Florida Senate - 2024 CS for CS for CS for SB 1066
By the Committees on Rules; Judiciary; and Banking and
Insurance; and Senator Burton
595-03792-24 20241066c3
1 A bill to be entitled
2 An act relating to consumer protection; amending s.
3 212.134, F.S.; defining terms; revising requirements
4 for payment settlement entities, or their electronic
5 payment facilitators or contracted third parties, in
6 submitting information returns to the Department of
7 Revenue; specifying requirements for third party
8 settlement organizations that conduct certain
9 transactions; providing applicability; amending s.
10 489.147, F.S.; defining the term “residential property
11 owner”; authorizing a residential property owner to
12 cancel a contract to replace or repair a roof without
13 penalty or obligation under certain circumstances;
14 defining the term “official start date”; requiring
15 certain contractors to include certain language in
16 contracts executed at a specified time; requiring the
17 residential property owner to send a notice of
18 cancellation in a certain manner; amending s.
19 559.9611, F.S.; revising the definition of the term
20 “depository institution”; amending s. 624.424, F.S.;
21 providing requirements for certain insurers’
22 accountants; amending s. 626.8796, F.S.; revising the
23 content of certain public adjuster contracts; amending
24 s. 627.43141, F.S.; specifying requirements, which
25 apply as of a specified date, for certain notices
26 regarding a change in policy terms; amending s.
27 627.6426, F.S.; revising the disclosure requirements
28 of contracts for short-term health insurance; amending
29 s. 627.70132, F.S.; prohibiting a notice of claim for
30 loss assessment coverage from occurring later than a
31 specified date; requiring that such notice be provided
32 to an insurer no later than a specified date; amending
33 s. 791.01, F.S.; revising the definition of the term
34 “fireworks”; amending s. 791.012, F.S.; updating the
35 source of the code for outdoor display of fireworks;
36 providing an effective date.
37
38 Be It Enacted by the Legislature of the State of Florida:
39
40 Section 1. Section 212.134, Florida Statutes, is amended to
41 read:
42 212.134 Information returns relating to payment-card and
43 third party third-party network transactions.—
44 (1) For purposes of this section, the term:
45 (a) “Participating payee” has the same meaning as in s.
46 6050W of the Internal Revenue Code.
47 (b) “Return” or “information return” means IRS Form 1099-K
48 required under s. 6050W of the Internal Revenue Code.
49 (c) “Third party network transaction” has the same meaning
50 as in s. 6050W of the Internal Revenue Code.
51 (d) “Third party settlement organization” has the same
52 meaning as in s. 6050W of the Internal Revenue Code.
53 (2) For each year in which a payment settlement entity, an
54 electronic payment facilitator, or other third party contracted
55 with the payment settlement entity to make payments to settle
56 reportable payment transactions on behalf of the payment
57 settlement entity must file a return pursuant to s. 6050W of the
58 Internal Revenue Code, for participating payees with an address
59 in this state, the entity, the facilitator, or the third party
60 must submit the information in the return to the department by
61 the 30th day after filing the federal return. The format of the
62 information returns required must be either a copy of such
63 information returns or a copy of such information returns
64 related to participating payees with an address in the state.
65 For purposes of this subsection, the term “payment settlement
66 entity” has the same meaning as provided in s. 6050W of the
67 Internal Revenue Code.
68 (3)(2) All reports of returns submitted to the department
69 under this section must be in an electronic format.
70 (4)(3) Any payment settlement entity, facilitator, or third
71 party failing to file the information return required, filing an
72 incomplete information return, or not filing an information
73 return within the time prescribed is subject to a penalty of
74 $1,000 for each failure, if the failure is for not more than 30
75 days, with an additional $1,000 for each month or fraction of a
76 month during which each failure continues. The total amount of
77 penalty imposed on a reporting entity may not exceed $10,000
78 annually.
79 (5)(4) The executive director or his or her designee may
80 waive the penalty if he or she determines that the failure to
81 timely file an information return was due to reasonable cause
82 and not due to willful negligence, willful neglect, or fraud.
83 (6) All third party settlement organizations that conduct
84 transactions involving a participating payee with an address in
85 this state and that have a contractual obligation with such
86 participating payee to make payment to them shall create a
87 mechanism for senders of payments to identify whether a payment
88 to a payee is for goods and services or is personal. The
89 mechanism must clearly indicate the sender’s requirement to
90 indicate the appropriate transaction type. The sender of the
91 payment is responsible for indicating the appropriate
92 transaction type. All third party settlement organizations shall
93 maintain records that clearly identify whether a transaction, as
94 designated by the sender of the payment, is a transaction for
95 goods and services or is personal. The information in the return
96 submitted to the department under subsection (2) for such
97 entities must be limited to transactions for goods and services.
98 (7) Notwithstanding this section, subsection (6) does not
99 apply to a third party settlement organization if a contractual
100 agreement or arrangement to provide a third party payment
101 network to a participating payee requires the third party
102 settlement organization solely to settle third party network
103 transactions for the provision of goods and services.
104 Section 2. Section 489.147, Florida Statutes, is amended to
105 read:
106 489.147 Prohibited property insurance practices; contract
107 requirements.—
108 (1) As used in this section, the term:
109 (a) “Prohibited advertisement” means any written or
110 electronic communication by a contractor which encourages,
111 instructs, or induces a consumer to contact a contractor or
112 public adjuster for the purpose of making an insurance claim for
113 roof damage, if such communication does not state in a font size
114 of at least 12 points and at least half as large as the largest
115 font size used in the communication that:
116 1. The consumer is responsible for payment of any insurance
117 deductible;
118 2. It is insurance fraud punishable as a felony of the
119 third degree for a contractor to knowingly or willfully, and
120 with intent to injure, defraud, or deceive, pay, waive, or
121 rebate all or part of an insurance deductible applicable to
122 payment to the contractor for repairs to a property covered by a
123 property insurance policy; and
124 3. It is insurance fraud punishable as a felony of the
125 third degree to intentionally file an insurance claim containing
126 any false, incomplete, or misleading information.
127
128 The term includes, but is not limited to, door hangers, business
129 cards, magnets, flyers, pamphlets, and e-mails.
130 (b) “Residential property owner” means the person who holds
131 the legal title to the residential real property that is subject
132 of and directly impacted by the action of a governmental entity.
133 The term does not include a governmental entity.
134 (c) “Soliciting” means contacting:
135 1. In person;
136 2. By electronic means, including, but not limited to, e
137 mail, telephone, and any other real-time communication directed
138 to a specific person; or
139 3. By delivery to a specific person.
140 (2) A contractor may not directly or indirectly engage in
141 any of the following practices:
142 (a) Soliciting a residential property owner by means of a
143 prohibited advertisement.
144 (b) Offering to a residential property owner a rebate,
145 gift, gift card, cash, coupon, waiver of any insurance
146 deductible, or any other thing of value in exchange for:
147 1. Allowing the contractor to conduct an inspection of the
148 residential property owner’s roof; or
149 2. Making an insurance claim for damage to the residential
150 property owner’s roof.
151 (c) Offering, delivering, receiving, or accepting any
152 compensation, inducement, or reward, for the referral of any
153 services for which property insurance proceeds are payable.
154 Payment by the residential property owner or insurance company
155 to a contractor for roofing services rendered does not
156 constitute compensation for a referral.
157 (d) Interpreting policy provisions or advising an insured
158 regarding coverages or duties under the insured’s property
159 insurance policy or adjusting a property insurance claim on
160 behalf of the insured, unless the contractