-for-service/
(last visited Feb. 17, 2026).
3 The Medicaid capitated model is one in which the state pays health plans a set rate for each enrollee. See Centers for

Medicare & Medicaid Services, Capitated Model, https://www.cms.gov/medicaid-chip/medicare-coordination/financial-
alignment/capitated-model (last visited Feb. 17, 2026).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
2
CS/HB 1291
The bill provides that in the case that NICA believes an overpayment was made and the family member disputes
that an overpayment has occurred, NICA is authorized to file a petition for DOAH review of an overpayment for a
determination of the amount, if any, to be recouped by NICA. (Section 6).

Financial Soundness of NICA
Current law requires NICA to estimate the present value of the total cost of a claim within 60 days after a claim is
filed and to update these estimates quarterly based on the actual costs incurred by NICA. The bill requires NICA to
submit these quarterly estimates to the Office of Insurance Regulation (“OIR”) within 10 business days after
completion. (Section 7).

The bill also requires NICA to calculate whether the plan is actuarially sound after the completion of its quarterly
revisions of claims estimates. The bill defines “actuarily sound” as the total plan assets available to fund future
liabilities being equal to or greater than 90 percent of the present value of total estimated liabilities excluding any
risk margin. This term is used in the NICA provisions; however, it is currently not defined. (Section 2).

The bill defines “risk margin” as “an additional, explicit allowance above the best-estimate reserve to reflect
uncertainty in future claim payments, including variation in claimant life expectancy and the number and cost of
pending or unreported claims. The risk margin is not included in the reserve amount used to calculate the funding
ratio.” (Section 2).

If NICA determines the plan is not actuarially sound, NICA must immediately notify OIR. Then, OIR must review
NICA’s calculations and, within 60 days after NICA’s notification, determine whether to initiate an actuarial
valuation, and notify NICA of its determination. OIR must, at a minimum, make its determination based on the
degree to which NICA’s calculations indicate that the plan is not actuarially sound, the direction and consistency of
recent trends in the calculations of the plan’s actuarial soundness, and the length of time since the most recent
actuarial analysis conducted by OIR and until the next biennial valuation. OIR must initiate such actuarial valuation
within 30 days after its determination there is a need for a valuation. (Section 7).

The bill requires OIR to make an actuarial valuation as provided upon calculation and notification by NICA that the
plan is not actuarially sound, in addition to the current requirement that OIR biennially review NICA’s actuarial
valuation. (Section 7).

The valuation by OIR must be based on the assets and liabilities of the plan for the calendar year before the year in
which the actuarial valuation is due. Further, OIR must determine whether the plan has adequate estimated cash
flows for the following fiscal year, whether, based on actuarial valuation, the plan is actuarially sound, and if not,
whether the plan is likely to return to actuarial soundness before the next biennial review. (Section 7).

The bill limits the assessments imposed by OIR on certain casualty insurers 4 if the Plan is not actuarially sound.
The assessments must generate a total amount no greater than the amount required to achieve actuarial
soundness of the plan within five years after the date of the order imposing the assessments. Additionally, the
assessments may not extend five years after the date of the order. (Section 7).

The bill requires that if NICA finds that the plan is not actuarially sound and the insurer assessments and hospital
and physician assessments are insufficient to achieve actuarial soundness of the plan, NICA must within 60 days of
such finding, notify the Governor, the President of the Senate, the Speaker of the House of Representatives, and
OIR. If NICA issues the notice, it may not accept any new claims without express authority from the Legislature.
However, this provision does not preclude NICA from accepting any claim if the injury occurred 18 months or more
before the effective date of the claim suspension.

4 These assessments apply to insurers writing liability insurance, malpractice insurance, and miscellaneous casualty insurance.

See ss. 766.314(5) and 624.605, F.S.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
3
CS/HB 1291
Under current law, for the 2025-2026 fiscal year, NICA is authorized to accept new claims during the fiscal year if
the total current estimates exceed 100 percent of the funds on hand and the funds that will be available to NICA
within the next 12 months. (Section 7).

The bill does not make changes to the amount paid by hospitals and physicians as annual assessments. (Section 7).

Effective Date
The bill provides an effective date of July 1, 2026. (Section 9).

FISCAL OR ECONOMIC IMPACT:
STATE GOVERNMENT:
OIR may experience workload increases related to the bill’s more rigorous, actuarial, approach to NICA financial
oversight. OIR can absorb these costs within existing resources.

PRIVATE SECTOR:
The bill may have an indeterminate economic impact on the private sector. The bill may have an indeterminate
impact on obstetricians’ malpractice premiums and on patients’ medical costs to the extent that the bill may
preserve the current obstetrics tort environment.

Additionally, the bill expands certain benefits to NICA participants, which will assist parents, other family
members, and legal guardians in funding medical and legal expenses and other necessary services for the care of
plan participants.

RELEVANT INFORMATION
SUBJECT OVERVIEW:
Florida Birth-Related Neurological Injury Compensation Association (NICA).
In 1988, the Legislature established the Florida Birth-Related Neurological Injury Compensation Plan (Plan) to
provide compensation, on a no-fault basis, for a limited class of catastrophic birth-related neurological injuries that
result in unusually high costs for custodial care and rehabilitation. The Legislature ventured to design the Plan to
stabilize and reduce malpractice insurance premiums for OB/GYNs. 5 To manage the Plan, the Legislature created
the Florida Birth-Related Neurological Injury Compensation Association (NICA). 6

Petition Process

DOAH Jurisdiction
A recent opinion from the First District Court of Appeal (DCA) put at issue whether DOAH has jurisdiction over
claims involving parents or legal guardians who assert that they do not seek compensation under the plan and
assert that they are not “claimants” as the term is currently defined in the NICA statutes. 7 That opinion was
subsequently withdrawn by the First DCA. 8 NICA has expressed concerns that while the opinion was not binding,
the issue of whether an ALJ has jurisdiction to enter a Final Order in a case in which a NICA claimant is not seeking
compensation from the plan may be affirmatively raised in future proceedings. 9

5 Ss. 766.301 and 766.303(1), F.S.
6 See s. 766.302(1), F.S.
7 Shands Jacksonville Medical Center, Inc. v. Chavez, 2024 WL 5059326 (Fla. 1st DCA 2024).
8 Shands Jacksonville Medical Center, Inc. v Chavez, 416 So.3d 1226 (Fla. 1st DCA 2025).
9 NICA, HB 1291/SB 1668 Florida Birth-Related Neurological Injury Compensation Association Summary and Analysis, at 9,

January 8, 2026.
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
4
CS/HB 1291
Claim Adjudication
A prospective plaintiff must exhaust all administrative remedies at the Division of Administrative Hearings
(DOAH) 10 before he or she may pursue medical malpractice litigation for a birth-related neurological injury.
Current law vests the presiding administrative law judge (ALJ) with exclusive original jurisdiction to hear claims
filed for birth-related neurological injury compensation under the Plan. 11 The ALJ makes a determination of
whether a claim is compensable. To this end, the ALJ considers all available evidence related to the nature of the
injury alleged as well as the immediate circumstances surrounding the alleged injury. 12

Adjudication
If the ALJ determines a claim is compensable, meaning the infant sustained a birth-related neurological injury and
that obstetrical services were delivered by an attending or supervising participating physician at the infant’s birth,
current law requires the ALJ to make an award providing compensation. 13

If the ALJ determines a claim is compensable, the rights and remedies granted by the Plan on account of a birth-
related neurological injury become the exclusive remedy, which means the successful claimant is barred from
pursuing a medical malpractice claim against any person or entity directly involved with the labor, delivery, or
immediate postdelivery resuscitation during which a birth-related neurological injury occurs. 14, 15 In addition, an
award may not be rendered if the claimant recovers under a settlement or a final judgment in a civil action. 16

If the ALJ determines a claim is not compensable, current law authorizes him or her to file a medical malpractice
lawsuit. 17

Awards Approved without a Determination
After a claimant files a petition for claim under the Plan, DOAH serves the Florida Birth-Related Neurological Injury
Compensation Association (NICA) with a copy of the petition. 18 After its own independent review, NICA may accept
the claim for compensation and ask the ALJ to approve the claimant’s claim as compensable. The ALJ may, without
determining whether the claim is compensable, approve such claim as compensable. 19 If the claimant accepts an
award under the Plan benefits, current law precludes the claimant from bringing or continuing a medical
malpractice lawsuit. 20

Compensation Awards

Lifetime Benefits
Once an ALJ determines a child is eligible under the Plan, the child is covered for life, and no other compensation
from a medical malpractice lawsuit or settlement is available. Instead, there are lifetime benefits and care available
through the Plan, which include actual expenses for: 21
• medical and hospital services;
• habilitative services and training;
• family residential or custodial care;

10 DOAH is housed within the Florida Department of Management Services.
11 Ss. 766.304, and 766.305(1), F.S. A claimant may appeal a DOAH order to the District Court of Appeal. S. 766.311, F.S.
12 S. 766.309, F.S.
13 S. 766.31(1), F.S.
14 S. 766.304, F.S.
15 However, current law does permit plaintiffs to bring a civil action in cases where there is clear and convincing evidence of

bad faith, malicious purpose, or willful and wanton disregard of human rights, safety, or property. S. 766.303(2), F.S.
16 S. 766.304, F.S.
17 S. 766.304, F.S. Current law tolls the five-year statute of limitations period for birth-related neurological injury

administrative claims pending or on appeal. S. 766.306, F.S. See s. 766.313, F.S.
18 S. 766.305(2), F.S.
19 S. 766.305(7), F.S.
20 S. 766.304, F.S.
21 S. 766.31, F.S.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
5
CS/HB 1291
• professional residential care;
• medications;
• special equipment and facilities; and
• related travel expenses.

At a minimum, immediate family members who reside with the covered child are entitled to a total annual benefit
of $10,000, to be shared amongst themselves, for psychotherapeutic services obtained from licensed psychologists
and psychotherapists. 22

For the life of the covered child, the Plan must also provide the child’s parents or legal guardians with a reliable
method of transportation, accounting for the special accommodations required for the covered child regardless of
the child’s age or weight. 23 In addition, the Plan must fund home construction and modification costs, which
current law caps at a lifetime limit of $100,000 in housing assistance. 24
Current law limits actual expenses to the reasonable prevailing charges within the community for similar
treatment of injured persons when the injured person pays for the treatment. The parents or legal guardians may
dispute the amount of actual expenses reimbursed or the denial of reimbursement by filing a petition with DOAH. 25

Intermittent Benefits
The Plan may also provide:
• Periodic payments or a lump sum cash award as determined by the ALJ to the infant's parents or guardians,
not to exceed $250,000. 26
• A $50,000 death benefit for the infant.
• Compensation for reasonable expenses incurred for filing the claim, including attorney's fees. 27

Current law requires the Plan to immediately pay expenses previously incurred at the time the ALJ awards
compensation, and future expenses as they are incurred. 28

In 2025, NICA incurred $143,129,789 in claims; in 2024, NICA incurred $189,722,125 in claims. 29

Medicaid Third-Party Payer Liability
The Plan does not reimburse or pay expenses that might otherwise be covered by insurance or any private or
governmental programs, unless such exclusion is prohibited by federal law. 30 Many children with birth-related
injuries are either covered by programs such as Children’s Medical Services or Medicaid. Under current state and
federal law, Medicaid is the payor of last resort for medically necessary goods and services furnished to Medicaid
recipients; therefore, current law prohibits NICA from shifting covered costs onto Medicaid. 31

22 S. 766.31(1)(a), F.S.
23 S. 766.31(1)(a), F.S.
24 S. 766.31(1)(a), F.S.
25 S. 766.31(1)(c), F.S.
26 This one-time award is in addition to the other recoverable lifetime expenses. Each January 1st, the award cap authorized in

current law will increase by 3 percent. As of January 1, 2026, this one-time cash award cap is $289,818.51.
27 S. 766.31(1)(d), F.S.
28 S. 766.31(2), F.S.
29 THF Certified Public Accountants, Florida Birth-Related Neurological Injury Compensation Association: Years ended June 30,

2025 and 2024 with Report of Independent Auditors, at 6 (Sept. 9, 2025) https://nica.com/wp-
content/uploads/2025/09/Audited-Financial-Statements-06-30-2025.pdf (last visited Jan. 9, 2026).
30 S. 766.31(1)(b), F.S.
31 S. 409.910, F.S. (which may be cited as the “Medicaid Third-Party Liability Act”); 42 C.F.R. § 433.136; 42 U.S.C. § 1396a.

JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
6
CS/HB 1291
In 2022, NICA entered into a settlement agreement with the United States to resolve a lawsuit 32 which alleged that
NICA held itself out as the payer of last resort for Plan expenses and submitted false reimbursement claims to
Medicaid in violation of the federal False Claims Act. 33 The settlement agreement declares that it does not
constitute an admission of liability by NICA nor a concession by the United States that its claims are not well
founded. 34 NICA paid $51 million plus interest to the federal government to settle the suit. 35

In July 2025, AHCA and NICA formalized an interagency agreement to coordinate payment for Medicaid services
for individuals dually enrolled in Medicaid and the Plan, with the Plan being the primary payor for services
rendered. NICA reimburses AHCA for managed care capitation rate payments and fee-for-service payments made.
AHCA is currently seeking an average of $11.5 million for state fiscal years 2022-2023 through 2024-2025 in
reimbursable expenses from NICA. 36

Financial Soundness of NICA

Provider Assessments
Provider assessments primarily finance the Plan, and the Legislature may appropriate additional funds to Plan. 37
NICA holds assessment deposits and must use all funds and income collected solely for making benefit
disbursements under the Plan and for reasonable administrative expenses. 38 Currently, the Plan is funded by
assessments from hospitals and physicians. In 2025, NICA collected $38,012,647 in hospital and physician
assessments; in 2024, NICA collected $37,945,268. 39

Hospitals
Each hospital licensed under Chapter 395 must pay an annual assessment of $50 per infant delivered during the
previous calendar year. 40 However, infants born to a charity patient 41 or to a patient for whom the hospital receives
Medicaid reimbursement must not be included in the annual assessment, provided that the sum of the annual
charges for charity patients plus Medicaid patients exceeds 10 percent of the hospital’s total annual gross
operating revenues. 42

32 U.S. ex. rel. Arven v. The Florida Birth-Related Neurological Injury Compensation Association, et al., No. 0:19-cv-61053 (S.D. Fla.

2019) and No. 20-13448 (11th Cir. 2022).
33 The federal False Claims Act allows the federal government to pursue perpetrators of fraud against government programs,

including its authorization of private citizens to file civil suits on behalf of the United States. Successful litigants receive a
portion of the government’s recovery. Civil Division, “The False Claims Act,” U.S. Department of Justice (updated Jan. 15, 2025)
https://www.justice.gov/civil/false-claims-act (last visited Jan. 9, 2026). See 31 U.S.C. §§ 3729-3733.
34 U.S. ex. rel. Arven supra note 35, at 4 (available at https://nica.com/reports/medicaid-settlement/) (last visited Jan. 9, 2026).
35 Id.
36 AHCA, Agency Bill Analysis for HB 1291 (2026), at 2 (Jan. 13, 2026)

http://abar.laspbs.state.fl.us/ABAR/Attachment.aspx?ID=37304 (last visited Jan. 21, 2026).
37 Ss. 766.314(1) and 766.314(2), F.S.
38 S. 766.314(3), F.S.
39 THF Certified Public Accountants, supra note 32, at 6.
40 S. 766.314(5)(a), F.S.
41 AHCA rule defines a charity care patient as a medically indigent patient whose charges are, in whole or in part, classified

according to the Florida Hospital Uniform Reporting System Manual. Rule 59E-5.101(3), F.A.C. See s. 766.314(4)(a), F.S.
42 S. 766.314(4)(a), F.S. Current law makes the hospital responsible for documenting, to NICA’s satisfaction, the exclusion of

any birth from the computation of the assessment. Upon demonstration of financial need by a hospital, current law authorizes
NICA to provide for installment payments of assessments.
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7
CS/HB 1291
Participating Physicians
A participating physician under the Plan is a licensed Florida physician who either practices obstetrics or performs
obstetrical services on a full or part-time basis 43 and pays an annual assessment 44 of $5,000 for coverage running
January 1st through December 31st. 45 Participating physicians are bound by DOAH rulings, or any appeals of DOAH
rulings, with respect to whether a birth-related neurological injury occurred. 46

If the physician did not pay his or her assessment for the year in which the injury occurred, there is no NICA
coverage. Hospitals that allow doctors who do not participate in NICA to deliver babies are subject to multi-million-
dollar catastrophic injury lawsuits. 47

Other Physicians
Current law requires all licensed allopathic or osteopathic physicians, regardless of medical specialty, to pay an
annual assessment of $250. This means obstetricians who decline to pay the $5,000 annual assessment for NICA
coverage must still pay the $250 assessment. 48

OIR Assessments
If OIR finds that provider assessments and appropriations from the Insurance Regulatory Trust Fund are not
sufficient to maintain the Plan on an actuarily sound basis, then OIR must require each licensed insurer writing
liability insurance, malpractice insurance, and miscellaneous casualty insurance to pay into NICA an annual
assessment as determined by OIR, which may not exceed 0.25% of the insurer’s net direct premiums written. 49
Casualty insurers may recover theses assessments through a surcharge on future policies, a rate increase
applicable prospectively, or a combination of the two. 50

If OIR finds that the Plan cannot be maintained on an actuarially sound basis based on assessments to providers,
appropriations from the Insurance Regulatory Trust Fund, and the special assessments to casualty insurers, then
OIR must increase the assessments to providers on a proportional basis as needed. 51

43 The term “participating physician” does not apply to any physician who practices medicine as an officer, employee, or agent

of the federal government. S. 766.302(7), F.S.
44 Current law exempts certain “participating physicians” from paying the annual assessment, including:

- A resident physician, assistant resident physician, or intern in an approved postgraduate training program, as defined
by the Board of Medicine or the Board of Osteopathic Medicine by rule;
- A retired physician who maintains an active license with the Department of Health;
- A physician who holds a limited license pursuant to s. 458.317 and who is not being compensated for medical
services;
- A physician employed full-time by the U.S. Department of Veterans Affairs (VA) and whose practice is confined to VA
hospitals;
- A physician in the U.S. Armed Forces and who meets the requirements of s. 456.024;
- A physician employed full-time by the State of Florida and whose practice is confined to state-owned facilities; and
- A physician employed full-time by the Department of Health. S. 766.314(4)(b), F.S.
45 See ss. 766.314(5)(a), 766.314(7)(a), and 766.302(7), F.S. Current law requires the Office of Insurance Regulation to

establish the rate of contribution for participating physicians for each tax year. s. 766.314(7)(a). If NICA receives the
assessment after January 31 of any calendar year, the physician shall qualify as a participating physician for that calendar year
only from the date the payment was received by the association. S. 766.314(5)(a), F.S.
46 S. 766.309(3), F.S.
47 Brad Blystone, A Statutory Primer: Birth-Related Neurological Injury Compensation Act, Florida Medical Business

(March/April 2012), https://marshalldennehey.com/sites/default/files/pdf-
articles/O%20243%20by%20B.%20Blystone%20%2803_04.12%29.pdf (last visited Jan. 28, 2026).
48 Ss. 766.314(4)(b) and 766.314(5)(a), F.S.
49 S. 766.314(5), F.S.
50 Id.
51 S. 766.314(7), F.S.

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Plan Assets and Liabilities
Current law declares that Plan funds are funds of the State of Florida. 52 Current law requires each person
authorized to receive deposits, issue vouchers, or withdraw or otherwise disburse any funds to post a fidelity bond
in an amount reasonably sufficient to protect Plan assets. 53 Current law requires the cost of fidelity bonds to be
paid from Plan assets. 54

Current law authorizes NICA to only invest Plan funds in the investment and securities described in s. 215.47, F.S.
Investment income are Plan funds. NICA may approve a trust agreement with the State Board of Administration
(“SBA”), where the SBA may invest and reinvest Plan funds within the provisions of s. 215.44-215.53. 55

As of June 30, 2025, NICA’s total assets increased by 8.08%, primarily due to an increase in investments, from
approximately $1.4 billion to more than $1.5 billion. However, NICA’s total liabilities remain greater than its total
assets; NICA’s total liabilities amount to $1.7 billion for 2025, which increased by almost $100 million from 2024
levels.

This means NICA has a deficit net position of approximately $189.3 million. Notwithstanding this figure, NICA’s
deficit net position is an improvement from June 30, 2024, where NICA’s deficit net position was about $216.6
million. This indicates that, for the moment, the growth in total assets currently exceeds the growth of total
liabilities, which was 5.31% year-over-year. The independent auditors of NICA’s financial statements attribute the
increase is total liabilities to an increase in claim reserves. 56

The independent auditors’ report also notes that the five-year change in average claim size for an open active claim
increased from $3.68 million (June 30, 2020) to $5.42 million (June 30, 2025). The average number of open claims
increased from 225 to 261. During this same five-year period, NICA’s overall claims reserve liability increased by
$660.5 million while the annual revenues from assessments only increased by $10.2 million. 57

Claims Management
Current law requires NICA to estimate the present value of a new claim’s total cost within 60 days after a claimant
files a claim for a birth-related neurological injury. 58 NICA must revise its initial estimate for a claim each quarter
based upon the actual costs incurred and any additional information that becomes available to the association
since the last review of such estimate, deducting amounts paid by NICA towards the claim balance. 59

In the event the total liability of all claim estimates equals or exceeds 100% of the Plan’s cash flow, which includes
cash-on-hand and all provider assessments received during the next 12-month period, current law prohibits NICA
from accepting any new claims for birth-related neurological injuries without express legislative authorization. 60 If
this freeze on new claims occurs, NICA must notify the Governor, the Speaker of the House of Representatives, the
President of the Senate, OIR, AHCA, and the Department of Health of the claims freeze within the first 30 days. 61

52 S. 766.315(5)(f), F.S.
53 Current law prohibits withdrawals of funds from the Plan unless NICA authorizes a withdrawal voucher. S. 766.315(5)(a),

F.S.
54 S. 766.315(5)(d), F.S.
55 S. 766.315(5)(f), F.S.
56 THF Certified Public Accountants, supra note 32 at 5.
57 THF Certified Public Accountants, supra note 32 at 25.
58 The total cost analysis includes the estimated amount to be paid to the claimant, the claimant’s attorney, the attorney’s fees

of the association incident to the claim, and any other expenses that are reasonably anticipated to be incurred by the
association in connection with the adjudication and payment of the claim. NICA factors in the maximum benefits for
noneconomic damages. S. 766.314(9)(a), F.S.
59 S. 766.314(9)(b), F.S.
60 S. 766.314(9)(c), F.S. Notwithstanding this suspension, current law authorizes NICA to accept new claims as long as the

birth-related neurological injury occurred at least 18 months prior to the effective date of the suspension. NICA may also
accept all new claims during the 2025-2026 fiscal year if the total of all current estimates exceeds prescribed limits.
61 S. 766.314(9)(c), F.S.

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9
CS/HB 1291
NICA’s quarterly calculation at September 2023 revealed that NICA came within $2 million of breaching the
liability-to-cash-flow threshold. The Plan’s ratio of assets to liabilities was about 89%, which NICA attributes to a
significant loss in market value due to aggressive interest rate hikes by the Federal Reserve in response to inflation
during the preceding 17 months. 62

If the claims freeze precludes a prospective plaintiff from asserting a claim for a birth-related neurological injury
against NICA, current law waives his or her requirement to exhaust all administrative remedies with DOAH and
NICA before pursuing medical malpractice litigation. 63

Actuarial Soundness
Current law requires NICA to inform the Legislature of its determination as to the annual cost of maintaining the
Plan on an actuarially sound basis. 64 Current law also requires OIR to conduct an actuarial valuation of the Plan’s
assets and liabilities on a biennial basis. 65 Should a time come when these funds prove insufficient to keep the Plan
actuarially sound, current law authorizes OIR to transfer another $20 million from the Insurance Regulatory Trust
Fund to the Plan. 66

In the event the additional $20 million transfer is insufficient to bring the Plan back to actuarial soundness, current
law authorizes OIR to levy an annual assessment on licensed casualty insurance carriers, not to exceed 0.25% of its
net direct premiums written individually. 67 If OIR finds that NICA cannot maintain the Plan on an actuarially sound
basis, current law requires OIR to increase provider assessments on a proportional basis. 68

In 2024, the Legislature required NICA, in consultation with OIR and AHCA, to provide a report by September 1,
2024, to the Governor, CFO, President of the Senate, and the Speaker of the House of Representatives that
recommends how to define actuarial soundness for NICA, how to structure a reporting obligation timeline for
actuarial soundness updates, and how to ensure a sufficient revenue level for NICA to maintain actuarial
soundness. 69 Pursuant to this directive, NICA recommends that:
• the funding ratio of assets-to-liabilities should be used as a point-in-time measure of actuarial soundness
and as a key indicator for revenue increases;
• actuarial soundness accounts for net cash flow;
• NICA posts funding ratios for each quarter on its website to document adherence to reporting timelines;
• NICA requests any increase in provider assessments as a percentage of the reserve requirement in relation
to the funding ratio, subject to OIR approval; and
• the casualty insurer assessment becomes the last option for additional Plan revenue. 70

62 NICA, supra note 12, at 14, January 8, 2026.
63 S. 766.314(9)(d), F.S.
64 S. 766.314(8), F.S.
65 S. 766.314(7), F.S.
66 S. 766.314(5)(b), F.S.
67 S. 766.314(5)(c), F.S. Casualty insurance carriers may recover their initial and annual assessments through a surcharge on

future policies, a rate increase applicable prospectively, or a combination of the two.
68 S. 766.314(7), F.S.
69 Ch. 2024-182, Laws of Fla.
70 NICA, Report on Actuarial Soundness: September 2024, at 3 (Sept. 2024) https://nica.com/wp-

content/uploads/2025/06/NICA-Report-on-Actuarial-Soundness-%E2%80%93-September-2024-Final.pdf (last visited Jan.
11, 2026).
JUMP TO SUMMARY ANALYSIS RELEVANT INFORMATION BILL HISTORY
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CS/HB 1291
RECENT LEGISLATION:

YEAR BILL #/SUBJECT HOUSE/SENATE OTHER INFORMATION
SPONSOR(S)
2025 SB 2502 - Implementing the 2025-2026 McClure/ Hooper Became law on July 1, 2025.
General Appropriations Act
2024 CS/CS/HB 1611 - Insurance Stevenson/ Trumbull Became law on July 1, 2024.

2024 CS/CS/CS/HB 989 - Chief Financial Officer LaMarca/ DiCeglie Became law on May 2, 2024.

2021 CS/CS/SB 1786 - Florida Birth-Related Koster/ Book Became law on June 21, 2021.
Neurological Injury Compensation Plan

OTHER RESOURCES:
2025 NICA Actuarial Report (June 30, 2025)

2025 NICA Audited Financial Statements (September 2025)

Agency for Health Care Administration Report on NICA as Third-Party Benefit Payer (November 2021)

Auditor General Operational Audit of NICA (October 2023)

Medicaid Settlement Agreement (December 2022)

NICA Report on Actuarial Soundness (September 2024)

Legislatively Mandated Report (January 2026)

U.S. ex. rel. Arven v. Florida Birth-Related Neurological Injury Compensation Association, 2020 WL 5540367 (S.D. Fla.
September 8, 2020)

U.S. ex. rel. Arven v. Florida Birth-Related Neurological Injury Compensation Association, 2022 WL 1180142 (11th
Cir. April 22, 2022)

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11
CS/HB 1291
BILL HISTORY
STAFF
DIRECTOR/ ANALYSIS
COMMITTEE REFERENCE ACTION DATE POLICY CHIEF PREPARED BY
Insurance & Banking 17 Y, 0 N 1/29/2026 Brackett Miguez
Subcommittee
State Administration Budget 11 Y, 0 N, As CS 2/12/2026 Topp Helpling
Subcommittee
THE CHANGES ADOPTED BY THE • Removes the increase to the NICA reserve in the Insurance Regulatory
COMMITTEE: Trust Fund from $50 million to the current reserve of $20 million.
Commerce Committee Hamon Miguez

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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S

CS/HB 1291 2026

1 A bill to be entitled
2 An act relating to the Florida Birth-Related
3 Neurological Injury Compensation Association; amending
4 s. 409.910, F.S.; requiring the agency to recover the
5 full amount of medical assistance from the
6 neurological injury compensation association; amending
7 s. 766.302, F.S.; providing and revising definitions;
8 amending s. 766.303, F.S.; revising the exclusiveness
9 of remedy under the Florida Birth-Related Neurological
10 Injury Compensation Plan; amending s. 766.305, F.S.;
11 revising provisions relating to filing claims;
12 amending s. 766.309, F.S.; conforming a cross-
13 reference; amending s. 766.31, F.S.; revising items
14 that are eligible for an award providing compensation;
15 requiring compensation to be provided for certain
16 actual expenses; requiring compensation for the costs
17 of major medical health coverage; requiring the plan
18 to reimburse certain payments made for services
19 provided; exempting expenses for professional
20 custodial care in certain circumstances; requiring
21 that, upon entry of a final order for compensation,
22 parents or legal guardians obtain private health
23 insurance or submit an application for the Medicare
24 program; amending s. 766.314, F.S.; requiring the
25 directors to maintain a plan of operation; requiring

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26 certain assessments to be paid into the Florida Birth-
27 Related Neurological Injury Compensation Association
28 at certain times for certain purposes; requiring the
29 plan of operation to include a provision for fraud;
30 removing obsolete provisions; revising provisions
31 relating to an actuarial valuation of the plan;
32 requiring the association to submit quarterly
33 estimates; requiring the association to state whether
34 the plan is actuarially sound; authorizing a transfer
35 of funds to the association from the Insurance
36 Regulatory Trust Fund if the plan is not actuarially
37 sound; requiring the association to require each
38 entity to issue casualty insurance and pay an annual
39 assessment; providing requirements for annual
40 assessments; requiring an increase in assessments
41 after certain findings; requiring the association to
42 determine whether the plan is actuarially sound after
43 certain revisions; providing criteria for such
44 determination; requiring notification to the Governor,
45 Legislature, and Office of Insurance Regulation after
46 certain findings; amending s. 766.315, F.S.; revising
47 membership of the directors of the association;
48 providing an effective date.
49
50 Be It Enacted by the Legislature of the State of Florida:

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51
52 Section 1. Paragraph (a) of subsection (7) of section
53 409.910, Florida Statutes, is amended to read:
54 409.910 Responsibility for payments on behalf of Medicaid-
55 eligible persons when other parties are liable.—
56 (7) The agency shall recover the full amount of all
57 medical assistance provided by Medicaid on behalf of the
58 recipient to the full extent of third-party benefits.
59 (a) Recovery of such benefits shall be collected directly
60 from:
61 1. Any third party;
62 2. The recipient or legal representative, if he or she has
63 received third-party benefits;
64 3. The provider of a recipient's medical services if
65 third-party benefits have been recovered by the provider;
66 notwithstanding any provision of this section, to the contrary,
67 however, no provider shall be required to refund or pay to the
68 agency any amount in excess of the actual third-party benefits
69 received by the provider from a third-party payor for medical
70 services provided to the recipient; or
71 4. Any person who has received the third-party benefits;
72 or
73 5. The Florida Birth-Related Neurological Injury
74 Compensation Association for plan participant costs incurred
75 under s. 766.31.

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76
77 The provisions of this subsection do not apply to any proceeds
78 received by the state, or any agency thereof, pursuant to a
79 final order, judgment, or settlement agreement, in any matter in
80 which the state asserts claims brought on its own behalf, and
81 not as a subrogee of a recipient, or under other theories of
82 liability. The provisions of this subsection do not apply to any
83 proceeds received by the state, or an agency thereof, pursuant
84 to a final order, judgment, or settlement agreement, in any
85 matter in which the state asserted both claims as a subrogee and
86 additional claims, except as to those sums specifically
87 identified in the final order, judgment, or settlement agreement
88 as reimbursements to the recipient as expenditures for the named
89 recipient on the subrogation claim.
90 Section 2. Section 766.302, Florida Statutes, is amended
91 to read:
92 766.302 Definitions; ss. 766.301-766.316.—As used in ss.
93 766.301-766.316, the term:
94 (1) "Actuarially sound" means that the total plan assets
95 available to fund future liabilities are equal to or greater
96 than 90 percent of the present value of total estimated
97 liabilities excluding any risk margin.
98 (2)(4) "Administrative law judge" means an administrative
99 law judge appointed by the division.
100 (3)(1) "Association" means the Florida Birth-Related

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101 Neurological Injury Compensation Association established in s.
102 766.315 to administer the Florida Birth-Related Neurological
103 Injury Compensation Plan and the plan of operation established
104 in s. 766.314.
105 (4)(2) "Birth-related neurological injury" means injury to
106 the brain or spinal cord of a live infant weighing at least
107 2,500 grams for a single gestation or, in the case of a multiple
108 gestation, a live infant weighing at least 2,000 grams at birth
109 caused by oxygen deprivation or mechanical injury occurring in
110 the course of labor, delivery, or resuscitation in the immediate
111 postdelivery period in a hospital, which renders the infant
112 permanently and substantially mentally and physically impaired.
113 This definition shall apply to live births only and shall not
114 include disability or death caused by genetic or congenital
115 abnormality.
116 (5)(3) "Claimant" means any person who files a claim
117 pursuant to s. 766.305 for compensation for a birth-related
118 neurological injury to an infant. Such a claim may be filed by
119 any legal representative on behalf of an injured infant; and, in
120 the case of a deceased infant, the claim may be filed by an
121 administrator, personal representative, or other legal
122 representative thereof.
123 (6)(5) "Division" means the Division of Administrative
124 Hearings of the Department of Management Services.
125 (7)(9) "Family member" means a father, mother, or legal

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126 guardian.
127 (8)(10) "Family residential or custodial care" means care
128 normally rendered by trained professional attendants which is
129 beyond the scope of child care duties, but which is provided by
130 family members. Family members who provide nonprofessional
131 residential or custodial care may not be compensated under this
132 act for care that falls within the scope of child care duties
133 and other services normally and gratuitously provided by family
134 members. Family residential or custodial care shall be performed
135 only at the direction and control of a physician when such care
136 is medically necessary. Reasonable charges for expenses for
137 family residential or custodial care provided by a family member
138 shall be determined as follows:
139 (a) If the family member is not employed, the per-hour
140 value equals the federal minimum hourly wage.
141 (b) If the family member is employed and elects to leave
142 that employment to provide such care, the per-hour value of that
143 care shall equal the rates established by Medicaid for private
144 duty services provided by a home health aide. A family member or
145 a combination of family members providing care in accordance
146 with this definition may not be compensated for more than a
147 total of 10 hours per day. Family care is in lieu of
148 professional residential or custodial care, and no professional
149 residential or custodial care may be awarded for the period of
150 time during the day that family care is being provided.

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151 (9)(6) "Hospital" means any hospital licensed in Florida.
152 (10) "Participant" means the person who suffered a birth-
153 related neurological injury as an infant and who accepted
154 compensation under the plan by final order entered by an
155 administrative law judge pursuant to s. 766.309.
156 (11)(7) "Participating physician" means a physician
157 licensed in Florida to practice medicine who practices
158 obstetrics or performs obstetrical services either full time or
159 part time and who had paid or was exempted from payment at the
160 time of the injury the assessment required for participation in
161 the birth-related neurological injury compensation plan for the
162 year in which the injury occurred. Such term shall not apply to
163 any physician who practices medicine as an officer, employee, or
164 agent of the Federal Government.
165 (12)(8) "Plan" means the Florida Birth-Related
166 Neurological Injury Compensation Plan established under s.
167 766.303.
168 (13) "Risk margin" means an additional, explicit allowance
169 above the best-estimate reserve to reflect uncertainty in future
170 claim payments, including variation in claimant life expectancy
171 and the number and cost of pending or unreported claims. The
172 risk margin is not included in the reserve amount used to
173 calculate the funding ratio.
174 Section 3. Section 766.303, Florida Statutes, is amended
175 to read:

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176 766.303 Florida Birth-Related Neurological Injury
177 Compensation Plan; exclusiveness of remedy.—
178 (1) There is established the Florida Birth-Related
179 Neurological Injury Compensation Plan for the purpose of
180 providing compensation, irrespective of fault, for birth-related
181 neurological injuries injury claims. Such plan shall apply to
182 births occurring on or after January 1, 1989, and shall be
183 administered by the Florida Birth-Related Neurological Injury
184 Compensation Association.
185 (2) The rights and remedies granted by this plan on
186 account of a birth-related neurological injury shall exclude all
187 other rights and remedies of such infant, her or his personal
188 representative, family members parents, dependents, and next of
189 kin, at common law or otherwise, against any person or entity
190 directly involved with the labor, delivery, or immediate
191 postdelivery resuscitation during which such injury occurs,
192 arising out of or related to a medical negligence claim with
193 respect to such injury; except that a civil action shall not be
194 foreclosed where there is clear and convincing evidence of bad
195 faith or malicious purpose or willful and wanton disregard of
196 human rights, safety, or property, provided that such suit is
197 filed prior to and in lieu of payment of an award under ss.
198 766.301-766.316. Such suit shall be filed before the award of
199 the division becomes conclusive and binding as provided for in
200 s. 766.311.

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201 (3) Sovereign immunity is hereby waived on behalf of the
202 Florida Birth-Related Neurological Injury Compensation
203 Association solely to the extent necessary to assure payment of
204 compensation as provided in s. 766.31.
205 (4) The association shall administer the plan in a manner
206 that promotes and protects the health and best interests of
207 participants children with birth-related neurological injuries.
208 Section 4. Subsections (1) and (3) of section 766.305,
209 Florida Statutes, are amended to read:
210 766.305 Filing of claims and responses; medical
211 disciplinary review.—
212 (1) All claims filed for compensation under the plan shall
213 commence by the claimant filing with the division a petition
214 that seeking compensation. Such petition shall include the
215 following information:
216 (a) The name and address of the legal representative and
217 the basis for her or his representation of the injured infant.
218 (b) The name and address of the injured infant.
219 (c) The name and address of any physician providing
220 obstetrical services who was present at the birth and the name
221 and address of the hospital at which the birth occurred.
222 (d) A description of the disability for which the claim is
223 made.
224 (e) The time and place the injury occurred.
225 (f) A brief statement of the facts and circumstances

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226 surrounding the injury and giving rise to the claim.
227 (3) The claimant shall furnish to the Florida Birth-
228 Related Neurological Injury Compensation association the
229 following information, which must be filed with the association
230 within 10 days after the filing of the petition as set forth in
231 subsection (1):
232 (a) All available relevant medical records relating to the
233 birth-related neurological injury and a list identifying any
234 unavailable records known to the claimant and the reasons for
235 the records' unavailability.
236 (b) Appropriate assessments, evaluations, and prognoses
237 and such other records and documents as are reasonably necessary
238 for the determination of the amount of compensation to be paid
239 to, or on behalf of, the injured infant on account of the birth-
240 related neurological injury.
241 (c) Documentation of expenses and services incurred to
242 date which identifies any payment made for such expenses and
243 services and the payor.
244 (d) Documentation of any applicable private or
245 governmental source of services or reimbursement relative to the
246 impairments.
247
248 The information required by paragraphs (a)-(d) shall remain
249 confidential and exempt under the provisions of s.
250 766.315(5)(b).

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251 Section 5. Paragraph (a) of subsection (1) of section
252 766.309, Florida Statutes, is amended to read:
253 766.309 Determination of claims; presumption; findings of
254 administrative law judge binding on participants.—
255 (1) The administrative law judge shall make the following
256 determinations based upon all available evidence:
257 (a) Whether the injury claimed is a birth-related
258 neurological injury. If the claimant has demonstrated, to the
259 satisfaction of the administrative law judge, that the infant
260 has sustained a brain or spinal cord injury caused by oxygen
261 deprivation or mechanical injury and that the infant was thereby
262 rendered permanently and substantially mentally and physically
263 impaired, a rebuttable presumption shall arise that the injury
264 is a birth-related neurological injury as defined in s. 766.302
265 s. 766.302(2).
266 Section 6. Section 766.31, Florida Statutes, is amended to
267 read:
268 766.31 Administrative law judge awards for birth-related
269 neurological injuries; notice of award.—
270 (1) Upon determining that an infant has sustained a birth-
271 related neurological injury and that obstetrical services were
272 delivered by a participating physician at the birth, the
273 administrative law judge shall make an award providing
274 compensation for the following items relative to such injury:

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275 (a) Actual expenses since date of birth for medically
276 necessary and reasonable:
277 1. Medical and hospital care and services.,
278 2. Habilitative services. and training,
279 3. Dental services.
280 4. Family residential or custodial care.,
281 5. Professional residential care., and
282 6. Professional custodial care. and service,
283 7. for medically necessary Drugs.,
284 8. Special equipment., and facilities, and
285 9. for Related travel.
286 (b) At a minimum, compensation must be provided for the
287 following actual expenses:
288 1. Psychotherapeutic services for A total annual benefit
289 of up to $10,000 for immediate family members and other
290 relatives who have resided reside with the participant, which
291 are infant for psychotherapeutic services obtained from a
292 psychiatrist licensed under chapter 458 or chapter 459, a
293 provider providers licensed under chapter 490 or chapter 491, or
294 a psychiatrist or provider who has equivalent licensure by
295 another jurisdiction. This benefit for such family members and
296 relatives shall be up to a total of $10,000 annually during the
297 participant's lifetime and up to a total of $20,000 subsequent
298 to the participant's death.
299 2. For the life of the participant child, providing family

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300 members parents or legal guardians with a reliable method of
301 transporting transportation for the care of the participant and
302 child or reimbursing the cost of upgrading an existing vehicle
303 to accommodate the participant's wheelchair and medically
304 necessary equipment child's needs when it becomes medically
305 necessary for wheelchair transportation. The mode of
306 transportation must take into account the special accommodations
307 required for the specific child. The plan may not limit such
308 transportation assistance based on the participant's child's age
309 or weight. The plan must replace any vehicles vans purchased by
310 the plan every 7 years or 150,000 miles, whichever comes first.
311 3. Housing assistance of up to $100,000 for the life of
312 the participant child, including, but not limited to, a down
313 payment on a new home, moving expenses, and home construction
314 and modification costs.
315 4. Legal costs associated with establishing and
316 maintaining guardianship for a participant.
317 (c) The costs of major medical health coverage for the
318 participant obtained pursuant to subsection (3), including, but
319 not limited to, the premium and out-of-pocket costs. For
320 participants enrolled in Florida Medicaid, the plan must
321 reimburse fee-for-service paid claims and capitation payments,
322 as applicable, for services to persons enrolled in the Medicaid
323 program for compensation pursuant to this section and for the
324 administrative and support costs associated with the provided

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325 medical assistance. Such funds shall be credited to the Agency
326 for Health Care Administration Medical Care Trust Fund.
327 (d)(b) However, the following expenses are not subject to
328 compensation:
329 1. Expenses for items or services that the infant
330 participant has received, or is entitled to receive, under the
331 laws of any state or the Federal Government, except to the
332 extent such exclusion may be prohibited by federal law.
333 2. Expenses for items or services that the participant
334 infant has received, or is contractually entitled to receive,
335 from any prepaid health plan, health maintenance organization,
336 or other private insuring entity.
337 3. Expenses for which the participant infant has received
338 reimbursement, or for which the participant infant is entitled
339 to receive reimbursement, under the laws of any state or the
340 Federal Government, except to the extent such exclusion may be
341 prohibited by federal law.
342 4. Expenses for which the participant infant has received
343 reimbursement, or for which the participant infant is
344 contractually entitled to receive reimbursement, pursuant to the
345 provisions of any health or sickness insurance policy or other
346 private insurance program.
347 5. Expenses for professional custodial care provided by a
348 family member while:
349 a. Care and supervision of the participant is

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350 simultaneously being provided by another person or entity; or
351 b. The family member receives compensation from another
352 source for work performed during the same time for which
353 compensation is sought from the association.
354 (e)(c) Expenses included under paragraphs paragraph (a)
355 and (b) are limited to reasonable charges prevailing in the same
356 community for similar treatment of injured persons when such
357 treatment is paid for by the injured person.
358 (f)1. A family member The parents or legal guardians
359 receiving benefits under the plan may file a petition with the
360 division of Administrative Hearings to dispute the amount of
361 actual expenses reimbursed or a denial of reimbursement.
362 2. In the case of an alleged overpayment of an expense
363 reimbursement by the association to a family member, if the
364 family member does not agree that an overpayment has occurred,
365 the association may file a petition for division review of the
366 overpayment for a determination of the amount, if any, to be
367 recouped by the association.
368 (g)1.(d)1.a. Periodic payments of an award to the family
369 members parents or legal guardians of the participant infant
370 found to have sustained a birth-related neurological injury,
371 which award may not exceed $100,000. However, at the discretion
372 of the administrative law judge, such award may be made in a
373 lump sum. Beginning on January 1, 2021, the award may not exceed
374 $250,000, and each January 1 thereafter, the maximum award

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375 authorized under this paragraph shall increase by 3 percent.
376 b. Parents or legal guardians who received an award
377 pursuant to this section before January 1, 2021, must receive a
378 retroactive payment in an amount sufficient to bring the total
379 award paid to the parents or legal guardians pursuant to sub-
380 subparagraph a. to $250,000. This additional payment may be made
381 in a lump sum or in periodic payments as designated by the
382 parents or legal guardians and must be paid by July 1, 2021.
383 2.a. Death benefit for the participant infant in an amount
384 of $50,000.
385 b. Parents or legal guardians who received an award
386 pursuant to this section, and whose child died since the
387 inception of the program, must receive a retroactive payment in
388 an amount sufficient to bring the total award paid to the
389 parents or legal guardians pursuant to sub-subparagraph a. to
390 $50,000. This additional payment may be made in a lump sum or in
391 periodic payments as designated by the parents or legal
392 guardians and must be paid by July 1, 2021.
393 (h)(e) Reasonable expenses incurred in connection with the
394 filing of a claim under ss. 766.301-766.316, including
395 reasonable attorney's fees, which shall be subject to the
396 approval and award of the administrative law judge. In
397 determining an award for attorney's fees, the administrative law
398 judge shall consider the following factors:
399 1. The time and labor required, the novelty and difficulty

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400 of the questions involved, and the skill requisite to perform
401 the legal services properly.
402 2. The fee customarily charged in the locality for similar
403 legal services.
404 3. The time limitations imposed by the claimant or the
405 circumstances.
406 4. The nature and length of the professional relationship
407 with the claimant.
408 5. The experience, reputation, and ability of the lawyer or
409 lawyers performing services.
410 6. The contingency or certainty of a fee.
411
412 Should there be a final determination of compensability, and the
413 claimants accept an award under this section, the claimants
414 shall are not be liable for any expenses, including attorney
415 fees, incurred in connection with the filing of a claim under
416 ss. 766.301-766.316 other than those expenses awarded under this
417 section.
418 (2) The award shall require the immediate payment of
419 expenses previously incurred and shall require that future
420 expenses be paid as incurred.
421 (3) A family member must continuously maintain
422 comprehensive major medical health coverage for the participant.
423 (a) If the participant does not have such coverage at the
424 time of entry of a final order by an administrative law judge

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425 approving a claim for compensation, the family member must
426 obtain coverage within 60 days after entry of such order or
427 apply for Medicaid coverage within 30 days after entry of such
428 order.
429 (b) If the participant is determined to be ineligible for
430 Medicaid, the family member must obtain other coverage within 60
431 days after receiving the Medicaid application denial.
432 (c) A family member of an individual who is a participant
433 on June 30, 2026, must obtain the required coverage for the
434 participant by January 1, 2027.
435 (4)(3) A copy of the award shall be sent immediately by
436 registered or certified mail to each person served with a copy
437 of the petition under s. 766.305(2).
438 Section 7. Section 766.314, Florida Statutes, is amended
439 to read:
440 766.314 Assessments; plan of operation.—
441 (1) The assessments established pursuant to this section
442 shall be used to finance the Florida Birth-Related Neurological
443 Injury Compensation Plan.
444 (2) The assessments and appropriations dedicated to the
445 plan shall be administered by the Florida Birth-Related
446 Neurological Injury Compensation Association established in s.
447 766.315, in accordance with the following requirements:
448 (a) On or before July 1, 1988, The directors of the
449 association shall maintain submit to the Department of Insurance

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450 for review a plan of operation which shall provide for the
451 efficient administration of the plan and for prompt processing
452 of claims against and awards made on behalf of the plan. The
453 plan of operation shall include provision for:
454 1. Establishment of necessary facilities;
455 2. Management of the funds collected on behalf of the
456 plan;
457 3. Processing of claims against the plan;
458 4. Assessment of the persons and entities listed in
459 subsections (4) and (7) (5) to pay awards and expenses, which
460 assessments shall be on an actuarially sound basis subject to
461 the limits set forth in subsections (4) and (5);
462 5. A fraud and overpayment prevention and detection
463 program; and
464 6.5. Any other matters necessary for the efficient
465 operation of the birth-related neurological injury compensation
466 plan.
467 (b) Amendments to the plan of operation may be made by the
468 directors of the plan, subject to the approval of the office of
469 Insurance Regulation of the Financial Services Commission.
470 (3) All assessments shall be deposited with the Florida
471 Birth-Related Neurological Injury Compensation association. The
472 funds collected by the association and any income therefrom
473 shall be disbursed only for the payment of awards under ss.
474 766.301-766.316 and for the payment of the reasonable expenses

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475 of administering the plan.
476 (4) The following persons and entities shall pay into the
477 association assessments as follows an initial assessment in
478 accordance with the plan of operation:
479 (a)1. On or before October 1, 1988, Each hospital licensed
480 under chapter 395 shall pay an initial assessment of $50 per
481 infant delivered in that the hospital during the prior calendar
482 year, as reported to the Agency for Health Care Administration;
483 provided, however, that a hospital owned or operated by the
484 state or a county, special taxing district, or other political
485 subdivision of the state shall not be required to pay the
486 initial assessment or any assessment required by this subsection
487 or subsection (7) (5). The term "infant delivered" includes live
488 births and not stillbirths, but the term does not include
489 infants delivered by employees or agents of the board of
490 trustees of a state university, those born in a teaching
491 hospital as defined in s. 408.07, or those born in a teaching
492 hospital as defined in s. 395.806 that have been deemed by the
493 association as being exempt from assessments since fiscal year
494 1997 to fiscal year 2001. The initial assessment and any
495 assessment imposed pursuant to subsection (7) (5) may not
496 include any infant born to a charity patient (as defined by rule
497 of the Agency for Health Care Administration) or born to a
498 patient for whom the hospital receives Medicaid reimbursement,
499 if the sum of the annual charges for charity patients plus the

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500 annual Medicaid contractuals of the hospital exceeds 10 percent
501 of the total annual gross operating revenues of the hospital.
502 The hospital is responsible for documenting, to the satisfaction
503 of the association, the exclusion of any birth from the
504 computation of the assessment. Upon demonstration of financial
505 need by a hospital, the association may provide for installment
506 payments of assessments.
507 2. Assessments shall be due, and hospitals shall pay, all
508 assessments required under this section by December 31 of the
509 calendar year immediately subsequent to the birth year.
510 (b)1.a. On or before October 15, 1988, All physicians
511 licensed pursuant to chapter 458 or chapter 459 as of October 1,
512 1988, other than participating physicians, shall be assessed an
513 annual initial assessment of $250.,
514 b. Payment for all assessments required under this
515 paragraph is due on or before December 31 of each year which
516 must be paid no later than December 1, 1988.
517 2. Any such physician who becomes licensed after September
518 30, 1988, and before January 1, 1989, shall pay into the
519 association an initial assessment of $250 upon licensure.
520 3. Any such physician who becomes licensed on or after
521 January 1, 1989, shall pay an initial assessment equal to the
522 most recent assessment made pursuant to this paragraph,
523 paragraph (5)(a), or paragraph (7)(b).
524 2.4. However, if the physician is a physician specified in

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525 this subparagraph, the assessment is not applicable:
526 a. A resident physician, assistant resident physician, or
527 intern in an approved postgraduate training program, as defined
528 by the Board of Medicine or the Board of Osteopathic Medicine by
529 rule;
530 b. A retired physician who has withdrawn from the practice
531 of medicine but who maintains an active license as evidenced by
532 an affidavit filed with the Department of Health. Prior to
533 reentering the practice of medicine in this state, a retired
534 physician as herein defined must notify the Board of Medicine or
535 the Board of Osteopathic Medicine and pay the appropriate
536 assessments pursuant to this section;
537 c. A physician who holds a limited license pursuant to s.
538 458.317 and who is not being compensated for medical services;
539 d. A physician who is employed full time by the United
540 States Department of Veterans Affairs and whose practice is
541 confined to United States Department of Veterans Affairs
542 hospitals; or
543 e. A physician who is a member of the Armed Forces of the
544 United States and who meets the requirements of s. 456.024.
545 f. A physician who is employed full time by the State of
546 Florida and whose practice is confined to state-owned
547 correctional institutions, a county health department, or state-
548 owned mental health or developmental services facilities, or who
549 is employed full time by the Department of Health.

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550 (c)1. On or before December 1, 1988, Each physician
551 licensed pursuant to chapter 458 or chapter 459 who wishes to
552 participate in the Florida Birth-Related Neurological Injury
553 Compensation Plan and who otherwise qualifies as a participating
554 physician under ss. 766.301-766.316 shall pay an annual initial
555 assessment of $5,000 and any assessment required under paragraph
556 (7)(d), if assessed. However, if the physician is either a
557 resident physician, assistant resident physician, or intern in
558 an approved postgraduate training program, as defined by the
559 Board of Medicine or the Board of Osteopathic Medicine by rule,
560 and is supervised in accordance with program requirements
561 established by the Accreditation Council for Graduate Medical
562 Education or the American Osteopathic Association by a physician
563 who is participating in the plan, such resident physician,
564 assistant resident physician, or intern is deemed to be a
565 participating physician without the payment of the assessment.
566 Participating physicians also include any employee of the board
567 of trustees of a state university who has paid the assessment
568 required by this paragraph and, if assessed, paragraph (7)(d)
569 (5)(a), and any certified nurse midwife supervised by such
570 employee. Participating physicians include any certified nurse
571 midwife who has paid 50 percent of the physician assessment
572 required by this paragraph and, if assessed, paragraph (7)(d),
573 (5)(a) and who is supervised by a participating physician who
574 has paid the assessment required by this paragraph and, if

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575 assessed, paragraph (7)(d) (5)(a). Supervision for nurse
576 midwives shall require that the supervising physician will be
577 easily available and have a prearranged plan of treatment for
578 specified patient problems which the supervised certified nurse
579 midwife may carry out in the absence of any complicating
580 features. Any physician who elects to participate in such plan
581 on or after January 1, 1989, who was not a participating
582 physician at the time of such election to participate and who
583 otherwise qualifies as a participating physician under ss.
584 766.301-766.316 shall pay an additional initial assessment equal
585 to the most recent assessment made pursuant to this paragraph,
586 paragraph (5)(a), or paragraph (7)(b).
587 2. Payment of assessments required by this paragraph is
588 due on or before December 31 of each year for qualification as a
589 participating physician during the next calendar year. If
590 payment of the assessments is received by the association on or
591 before January 31 of any calendar year, the physician shall
592 qualify as a participating physician for that entire calendar
593 year. If the payment is received after January 31, the physician
594 shall qualify as a participating physician for that calendar
595 year only from the date the payment was received by the
596 association.
597 (d) Any hospital located in a county with a population in
598 excess of 1.1 million as of January 1, 2003, as determined by
599 the Agency for Health Care Administration under the Health Care

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600 Responsibility Act, may elect to pay the assessments required by
601 paragraph (c) fee for the participating physician and the
602 certified nurse midwife if the hospital first determines that
603 the primary motivating purpose for making such payment is to
604 ensure coverage for the hospital's patients under the provisions
605 of ss. 766.301-766.316; however, no hospital may restrict any
606 participating physician or nurse midwife, directly or
607 indirectly, from being on the staff of hospitals other than the
608 staff of the hospital making the payment. Each hospital shall
609 file with the association an affidavit setting forth
610 specifically the reasons why the hospital elected to make the
611 payment on behalf of each participating physician and certified
612 nurse midwife. The payments authorized under this paragraph
613 shall be in addition to the assessment set forth in paragraph
614 (5)(a).
615 (5)(a) Beginning January 1, 1990, the persons and entities
616 listed in paragraphs (4)(b) and (c), except those persons or
617 entities who are specifically excluded from said provisions, as
618 of the date determined in accordance with the plan of operation,
619 taking into account persons licensed subsequent to the payment
620 of the initial assessment, shall pay an annual assessment in the
621 amount equal to the initial assessments provided in paragraphs
622 (4)(b) and (c). If payment of the annual assessment by a
623 physician is received by the association by January 31 of any
624 calendar year, the physician shall qualify as a participating

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625 physician for that entire calendar year. If the payment is
626 received after January 31 of any calendar year, the physician
627 shall qualify as a participating physician for that calendar
628 year only from the date the payment was received by the
629 association. On January 1, 1991, and on each January 1
630 thereafter, the association shall determine the amount of
631 additional assessments necessary pursuant to subsection (7), in
632 the manner required by the plan of operation, subject to any
633 increase determined to be necessary by the Office of Insurance
634 Regulation pursuant to paragraph (7)(b). On July 1, 1991, and on
635 each July 1 thereafter, the persons and entities listed in
636 paragraphs (4)(b) and (c), except those persons or entities who
637 are specifically excluded from said provisions, shall pay the
638 additional assessments which were determined on January 1.
639 Beginning January 1, 1990, the entities listed in paragraph
640 (4)(a), including those licensed on or after October 1, 1988,
641 shall pay an annual assessment of $50 per infant delivered
642 during the prior calendar year. The additional assessments which
643 were determined on January 1, 1991, pursuant to the provisions
644 of subsection (7) shall not be due and payable by the entities
645 listed in paragraph (4)(a) until July 1.
646 (b) If the assessments collected pursuant to subsection
647 (4) and the appropriation of funds provided by s. 76, chapter
648 88-1, Laws of Florida, as amended by s. 41, chapter 88-277, Laws
649 of Florida, to the plan from the Insurance Regulatory Trust Fund

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650 are insufficient to maintain the plan on an actuarially sound
651 basis, there is hereby appropriated for transfer to the
652 association from the Insurance Regulatory Trust Fund an
653 additional amount of up to $20 million.
654 (c)1. Taking into account the assessments collected
655 pursuant to subsection (4) and appropriations from the Insurance
656 Regulatory Trust Fund, if required to maintain the plan on an
657 actuarially sound basis, the Office of Insurance Regulation
658 shall require each entity licensed to issue casualty insurance
659 as defined in s. 624.605(1)(b), (k), and (q) to pay into the
660 association an annual assessment in an amount determined by the
661 office pursuant to paragraph (7)(a), in the manner required by
662 the plan of operation.
663 2. All annual assessments shall be made on the basis of
664 net direct premiums written for the business activity which
665 forms the basis for each such entity's inclusion as a funding
666 source for the plan in the state during the prior year ending
667 December 31, as reported to the Office of Insurance Regulation,
668 and shall be in the proportion that the net direct premiums
669 written by each carrier on account of the business activity
670 forming the basis for its inclusion in the plan bears to the
671 aggregate net direct premiums for all such business activity
672 written in this state by all such entities.
673 3. No entity listed in this paragraph shall be
674 individually liable for an annual assessment in excess of 0.25

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675 percent of that entity's net direct premiums written.
676 4. Casualty insurance carriers shall be entitled to
677 recover their initial and annual assessments through a surcharge
678 on future policies, a rate increase applicable prospectively, or
679 a combination of the two.
680 (5)(6)(a) The association shall make all assessments
681 required by this section, except initial assessments of
682 physicians newly licensed by the Department of Health, which
683 assessments shall be made by the Department of Health, and
684 except assessments of casualty insurers pursuant to paragraph
685 (7)(c) subparagraph (5)(c)1., which assessments will be made by
686 the office of Insurance Regulation. The Department of Health
687 shall provide the association, in an electronic format, with a
688 monthly report of the names and license numbers of all
689 physicians licensed under chapter 458 or chapter 459.
690 (b)1. The association may enforce collection of
691 assessments required to be paid pursuant to ss. 766.301-766.316
692 by suit filed in county court, or in circuit court if the amount
693 due could exceed the jurisdictional limits of county court. The
694 association is entitled to an award of attorney fees, costs, and
695 interest upon the entry of a judgment against a physician for
696 failure to pay such assessment, with such interest accruing
697 until paid. Notwithstanding chapters 47 and 48, the association
698 may file such suit in either Leon County or the county of the
699 residence of the defendant. The association shall notify the

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700 Department of Health and the applicable board of any unpaid
701 final judgment against a physician within 7 days after the entry
702 of final judgment.
703 2. The Department of Health, upon notification by the
704 association that an assessment has not been paid and that there
705 is an unsatisfied judgment against a physician, shall refuse to
706 renew any license issued to such physician under chapter 458 or
707 chapter 459 until the association notifies the Department of
708 Health that the judgment is satisfied in full.
709 (c) The Agency for Health Care Administration shall, upon
710 notification by the association that an assessment has not been
711 timely paid, enforce collection of such assessments required to
712 be paid by hospitals pursuant to ss. 766.301-766.316. Failure of
713 a hospital to pay such assessment is grounds for disciplinary
714 action pursuant to s. 395.1065 notwithstanding any law to the
715 contrary.
716 (6)(9)(a) Within 60 days after a claim is filed, the
717 association shall estimate the present value of the total cost
718 of the claim, including the estimated amount to be paid to the
719 claimant, the claimant's attorney, the attorney's fees of the
720 association incident to the claim, and any other expenses that
721 are reasonably anticipated to be incurred by the association in
722 connection with the adjudication and payment of the claim. For
723 purposes of this estimate, the association should include the
724 maximum benefits for noneconomic damages.

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725 (b) The association shall revise these estimates quarterly
726 based upon the actual costs incurred and any additional
727 information that becomes available to the association since the
728 last review of this estimate. The estimate shall be reduced by
729 any amounts paid by the association that were included in the
730 current estimate. The association must submit such quarterly
731 estimates to the office within 10 business days after
732 completion.
733 (c) After the revisions of estimates required under
734 paragraph (b), each quarter, the association shall calculate
735 whether the plan is actuarially sound. If the association's
736 calculation indicates that the plan is not actuarially sound,
737 the association shall immediately notify the office as described
738 in subsection (7). The office must review the association's
739 calculations and, within 60 days after the association's
740 notification, determine whether to initiate an actuarial
741 valuation as described in subsection (7), and notify the
742 association of its determination. At a minimum, the office shall
743 make its determination based on the degree to which the
744 association's calculations indicate that the plan is not
745 actuarially sound, the direction and consistency of recent
746 trends in the calculations of the plan's actuarial soundness,
747 and the length of time since the most recent actuarial valuation
748 conducted by the office and until the next biennial valuation.
749 The office shall initiate such actuarial valuation within 30

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750 days after its determination that there is a need for a
751 valuation.
752 1. If the total of all current estimates equals or exceeds
753 100 percent of the funds on hand and the funds that will become
754 available to the association within the next 12 months from all
755 sources described in subsection (4) and paragraph (5)(a), the
756 association may not accept any new claims without express
757 authority from the Legislature. This section does not preclude
758 the association from accepting any claim if the injury occurred
759 18 months or more before the effective date of this suspension.
760 Within 30 days after the effective date of this suspension, the
761 association shall notify the Governor, the Speaker of the House
762 of Representatives, the President of the Senate, the Office of
763 Insurance Regulation, the Agency for Health Care Administration,
764 and the Department of Health of this suspension.
765 2. Notwithstanding this paragraph, the association is
766 authorized to accept new claims during the 2025-2026 fiscal year
767 if the total of all current estimates exceeds the limits
768 described in subparagraph 1. during that fiscal year. This
769 subparagraph expires July 1, 2026.
770 (d) If any person is precluded from asserting a claim
771 against the association because of paragraph (c), the plan shall
772 not constitute the exclusive remedy for such person, his or her
773 personal representative, parents, dependents, or next of kin.
774 (7)(a) The office of Insurance Regulation shall undertake

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775 an actuarial investigation of the requirements of the plan based
776 on the plan's experience in the first year of operation and any
777 additional relevant information, including without limitation
778 the assets and liabilities of the plan. Pursuant to such
779 investigation, the Office of Insurance Regulation shall
780 establish the rate of contribution of the entities listed in
781 paragraph (5)(c) for the tax year beginning January 1, 1990.
782 Following the initial valuation, the Office of Insurance
783 Regulation shall cause an actuarial valuation to be made of the
784 assets and liabilities of the plan at a minimum no less
785 frequently than biennially on or before December 31 of even-
786 numbered years and as provided in subsection (6). Such valuation
787 shall be based on the assets and liabilities of the plan for the
788 calendar year before the year in which the actuarial valuation
789 is due. The office shall also determine whether the plan has
790 adequate estimated cash flow for the following fiscal year,
791 whether, based on the actuarial valuation, the plan is
792 actuarially sound, and if not, whether the plan is likely to
793 return to actuarial soundness before the next biennial review.
794 Pursuant to the results of such valuations, the Office of
795 Insurance Regulation shall prepare a statement as to the
796 contribution rate applicable to the entities listed in paragraph
797 (5)(c). However, at no time shall the rate be greater than 0.25
798 percent of net direct premiums written.
799 (b) If the office determines that the plan lacks adequate

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CS/HB 1291 2026

800 cash flow for the following fiscal year pursuant to the review
801 in paragraph (a), the office shall authorize a transfer of up to
802 $20 million from the Insurance Regulatory Trust Fund to the
803 association within 30 calendar days.
804 (c)(b) If the office of Insurance Regulation finds that the
805 plan is not likely to return to actuarial soundness before the
806 next biennial review pursuant to the review in paragraph (a),
807 the office shall, within 60 calendar days after this finding,
808 order one or more of the following actions:
809 1. Require each entity licensed to issue casualty
810 insurance as defined in s. 624.605(1)(b), (k), and (q) to pay
811 into the association an annual assessment that is calculated to
812 generate a total amount no greater than the amount required to
813 achieve actuarial soundness of the plan within 5 years after the
814 date of the order, subject to the limitations of this
815 subparagraph.
816 a. These assessments shall be made on the basis of net
817 direct premiums written for the business activity which forms
818 the basis for each such entity's inclusion as a funding source
819 for the plan in the state during the prior year ending December
820 31, as reported to the office, and shall be in the proportion
821 that the net direct premiums written by each carrier on account
822 of the business activity forming the basis for its inclusion in
823 the plan bears to the aggregate net direct premiums for all such
824 business activity written in this state by all such entities.

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825 b. No entity shall be individually liable for an annual
826 assessment in excess of 0.25 percent of that entity's net direct
827 premiums written.
828 c. Casualty insurance carriers shall be entitled to
829 recover their assessments through a surcharge on future
830 policies, a rate increase applicable prospectively, or a
831 combination of the two.
832 d. An assessment under this paragraph must not extend 5
833 years after the date of the order.
834 2. If actuarial soundness cannot be achieved after using
835 the remedy in subparagraph 1., increase the assessments
836 specified in subsection (4) on a proportional basis that is
837 calculated to generate a total amount no greater than the amount
838 required to maintain the plan on an actuarially sound basis.
839 (d) If the office finds that the plan is not actuarially
840 sound pursuant to the review in paragraph (a), the plan shall
841 provide the office with quarterly reports projecting the plan's
842 financial health and, if assessments were ordered by the office
843 under this paragraph, projected revenues for such assessments.
844 (e) If the association finds that the plan is not
845 actuarially sound and the remedies provided under subsection (7)
846 are insufficient to reestablish the actuarial soundness of the
847 plan, the association shall, within 60 days after such finding,
848 notify the Governor, the President of the Senate, the Speaker of
849 the House of Representatives, and the office. If the plan issues

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CS/HB 1291 2026

850 the notice, the association may not accept any new claims
851 without express authority from the Legislature. This paragraph
852 does not preclude the association from accepting any claim if
853 the injury occurred 18 months or more before the effective date
854 of this suspension cannot be maintained on an actuarially sound
855 basis based on the assessments and appropriations listed in
856 subsections (4) and (5), the office shall increase the
857 assessments specified in subsection (4) on a proportional basis
858 as needed.
859 (8) The association shall report to the Legislature its
860 determination as to the annual cost of maintaining the fund on
861 an actuarially sound basis. In making its determination, the
862 association shall consider the recommendations of all hospitals,
863 physicians, casualty insurers, attorneys, consumers, and any
864 associations representing any such person or entity.
865 Notwithstanding the provisions of s. 395.3025, all hospitals,
866 casualty insurers, departments, boards, commissions, and
867 legislative committees shall provide the association with all
868 relevant records and information upon request to assist the
869 association in making its determination. All hospitals shall,
870 upon request by the association, provide the association with
871 information from their records regarding any live birth. Such
872 information shall not include the name of any physician, the
873 name of any hospital employee or agent, the name of the patient,
874 or any other information which will identify the infant involved

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875 in the birth. Such information thereby obtained shall be
876 utilized solely for the purpose of assisting the association and
877 shall not subject the hospital to any civil or criminal
878 liability for the release thereof. Such information shall
879 otherwise be confidential and exempt from the provisions of s.
880 119.07(1) and s. 24(a), Art. I of the State Constitution.
881 Section 8. Subsection (1) of section 766.315, Florida
882 Statutes, is amended to read:
883 766.315 Florida Birth-Related Neurological Injury
884 Compensation Association; board of directors; notice of
885 meetings; report.—
886 (1)(a) The Florida Birth-Related Neurological Injury
887 Compensation Plan shall be governed by a board of seven
888 directors which shall be known as the Florida Birth-Related
889 Neurological Injury Compensation Association. The association is
890 not a state agency, board, or commission. Notwithstanding the
891 provision of s. 15.03, the association is authorized to use the
892 state seal.
893 (b) The directors shall be appointed for staggered terms
894 of 3 years or until their successors are appointed and have
895 qualified; however, a director may not serve for more than 6
896 consecutive years.
897 (c) The directors shall be appointed by the Chief
898 Financial Officer as follows:
899 1. One citizen representative who is not affiliated with

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900 any of the groups identified in subparagraphs 2.-7.
901 2. One representative of participating physicians.
902 3. One representative of hospitals.
903 4. One representative of casualty insurers.
904 5. One representative of physicians other than
905 participating physicians.
906 6. One family member of a participant parent or legal
907 guardian representative of an injured infant under the plan.
908 7. One representative of an advocacy organization for
909 children with disabilities.
910 Section 9. This act shall take effect July 1, 2026.

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COMMERCE COMMITTEE

CS/HB 1291 by Rep. Anderson
Florida Birth-Related Neurological Injury Compensation Association

AMENDMENT SUMMARY
February 26, 2026

Amendment #635371 by Rep. Anderson (strike-all):
• Defines “family care” and removes the 10-hour limit on compensation for care provided
by a family member.
• Adds “supplies” to the list of expenses that may be compensated under NICA.
• Provides that “facility care” and “nursing and home health” are compensable expenses
under NICA, instead of professional custodial care.
• Provides that compensation for psychotherapeutic services for family members,
transportation, housing assistance, and the legal costs associated with guardianship
proceedings are only compensable when medically necessary, if applicable.
• Specifies that certain care expenses are not reimbursable if the care is simultaneously
being provided by another provider.
• Revises and reorders the priority order of the increased assessments that are triggered if
NICA becomes actuarially unsound, as follows:
o The increased assessment on hospitals and participating providers, which are
protected from tort risk by NICA, is given first priority.
o The increased assessment on non-participating providers becomes second
priority.
o The increased assessment on certain casualty insurers is moved from first
priority to third (last) priority.
• Limits assessment increases on providers to 100 percent of the value of the current
regular assessment.
• Prohibits NICA from creating new benefits or expanding existing benefits, if operating
expenses exceed gross revenue.
• Requires NICA to report and publish compensation paid to independent contractors, in
addition to existing financial transparency requirements.
• Restores current law regarding legal rights in the event NICA becomes actuarially
unsound.
COMMITTEE/SUBCOMMITTEE AMENDMENT
Bill No. CS/HB 1291 (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: Commerce Committee
2 Representative Anderson offered the following:
3
4 Amendment (with title amendment)
5 Remove everything after the enacting clause and insert:
6 Section 1. Paragraph (a) of subsection (7) of section
7 409.910, Florida Statutes, is amended to read:
8 409.910 Responsibility for payments on behalf of Medicaid-
9 eligible persons when other parties are liable.—
10 (7) The agency shall recover the full amount of all
11 medical assistance provided by Medicaid on behalf of the
12 recipient to the full extent of third-party benefits.
13 (a) Recovery of such benefits shall be collected directly
14 from:
15 1. Any third party;

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16 2. The recipient or legal representative, if he or she has
17 received third-party benefits;
18 3. The provider of a recipient's medical services if
19 third-party benefits have been recovered by the provider;
20 notwithstanding any provision of this section, to the contrary,
21 however, no provider shall be required to refund or pay to the
22 agency any amount in excess of the actual third-party benefits
23 received by the provider from a third-party payor for medical
24 services provided to the recipient; or
25 4. Any person who has received the third-party benefits;
26 or
27 5. The Florida Birth-Related Neurological Injury
28 Compensation Association for plan participant costs incurred
29 under s. 766.31.
30
31 The provisions of this subsection do not apply to any proceeds
32 received by the state, or any agency thereof, pursuant to a
33 final order, judgment, or settlement agreement, in any matter in
34 which the state asserts claims brought on its own behalf, and
35 not as a subrogee of a recipient, or under other theories of
36 liability. The provisions of this subsection do not apply to any
37 proceeds received by the state, or an agency thereof, pursuant
38 to a final order, judgment, or settlement agreement, in any
39 matter in which the state asserted both claims as a subrogee and
40 additional claims, except as to those sums specifically
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41 identified in the final order, judgment, or settlement agreement
42 as reimbursements to the recipient as expenditures for the named
43 recipient on the subrogation claim.
44 Section 2. Section 766.302, Florida Statutes, is amended
45 to read:
46 766.302 Definitions; ss. 766.301-766.316.—As used in ss.
47 766.301-766.316, the term:
48 (1) "Actuarially sound" means that the total plan assets
49 available to fund future liabilities are equal to or greater
50 than 90 percent of the present value of total estimated
51 liabilities excluding any risk margin.
52 (2)(4) "Administrative law judge" means an administrative
53 law judge appointed by the division.
54 (3)(1) "Association" means the Florida Birth-Related
55 Neurological Injury Compensation Association established in s.
56 766.315 to administer the Florida Birth-Related Neurological
57 Injury Compensation Plan and the plan of operation established
58 in s. 766.314.
59 (4)(2) "Birth-related neurological injury" means injury to
60 the brain or spinal cord of a live infant weighing at least
61 2,500 grams for a single gestation or, in the case of a multiple
62 gestation, a live infant weighing at least 2,000 grams at birth
63 caused by oxygen deprivation or mechanical injury occurring in
64 the course of labor, delivery, or resuscitation in the immediate
65 postdelivery period in a hospital, which renders the infant
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66 permanently and substantially mentally and physically impaired.
67 This definition shall apply to live births only and does shall
68 not include disability or death caused by genetic or congenital
69 abnormality.
70 (5)(3) "Claimant" means any person who files a claim
71 pursuant to s. 766.305 for compensation for a birth-related
72 neurological injury to an infant. Such a claim may be filed by
73 any legal representative on behalf of an injured infant; and, in
74 the case of a deceased infant, the claim may be filed by an
75 administrator, personal representative, or other legal
76 representative thereof.
77 (6)(5) "Division" means the Division of Administrative
78 Hearings of the Department of Management Services.
79 (7)(9) "Family member" means a father, mother, or legal
80 guardian.
81 (8)(10) "Family residential or custodial care" means care
82 normally rendered by trained professional attendants which is
83 beyond the scope of child care duties, but which is provided by
84 family members. Family members who provide nonprofessional
85 residential or custodial care may not be compensated under this
86 act for care that falls within the scope of child care duties
87 and other services normally and gratuitously provided by family
88 members. Family residential or custodial care shall be performed
89 only at the direction and control of a physician when such care
90 is medically necessary. Reasonable charges for expenses for
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91 family residential or custodial care provided by a family member
92 shall be determined as follows:
93 (a) If the family member is not employed, the per-hour
94 value equals the federal minimum hourly wage.
95 (b) If the family member is employed and elects to leave
96 that employment to provide such care, The per-hour value of that
97 care shall equal the rates established by Medicaid for private
98 duty services provided by a home health aide. A family member or
99 a combination of family members providing care in accordance
100 with this definition may not be compensated for more than a
101 total of 10 hours per day. Family care is in lieu of
102 professional residential or custodial care, and no professional
103 residential or custodial care may be awarded for the period of
104 time during the day that family care is being provided.
105 (9)(6) "Hospital" means any hospital licensed in Florida.
106 (10) "Office" means the Office of Insurance Regulation.
107 (11) "Participant" means the person who suffered a birth-
108 related neurological injury as an infant and who accepted
109 compensation under the plan by final order entered by an
110 administrative law judge pursuant to s. 766.309.
111 (12)(7) "Participating physician" means a physician
112 licensed in Florida to practice medicine who practices
113 obstetrics or performs obstetrical services either full time or
114 part time and who had paid or was exempted from payment at the
115 time of the injury the assessment required for participation in
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116 the birth-related neurological injury compensation plan for the
117 year in which the injury occurred. Such term does shall not
118 apply to any physician who practices medicine as an officer,
119 employee, or agent of the Federal Government.
120 (13)(8) "Plan" means the Florida Birth-Related
121 Neurological Injury Compensation Plan established under s.
122 766.303.
123 (14) "Risk margin" means an additional, explicit allowance
124 above the best-estimate reserve to reflect uncertainty in future
125 claim payments, including variation in claimant life expectancy
126 and the number and cost of pending or unreported claims. The
127 risk margin is not included in the reserve amount used to
128 calculate the funding ratio.
129 Section 3. Section 766.303, Florida Statutes, is amended
130 to read:
131 766.303 Florida Birth-Related Neurological Injury
132 Compensation Plan; exclusiveness of remedy.—
133 (1) There is established the Florida Birth-Related
134 Neurological Injury Compensation Plan for the purpose of
135 providing compensation, irrespective of fault, for birth-related
136 neurological injuries injury claims. Such plan shall apply to
137 births occurring on or after January 1, 1989, and shall be
138 administered by the Florida Birth-Related Neurological Injury
139 Compensation Association.

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140 (2) The rights and remedies granted by this plan on
141 account of a birth-related neurological injury shall exclude all
142 other rights and remedies of such infant, her or his personal
143 representative, family members parents, dependents, and next of
144 kin, at common law or otherwise, against any person or entity
145 directly involved with the labor, delivery, or immediate
146 postdelivery resuscitation during which such injury occurs,
147 arising out of or related to a medical negligence claim with
148 respect to such injury; except that a civil action may shall not
149 be foreclosed where there is clear and convincing evidence of
150 bad faith or malicious purpose or willful and wanton disregard
151 of human rights, safety, or property, provided that such suit is
152 filed prior to and in lieu of payment of an award under ss.
153 766.301-766.316. Such suit shall be filed before the award of
154 the division becomes conclusive and binding as provided for in
155 s. 766.311.
156 (3) Sovereign immunity is hereby waived on behalf of the
157 Florida Birth-Related Neurological Injury Compensation
158 Association solely to the extent necessary to assure payment of
159 compensation as provided in s. 766.31.
160 (4) The association shall administer the plan in a manner
161 that promotes and protects the health and best interests of
162 participants children with birth-related neurological injuries.
163 Section 4. Subsections (1) and (3) of section 766.305,
164 Florida Statutes, are amended to read:
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165 766.305 Filing of claims and responses; medical
166 disciplinary review.—
167 (1) All claims filed for compensation under the plan must
168 shall commence by the claimant filing with the division a
169 petition that includes all of seeking compensation. Such
170 petition shall include the following information:
171 (a) The name and address of the legal representative and
172 the basis for her or his representation of the injured infant.
173 (b) The name and address of the injured infant.
174 (c) The name and address of any physician providing
175 obstetrical services who was present at the birth and the name
176 and address of the hospital at which the birth occurred.
177 (d) A description of the disability for which the claim is
178 made.
179 (e) The time and place the injury occurred.
180 (f) A brief statement of the facts and circumstances
181 surrounding the injury and giving rise to the claim.
182 (3) The claimant shall furnish to the Florida Birth-
183 Related Neurological Injury Compensation association the
184 following information, which must be filed with the association
185 within 10 days after the filing of the petition as set forth in
186 subsection (1):
187 (a) All available relevant medical records relating to the
188 birth-related neurological injury and a list identifying any

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189 unavailable records known to the claimant and the reasons for
190 the records' unavailability.
191 (b) Appropriate assessments, evaluations, and prognoses
192 and such other records and documents as are reasonably necessary
193 for the determination of the amount of compensation to be paid
194 to, or on behalf of, the injured infant on account of the birth-
195 related neurological injury.
196 (c) Documentation of expenses and services incurred to
197 date which identifies any payment made for such expenses and
198 services and the payor.
199 (d) Documentation of any applicable private or
200 governmental source of services or reimbursement relative to the
201 impairments.
202
203 The information required by paragraphs (a)-(d) shall remain
204 confidential and exempt under the provisions of s. 766.315(6)(b)
205 s. 766.315(5)(b).
206 Section 5. Paragraph (a) of subsection (1) of section
207 766.309, Florida Statutes, is amended to read:
208 766.309 Determination of claims; presumption; findings of
209 administrative law judge binding on participants.—
210 (1) The administrative law judge shall make the following
211 determinations based upon all available evidence:
212 (a) Whether the injury claimed is a birth-related
213 neurological injury. If the claimant has demonstrated, to the
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214 satisfaction of the administrative law judge, that the infant
215 has sustained a brain or spinal cord injury caused by oxygen
216 deprivation or mechanical injury and that the infant was thereby
217 rendered permanently and substantially mentally and physically
218 impaired, a rebuttable presumption shall arise that the injury
219 is a birth-related neurological injury as defined in s. 766.302
220 s. 766.302(2).
221 Section 6. Section 766.31, Florida Statutes, is amended to
222 read:
223 766.31 Administrative law judge awards for birth-related
224 neurological injuries; notice of award.—
225 (1) Upon determining that an infant has sustained a birth-
226 related neurological injury and that obstetrical services were
227 delivered by a participating physician at the birth, the
228 administrative law judge shall make an award providing
229 compensation for the following items relative to such injury:
230 (a) Actual expenses incurred since the date of birth for
231 medically necessary and reasonable:
232 1. Medical and hospital care and services.,
233 2. Habilitative services. and training,
234 3. Dental services.
235 4. Family residential or custodial care.,
236 5. Facility care. Professional residential, and
237 6. Nursing and home health custodial care. and service,
238 7. for medically necessary Drugs.,
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239 8. Special equipment., and facilities, and
240 9. for Related travel.
241 10. Supplies.
242 (b) At a minimum, compensation must be provided for the
243 following medically necessary, as applicable, and reasonable
244 actual expenses:
245 1. Psychotherapeutic services for A total annual benefit
246 of up to $10,000 for immediate family members and other
247 relatives who have resided reside with the participant, which
248 are infant for psychotherapeutic services obtained from a
249 psychiatrist licensed under chapter 458 or chapter 459, a
250 provider providers licensed under chapter 490 or chapter 491, or
251 a psychiatrist or provider who has equivalent licensure by
252 another jurisdiction. This benefit for such family members and
253 relatives shall be up to a total of $10,000 annually during the
254 participant's lifetime and up to a total of $20,000 subsequent
255 to the participant's death.
256 2. For the life of the participant child, providing family
257 members parents or legal guardians with a reliable method of
258 transporting transportation for the care of the participant and
259 child or reimbursing the cost of upgrading an existing vehicle
260 to accommodate the participant's wheelchair and medically
261 necessary equipment child's needs when it becomes medically
262 necessary for wheelchair transportation. The mode of
263 transportation must take into account the special accommodations
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264 required for the specific child. The plan may not limit such
265 transportation assistance based on the participant's child's age
266 or weight. The plan must replace any vehicle vans purchased by
267 the plan every 7 years or 150,000 miles, whichever comes first.
268 3. Housing assistance of up to $100,000 for the life of
269 the participant child, including, but not limited to, a down
270 payment on a new home, moving expenses, and home construction
271 and modification costs.
272 4. Legal costs associated with establishing and
273 maintaining guardianship for a participant.
274 (c)1. The costs of a health insurance policy or contract
275 that provides major medical or similar comprehensive health
276 coverage for the participant obtained pursuant to subsection
277 (3), including, but not limited to, the premium and out-of-
278 pocket costs. For participants enrolled in the state Medicaid
279 program, the plan must reimburse fee-for-service paid claims and
280 capitation payments, as applicable, for services provided to
281 such participants pursuant to this section and for the
282 administrative and support costs associated with the provided
283 medical assistance. Such funds shall be credited to the Agency
284 for Health Care Administration's Medical Care Trust Fund.
285 2. By December 31, 2026, the plan shall reimburse any
286 participant for reasonable, medically necessary care received by
287 the participant on or before June 30, 2026, which was reduced or
288 not paid by the plan because such participant did not have
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289 health coverage.
290 (d)(b) However, the following expenses are not subject to
291 compensation:
292 1. Expenses for items or services that the participant
293 infant has received, or is entitled to receive, under the laws
294 of any state or the Federal Government, except to the extent
295 such exclusion may be prohibited by federal law.
296 2. Expenses for items or services that the participant
297 infant has received, or is contractually entitled to receive,
298 from any prepaid health plan, health maintenance organization,
299 or other private insuring entity.
300 3. Expenses for which the participant infant has received
301 reimbursement, or for which the participant infant is entitled
302 to receive reimbursement, under the laws of any state or the
303 Federal Government, except to the extent such exclusion may be
304 prohibited by federal law.
305 4. Expenses for which the participant infant has received
306 reimbursement, or for which the participant infant is
307 contractually entitled to receive reimbursement, pursuant to the
308 provisions of any health or sickness insurance policy or other
309 private insurance program.
310 5. Expenses for nursing, home health care, or family care
311 provided while care and supervision of the participant is
312 simultaneously being provided by another person or entity.

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313 (e) Notwithstanding subparagraphs (d)2. and 4., the plan
314 may provide compensation for a medically necessary expense when
315 coverage secured under subsection (3) would not adequately meet
316 the participant's needs, would involve significant disruption in
317 continuity of care, or would be significantly burdensome to
318 access, provided the expense otherwise meets the requirements of
319 ss. 766.301-766.316.
320 (f)(c) Expenses included under paragraphs paragraph (a)
321 and (b) are limited to reasonable charges prevailing in the same
322 community for similar treatment of injured persons when such
323 treatment is paid for by the injured person.
324 (h)1. A family member The parents or legal guardians
325 receiving benefits under the plan may file a petition with the
326 division of Administrative Hearings to dispute the amount of
327 actual expenses reimbursed or a denial of reimbursement.
328 2. In the case of an alleged overpayment of an expense
329 reimbursement by the association to a family member, if the
330 family member does not agree that an overpayment has occurred,
331 the association may file a petition for division review of the
332 overpayment for a determination of the amount, if any, to be
333 recouped by the association.
334 (h)1.(d)1.a. Periodic payments of an award to the family
335 members parents or legal guardians of the participant infant
336 found to have sustained a birth-related neurological injury,
337 which award may not exceed $100,000. However, at the discretion
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338 of the administrative law judge, such award may be made in a
339 lump sum. Beginning on January 1, 2021, the award may not exceed
340 $250,000, and each January 1 thereafter, the maximum award
341 authorized under this paragraph shall increase by 3 percent.
342 b. Parents or legal guardians who received an award
343 pursuant to this section before January 1, 2021, must receive a
344 retroactive payment in an amount sufficient to bring the total
345 award paid to the parents or legal guardians pursuant to sub-
346 subparagraph a. to $250,000. This additional payment may be made
347 in a lump sum or in periodic payments as designated by the
348 parents or legal guardians and must be paid by July 1, 2021.
349 2.a. Death benefit for the participant infant in an amount
350 of $50,000.
351 b. Parents or legal guardians who received an award
352 pursuant to this section, and whose child died since the
353 inception of the program, must receive a retroactive payment in
354 an amount sufficient to bring the total award paid to the
355 parents or legal guardians pursuant to sub-subparagraph a. to
356 $50,000. This additional payment may be made in a lump sum or in
357 periodic payments as designated by the parents or legal
358 guardians and must be paid by July 1, 2021.
359 (i)(e) Reasonable expenses incurred in connection with the
360 filing of a claim under ss. 766.301-766.316, including
361 reasonable attorney attorney's fees, which shall be subject to
362 the approval and award of the administrative law judge. In
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363 determining an award for attorney attorney's fees, the
364 administrative law judge shall consider the following factors:
365 1. The time and labor required, the novelty and difficulty
366 of the questions involved, and the skill requisite to perform
367 the legal services properly.
368 2. The fee customarily charged in the locality for similar
369 legal services.
370 3. The time limitations imposed by the claimant or the
371 circumstances.
372 4. The nature and length of the professional relationship
373 with the claimant.
374 5. The experience, reputation, and ability of the lawyer or
375 lawyers performing services.
376 6. The contingency or certainty of a fee.
377
378 If there is Should there be a final determination of
379 compensability, and the claimants accept an award under this
380 section, the claimants shall are not be liable for any expenses,
381 including attorney fees, incurred in connection with the filing
382 of a claim under ss. 766.301-766.316 other than those expenses
383 awarded under this section.
384 (2) The award shall require the immediate payment of
385 expenses previously incurred and shall require that future
386 expenses be paid as incurred.

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387 (3) A family member must continuously maintain
388 comprehensive major medical health coverage for the participant.
389 (a) If the participant does not have such coverage at the
390 time of entry of a final order by an administrative law judge
391 approving a claim for compensation, the family member must
392 obtain coverage within 60 days after entry of such order or
393 apply for Medicaid coverage within 30 days after entry of such
394 order.
395 (b) If the participant is determined to be ineligible for
396 Medicaid, the family member must obtain other coverage within 60
397 days after receiving the Medicaid application denial.
398 (c) A family member of an individual who is a participant
399 on June 30, 2026, must obtain the required coverage for the
400 participant by January 1, 2027.
401 (4)(3) A copy of the award shall be sent immediately by
402 registered or certified mail to each person served with a copy
403 of the petition under s. 766.305(2).
404 Section 7. Section 766.314, Florida Statutes, is amended
405 to read:
406 766.314 Assessments; plan of operation.—
407 (1) The assessments established pursuant to this section
408 shall be used to finance the Florida Birth-Related Neurological
409 Injury Compensation Plan.
410 (2) The assessments and appropriations dedicated to the
411 plan shall be administered by the Florida Birth-Related
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412 Neurological Injury Compensation Association established in s.
413 766.315, in accordance with the following requirements:
414 (a) On or before July 1, 1988, The directors of the
415 association shall submit to the office Department of Insurance
416 for review and approval a plan of operation and any amendment
417 thereto which shall provide for the efficient administration of
418 the plan and for prompt processing of claims against and awards
419 made on behalf of the plan. The plan of operation shall include
420 provision for:
421 1. Establishment of necessary facilities;
422 2. Management of the funds collected on behalf of the
423 plan;
424 3. Processing of claims against the plan;
425 4. Assessment of the persons and entities listed in
426 subsections (4) and (7) (5) to pay awards and expenses, which
427 assessments shall be on an actuarially sound basis subject to
428 the limits set forth in subsections (4) and (5);
429 5. A fraud and overpayment prevention and detection
430 program; and
431 6.5. Any other matters necessary for the efficient
432 operation of the birth-related neurological injury compensation
433 plan.
434 (b) Amendments to the plan of operation may be made by the
435 directors of the plan, subject to the approval of the office of
436 Insurance Regulation of the Financial Services Commission.
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437 (3) All assessments shall be deposited with the Florida
438 Birth-Related Neurological Injury Compensation association. The
439 funds collected by the association and any income therefrom
440 shall be disbursed only for the payment of awards under ss.
441 766.301-766.316 and for the payment of the reasonable expenses
442 of administering the plan.
443 (4) The following persons and entities shall pay into the
444 association assessments as follows an initial assessment in
445 accordance with the plan of operation:
446 (a)1. On or before October 1, 1988, Each hospital licensed
447 under chapter 395 shall pay an initial assessment of $50 per
448 infant delivered in that the hospital during the prior calendar
449 year, as reported to the Agency for Health Care Administration;
450 provided, however, that a hospital owned or operated by the
451 state or a county, special taxing district, or other political
452 subdivision of the state shall not be required to pay the
453 initial assessment or any assessment required by this subsection
454 or subsection (7) (5). The term "infant delivered" includes live
455 births and not stillbirths, but the term does not include
456 infants delivered by employees or agents of the board of
457 trustees of a state university, those born in a teaching
458 hospital as defined in s. 408.07, or those born in a teaching
459 hospital as defined in s. 395.806 that have been deemed by the
460 association as being exempt from assessments since fiscal year
461 1997 to fiscal year 2001. The initial assessment and any
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462 assessment imposed pursuant to subsection (7) (5) may not
463 include any infant born to a charity patient (as defined by rule
464 of the Agency for Health Care Administration) or born to a
465 patient for whom the hospital receives Medicaid reimbursement,
466 if the sum of the annual charges for charity patients plus the
467 annual Medicaid contractuals of the hospital exceeds 10 percent
468 of the total annual gross operating revenues of the hospital.
469 The hospital is responsible for documenting, to the satisfaction
470 of the association, the exclusion of any birth from the
471 computation of the assessment. Upon demonstration of financial
472 need by a hospital, the association may provide for installment
473 payments of assessments.
474 2. Assessments are due, and hospitals shall pay, all
475 assessments required under this section by December 31 of the
476 calendar year immediately subsequent to the birth year.
477 (b)1.a. On or before October 15, 1988, All physicians
478 licensed pursuant to chapter 458 or chapter 459 as of October 1,
479 1988, other than participating physicians, shall be assessed an
480 annual initial assessment of $250.,
481 b. Payment for all assessments required under this
482 paragraph is due on or before December 31 of each year which
483 must be paid no later than December 1, 1988.
484 2. Any such physician who becomes licensed after September
485 30, 1988, and before January 1, 1989, shall pay into the
486 association an initial assessment of $250 upon licensure.
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487 3. Any such physician who becomes licensed on or after
488 January 1, 1989, shall pay an initial assessment equal to the
489 most recent assessment made pursuant to this paragraph,
490 paragraph (5)(a), or paragraph (7)(b).
491 2.4. However, if the physician is a physician specified in
492 this subparagraph, the assessment is not applicable:
493 a. A resident physician, assistant resident physician, or
494 intern in an approved postgraduate training program, as defined
495 by the Board of Medicine or the Board of Osteopathic Medicine by
496 rule;
497 b. A retired physician who has withdrawn from the practice
498 of medicine but who maintains an active license as evidenced by
499 an affidavit filed with the Department of Health. Prior to
500 reentering the practice of medicine in this state, a retired
501 physician as herein defined must notify the Board of Medicine or
502 the Board of Osteopathic Medicine and pay the appropriate
503 assessments pursuant to this section;
504 c. A physician who holds a limited license pursuant to s.
505 458.317 and who is not being compensated for medical services;
506 d. A physician who is employed full time by the United
507 States Department of Veterans Affairs and whose practice is
508 confined to United States Department of Veterans Affairs
509 hospitals; or
510 e. A physician who is a member of the Armed Forces of the
511 United States and who meets the requirements of s. 456.024.
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512 f. A physician who is employed full time by the State of
513 Florida and whose practice is confined to state-owned
514 correctional institutions, a county health department, or state-
515 owned mental health or developmental services facilities, or who
516 is employed full time by the Department of Health.
517 (c)1. On or before December 1, 1988, Each physician
518 licensed pursuant to chapter 458 or chapter 459 who wishes to
519 participate in the Florida Birth-Related Neurological Injury
520 Compensation Plan and who otherwise qualifies as a participating
521 physician under ss. 766.301-766.316 shall pay an annual initial
522 assessment of $5,000 and any assessment required under paragraph
523 (7)(d), if assessed. However, if the physician is either a
524 resident physician, assistant resident physician, or intern in
525 an approved postgraduate training program, as defined by the
526 Board of Medicine or the Board of Osteopathic Medicine by rule,
527 and is supervised in accordance with program requirements
528 established by the Accreditation Council for Graduate Medical
529 Education or the American Osteopathic Association by a physician
530 who is participating in the plan, such resident physician,
531 assistant resident physician, or intern is deemed to be a
532 participating physician without the payment of the assessment.
533 Participating physicians also include any employee of the board
534 of trustees of a state university who has paid the assessment
535 required by this paragraph and, if assessed, paragraph (7)(d)
536 (5)(a), and any certified nurse midwife supervised by such
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537 employee. Participating physicians include any certified nurse
538 midwife who has paid 50 percent of the physician assessment
539 required by this paragraph and, if assessed, paragraph (7)(d),
540 (5)(a) and who is supervised by a participating physician who
541 has paid the assessment required by this paragraph and, if
542 assessed, paragraph (7)(d) (5)(a). Supervision for nurse
543 midwives shall require that the supervising physician will be
544 easily available and have a prearranged plan of treatment for
545 specified patient problems which the supervised certified nurse
546 midwife may carry out in the absence of any complicating
547 features. Any physician who elects to participate in such plan
548 on or after January 1, 1989, who was not a participating
549 physician at the time of such election to participate and who
550 otherwise qualifies as a participating physician under ss.
551 766.301-766.316 shall pay an additional initial assessment equal
552 to the most recent assessment made pursuant to this paragraph,
553 paragraph (5)(a), or paragraph (7)(b).
554 2. Payment of assessments required by this paragraph is
555 due on or before December 31 of each year for qualification as a
556 participating physician during the next calendar year. If
557 payment of the assessments is received by the association on or
558 before January 31 of any calendar year, the physician shall
559 qualify as a participating physician for that entire calendar
560 year. If the payment is received after January 31, the physician
561 shall qualify as a participating physician for that calendar
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562 year only from the date the payment was received by the
563 association.
564 (d) Any hospital located in a county with a population in
565 excess of 1.1 million as of January 1, 2003, as determined by
566 the Agency for Health Care Administration under the Health Care
567 Responsibility Act, may elect to pay the assessments required by
568 paragraph (c) fee for the participating physician and the
569 certified nurse midwife if the hospital first determines that
570 the primary motivating purpose for making such payment is to
571 ensure coverage for the hospital's patients under the provisions
572 of ss. 766.301-766.316; however, no hospital may restrict any
573 participating physician or nurse midwife, directly or
574 indirectly, from being on the staff of hospitals other than the
575 staff of the hospital making the payment. Each hospital shall
576 file with the association an affidavit setting forth
577 specifically the reasons why the hospital elected to make the
578 payment on behalf of each participating physician and certified
579 nurse midwife. The payments authorized under this paragraph
580 shall be in addition to the assessment set forth in paragraph
581 (5)(a).
582 (5)(a) Beginning January 1, 1990, the persons and entities
583 listed in paragraphs (4)(b) and (c), except those persons or
584 entities who are specifically excluded from said provisions, as
585 of the date determined in accordance with the plan of operation,
586 taking into account persons licensed subsequent to the payment
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587 of the initial assessment, shall pay an annual assessment in the
588 amount equal to the initial assessments provided in paragraphs
589 (4)(b) and (c). If payment of the annual assessment by a
590 physician is received by the association by January 31 of any
591 calendar year, the physician shall qualify as a participating
592 physician for that entire calendar year. If the payment is
593 received after January 31 of any calendar year, the physician
594 shall qualify as a participating physician for that calendar
595 year only from the date the payment was received by the
596 association. On January 1, 1991, and on each January 1
597 thereafter, the association shall determine the amount of
598 additional assessments necessary pursuant to subsection (7), in
599 the manner required by the plan of operation, subject to any
600 increase determined to be necessary by the Office of Insurance
601 Regulation pursuant to paragraph (7)(b). On July 1, 1991, and on
602 each July 1 thereafter, the persons and entities listed in
603 paragraphs (4)(b) and (c), except those persons or entities who
604 are specifically excluded from said provisions, shall pay the
605 additional assessments which were determined on January 1.
606 Beginning January 1, 1990, the entities listed in paragraph
607 (4)(a), including those licensed on or after October 1, 1988,
608 shall pay an annual assessment of $50 per infant delivered
609 during the prior calendar year. The additional assessments which
610 were determined on January 1, 1991, pursuant to the provisions

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611 of subsection (7) shall not be due and payable by the entities
612 listed in paragraph (4)(a) until July 1.
613 (b) If the assessments collected pursuant to subsection
614 (4) and the appropriation of funds provided by s. 76, chapter
615 88-1, Laws of Florida, as amended by s. 41, chapter 88-277, Laws
616 of Florida, to the plan from the Insurance Regulatory Trust Fund
617 are insufficient to maintain the plan on an actuarially sound
618 basis, there is hereby appropriated for transfer to the
619 association from the Insurance Regulatory Trust Fund an
620 additional amount of up to $20 million.
621 (c)1. Taking into account the assessments collected
622 pursuant to subsection (4) and appropriations from the Insurance
623 Regulatory Trust Fund, if required to maintain the plan on an
624 actuarially sound basis, the Office of Insurance Regulation
625 shall require each entity licensed to issue casualty insurance
626 as defined in s. 624.605(1)(b), (k), and (q) to pay into the
627 association an annual assessment in an amount determined by the
628 office pursuant to paragraph (7)(a), in the manner required by
629 the plan of operation.
630 2. All annual assessments shall be made on the basis of
631 net direct premiums written for the business activity which
632 forms the basis for each such entity's inclusion as a funding
633 source for the plan in the state during the prior year ending
634 December 31, as reported to the Office of Insurance Regulation,
635 and shall be in the proportion that the net direct premiums
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636 written by each carrier on account of the business activity
637 forming the basis for its inclusion in the plan bears to the
638 aggregate net direct premiums for all such business activity
639 written in this state by all such entities.
640 3. No entity listed in this paragraph shall be
641 individually liable for an annual assessment in excess of 0.25
642 percent of that entity's net direct premiums written.
643 4. Casualty insurance carriers shall be entitled to
644 recover their initial and annual assessments through a surcharge
645 on future policies, a rate increase applicable prospectively, or
646 a combination of the two.
647 (5)(6)(a) The association shall make all assessments
648 required by this section, except initial assessments of
649 physicians newly licensed by the Department of Health, which
650 assessments will be made by the Department of Health, and except
651 assessments of casualty insurers pursuant to paragraph (7)(c)
652 subparagraph (5)(c)1., which assessments will be made by the
653 office of Insurance Regulation. The Department of Health shall
654 provide the association, in an electronic format, with a monthly
655 report of the names and license numbers of all physicians
656 licensed under chapter 458 or chapter 459.
657 (b)1. The association may enforce collection of
658 assessments required to be paid pursuant to ss. 766.301-766.316
659 by suit filed in county court, or in circuit court if the amount
660 due could exceed the jurisdictional limits of county court. The
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661 association is entitled to an award of attorney fees, costs, and
662 interest upon the entry of a judgment against a physician for
663 failure to pay such assessment, with such interest accruing
664 until paid. Notwithstanding chapters 47 and 48, the association
665 may file such suit in either Leon County or the county of the
666 residence of the defendant. The association shall notify the
667 Department of Health and the applicable board of any unpaid
668 final judgment against a physician within 7 days after the entry
669 of final judgment.
670 2. The Department of Health, upon notification by the
671 association that an assessment has not been paid and that there
672 is an unsatisfied judgment against a physician, shall refuse to
673 renew any license issued to such physician under chapter 458 or
674 chapter 459 until the association notifies the Department of
675 Health that the judgment is satisfied in full.
676 (c) The Agency for Health Care Administration shall, upon
677 notification by the association that an assessment has not been
678 timely paid, enforce collection of such assessments required to
679 be paid by hospitals pursuant to ss. 766.301-766.316. Failure of
680 a hospital to pay such assessment is grounds for disciplinary
681 action pursuant to s. 395.1065 notwithstanding any law to the
682 contrary.
683 (6)(9)(a) Within 60 days after a claim is filed, the
684 association shall estimate the present value of the total cost
685 of the claim, including the estimated amount to be paid to the
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686 claimant, the claimant's attorney, the attorney's fees of the
687 association incident to the claim, and any other expenses that
688 are reasonably anticipated to be incurred by the association in
689 connection with the adjudication and payment of the claim. For
690 purposes of this estimate, the association should include the
691 maximum benefits for noneconomic damages.
692 (b) The association shall revise these estimates quarterly
693 based upon the actual costs incurred and any additional
694 information that becomes available to the association since the
695 last review of this estimate. The estimate shall be reduced by
696 any amounts paid by the association that were included in the
697 current estimate. The association must submit such quarterly
698 estimates to the office within 10 business days after
699 completion.
700 (c) After the revisions of estimates required under
701 paragraph (b), each quarter, the association shall calculate
702 whether the plan is actuarially sound. If the association's
703 calculation indicates that the plan is not actuarially sound,
704 the association shall immediately notify the office as described
705 in subsection (7). The office must review the association's
706 calculations and, within 60 days after the association's
707 notification, determine whether to initiate an actuarial
708 valuation as described in subsection (7), and notify the
709 association of its determination. At a minimum, the office shall
710 make its determination based on the degree to which the
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711 association's calculations indicate that the plan is not
712 actuarially sound, the direction and consistency of recent
713 trends in the calculations of the plan's actuarial soundness,
714 and the length of time since the most recent actuarial valuation
715 conducted by the office and until the next biennial valuation.
716 The office shall initiate such actuarial valuation within 30
717 days after its determination that there is a need for a
718 valuation.
719 1. If the total of all current estimates equals or exceeds
720 100 percent of the funds on hand and the funds that will become
721 available to the association within the next 12 months from all
722 sources described in subsection (4) and paragraph (5)(a), the
723 association may not accept any new claims without express
724 authority from the Legislature. This section does not preclude
725 the association from accepting any claim if the injury occurred
726 18 months or more before the effective date of this suspension.
727 Within 30 days after the effective date of this suspension, the
728 association shall notify the Governor, the Speaker of the House
729 of Representatives, the President of the Senate, the Office of
730 Insurance Regulation, the Agency for Health Care Administration,
731 and the Department of Health of this suspension.
732 2. Notwithstanding this paragraph, the association is
733 authorized to accept new claims during the 2025-2026 fiscal year
734 if the total of all current estimates exceeds the limits

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735 described in subparagraph 1. during that fiscal year. This
736 subparagraph expires July 1, 2026.
737 (d) If any person is precluded from asserting a claim
738 against the association because of paragraph (c), the plan shall
739 not constitute the exclusive remedy for such person, his or her
740 personal representative, parents, dependents, or next of kin.
741 (7)(a) The office of Insurance Regulation shall undertake
742 an actuarial investigation of the requirements of the plan based
743 on the plan's experience in the first year of operation and any
744 additional relevant information, including without limitation
745 the assets and liabilities of the plan. Pursuant to such
746 investigation, the Office of Insurance Regulation shall
747 establish the rate of contribution of the entities listed in
748 paragraph (5)(c) for the tax year beginning January 1, 1990.
749 Following the initial valuation, the Office of Insurance
750 Regulation shall cause an actuarial valuation to be made of the
751 assets and liabilities of the plan at a minimum no less
752 frequently than biennially on or before December 31 of even-
753 numbered years and as provided in subsection (6). Such valuation
754 shall be based on the assets and liabilities of the plan for the
755 calendar year before the year in which the actuarial valuation
756 is due. The office shall also determine whether the plan has
757 adequate estimated cash flow for the following fiscal year,
758 whether, based on the actuarial valuation, the plan is
759 actuarially sound, and if not, whether the plan is likely to
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760 return to actuarial soundness before the next biennial review.
761 Pursuant to the results of such valuations, the Office of
762 Insurance Regulation shall prepare a statement as to the
763 contribution rate applicable to the entities listed in paragraph
764 (5)(c). However, at no time shall the rate be greater than 0.25
765 percent of net direct premiums written.
766 (b) If the office determines that the plan lacks adequate
767 cash flow for the following fiscal year pursuant to the review
768 in paragraph (a), the office shall authorize a transfer of up to
769 $20 million from the Insurance Regulatory Trust Fund to the
770 association within 30 calendar days.
771 (c)(b) If the office of Insurance Regulation finds that the
772 plan is not likely to return to actuarial soundness before the
773 next biennial review pursuant to the review in paragraph (a),
774 the office shall, within 60 calendar days after this finding,
775 order one or more of the following actions:
776 1. Increase the assessments specified in paragraphs (4)(a)
777 and (c) on a proportional basis, by an amount not exceeding 100
778 percent of the applicable assessment in paragraphs (4)(a) and
779 (c), that is calculated to generate a total amount no greater
780 than the amount required to maintain the plan on an actuarially
781 sound basis.
782 2. If actuarial soundness cannot be achieved after using
783 the remedy in subparagraph 1., increase the assessments
784 specified in paragraph (4)(b) on a proportional basis, by an
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785 amount not exceeding 100 percent of the assessment in paragraph
786 (4)(b), that is calculated to generate a total amount no greater
787 than the amount required to maintain the plan on an actuarially
788 sound basis.
789 3. If actuarial soundness cannot be achieved after using
790 the remedies in subparagraphs 1. and 2., require each entity
791 licensed to issue casualty insurance as defined in s.
792 624.605(1)(b), (k), and (q) to pay into the association an
793 annual assessment that is calculated to generate a total amount
794 no greater than the amount required to achieve actuarial
795 soundness of the plan within 5 years after the date of the
796 order, subject to the limitations of this subparagraph.
797 a. These assessments shall be made on the basis of net
798 direct premiums written for the business activity which forms
799 the basis for each such entity's inclusion as a funding source
800 for the plan in the state during the prior year ending December
801 31, as reported to the office, and shall be in the proportion
802 that the net direct premiums written by each carrier on account
803 of the business activity forming the basis for its inclusion in
804 the plan bears to the aggregate net direct premiums for all such
805 business activity written in this state by all such entities.
806 b. No entity shall be individually liable for an annual
807 assessment in excess of 0.25 percent of that entity's net direct
808 premiums written.

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809 c. Casualty insurance carriers shall be entitled to
810 recover their assessments through a surcharge on future
811 policies, a rate increase applicable prospectively, or a
812 combination of the two.
813 d. An assessment under this subparagraph must not extend 5
814 years after the date of the order.
815 (d) If the office finds that the plan is not actuarially
816 sound pursuant to the review in paragraph (a), the plan shall
817 provide the office with quarterly reports projecting the plan's
818 financial health and, if assessments were ordered by the office
819 under this paragraph, projected revenues for such assessments.
820 (e) If the association finds that the plan is not
821 actuarially sound and the remedies provided under subsection (7)
822 are insufficient to reestablish the actuarial soundness of the
823 plan, the association shall, within 60 days after such finding,
824 notify the Governor, the President of the Senate, the Speaker of
825 the House of Representatives, and the office. If the plan issues
826 the notice, the association may not accept any new claims
827 without express authority from the Legislature. This paragraph
828 does not preclude the association from accepting any claim if
829 the injury occurred 18 months or more before the effective date
830 of this suspension.
831 (f) If any person is precluded from asserting a claim
832 against the association because of paragraph (e), the plan shall
833 not constitute the exclusive remedy for such person, his or her
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834 personal representative, parents, dependents, or next of kin
835 cannot be maintained on an actuarially sound basis based on the
836 assessments and appropriations listed in subsections (4) and
837 (5), the office shall increase the assessments specified in
838 subsection (4) on a proportional basis as needed.
839 (8) The association shall report to the Legislature its
840 determination as to the annual cost of maintaining the fund on
841 an actuarially sound basis. In making its determination, the
842 association shall consider the recommendations of all hospitals,
843 physicians, casualty insurers, attorneys, consumers, and any
844 associations representing any such person or entity.
845 Notwithstanding the provisions of s. 395.3025, all hospitals,
846 casualty insurers, departments, boards, commissions, and
847 legislative committees shall provide the association with all
848 relevant records and information upon request to assist the
849 association in making its determination. All hospitals shall,
850 upon request by the association, provide the association with
851 information from their records regarding any live birth. Such
852 information shall not include the name of any physician, the
853 name of any hospital employee or agent, the name of the patient,
854 or any other information which will identify the infant involved
855 in the birth. Such information thereby obtained shall be
856 utilized solely for the purpose of assisting the association and
857 shall not subject the hospital to any civil or criminal
858 liability for the release thereof. Such information shall
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859 otherwise be confidential and exempt from the provisions of s.
860 119.07(1) and s. 24(a), Art. I of the State Constitution.
861 Section 8. Present subsections (5) through (8) of section
862 766.315, Florida Statutes, are redesignated as subsections (6)
863 through (9), respectively, a new subsection (5) is added to that
864 section, and subsection (1), paragraph (e) of present subsection
865 (5), and present subsections (7) and (8) of that section are
866 amended to read:
867 766.315 Florida Birth-Related Neurological Injury
868 Compensation Association; board of directors; notice of
869 meetings; report.—
870 (1)(a) The Florida Birth-Related Neurological Injury
871 Compensation Plan shall be governed by a board of seven
872 directors which shall be known as the Florida Birth-Related
873 Neurological Injury Compensation Association. The association is
874 not a state agency, board, or commission. Notwithstanding the
875 provision of s. 15.03, the association is authorized to use the
876 state seal.
877 (b) The directors shall be appointed for staggered terms
878 of 3 years or until their successors are appointed and have
879 qualified; however, a director may not serve for more than 6
880 consecutive years.
881 (c) The directors shall be appointed by the Chief
882 Financial Officer as follows:

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883 1. One citizen representative who is not affiliated with
884 any of the groups identified in subparagraphs 2.-7.
885 2. One representative of participating physicians.
886 3. One representative of hospitals.
887 4. One representative of casualty insurers.
888 5. One representative of physicians other than
889 participating physicians.
890 6. One family member of a participant parent or legal
891 guardian representative of an injured infant under the plan.
892 7. One representative of an advocacy organization for
893 children with disabilities.
894 (5) The board of directors may not create new benefits or
895 expand existing benefits that result in additional costs to the
896 plan if the plan's operating expenses exceed assessment revenue,
897 plus investment income, as documented in the plan's audited
898 financial statements for the prior fiscal year.
899 (6)(5)
900 (e) Annually, the association shall furnish audited
901 financial reports to any plan participant upon request, to the
902 office of Insurance Regulation of the Financial Services
903 Commission, and to the Joint Legislative Auditing Committee. The
904 reports must be prepared in accordance with generally accepted
905 auditing standards accounting procedures and must include such
906 information as may be required by the office of Insurance
907 Regulation or the Joint Legislative Auditing Committee. At any
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908 time determined to be necessary, the office of Insurance
909 Regulation or the Joint Legislative Auditing Committee may
910 conduct an audit of the plan.
911 (8)(7) The association shall publish a report on its
912 website by January 1 of each year. The report must shall include
913 all of the following:
914 (a) The names and terms of each board member and executive
915 staff member.
916 (b) The amount of compensation paid to each association
917 employee or independent contractor.
918 (c) A summary of reimbursement disputes and resolutions.
919 (d) A list of expenditures for attorney fees and lobbying
920 fees.
921 (e) Other expenses to oppose each plan claim. Any personal
922 identifying information of the parent, legal guardian, or child
923 involved in the claim must be removed from this list.
924 (9)(8) By November 1 of each year, the association shall
925 submit a report to the Governor, the President of the Senate,
926 the Speaker of the House of Representatives, and the Chief
927 Financial Officer. The report must include all of the following:
928 (a) The number of petitions filed for compensation with
929 the division, the number of claimants awarded compensation, the
930 number of claimants denied compensation, and the reasons for the
931 denial of compensation.

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932 (b) The number and dollar amount of paid and denied
933 compensation for expenses by category and the reasons for any
934 denied compensation for expenses by category.
935 (c) The average turnaround time for paying or denying
936 compensation for expenses.
937 (d) Legislative recommendations to improve the program.
938 (e) A summary of any pending or resolved litigation during
939 the year which affects the plan.
940 (f) The amount of compensation paid to each association
941 employee, independent contractor, or member of the board of
942 directors.
943 Section 9. This act shall take effect July 1, 2026.
944
945 -----------------------------------------------------
946 T I T L E A M E N D M E N T
947 Remove lines 7-48 and insert:
948 s. 766.302, F.S.; providing and revising definitions;
949 removing a limitation on time subject to plan
950 compensation; amending s. 766.303, F.S.; revising
951 terminology; amending s. 766.305, F.S.; revising
952 provisions relating to filing claims; amending s.
953 766.309, F.S.; conforming a cross-reference; amending
954 s. 766.31, F.S.; revising items that are eligible for
955 an award providing compensation; requiring
956 compensation to be provided for certain actual
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957 expenses; requiring compensation for the costs of
958 major medical health coverage; requiring the plan to
959 reimburse certain payments made for services provided;
960 exempting expenses for professional custodial care in
961 certain circumstances; requiring that, upon entry of a
962 final order for compensation, parents or legal
963 guardians obtain private health insurance or submit an
964 application for the Medicaid program; amending s.
965 766.314, F.S.; requiring the directors to maintain a
966 plan of operation; requiring certain assessments to be
967 paid into the Florida Birth-Related Neurological
968 Injury Compensation Association at certain times for
969 certain purposes; requiring the plan of operation to
970 include a provision for fraud; removing obsolete
971 provisions; revising provisions relating to an
972 actuarial valuation of the plan; requiring the
973 association to submit quarterly estimates; requiring
974 the association to state whether the plan is
975 actuarially sound; authorizing a transfer of funds to
976 the association from the Insurance Regulatory Trust
977 Fund if the plan is not actuarially sound; requiring
978 the association to require each entity to issue
979 casualty insurance and pay an annual assessment;
980 providing requirements for annual assessments;
981 requiring an increase in assessments after certain
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982 findings; requiring the association to determine
983 whether the plan is actuarially sound after certain
984 revisions; providing criteria for such determination;
985 requiring notification to the Governor, Legislature,
986 and Office of Insurance Regulation after certain
987 findings; providing that the plan is not the exclusive
988 remedy if it is prohibited from accepting new claims;
989 amending s. revising membership of the association's
990 board of directors; prohibiting the board of directors
991 from creating new benefits or expanding existing
992 benefits under the plan under certain circumstances;
993 revising requirements for certain reports of the
994 association; providing an effective date.

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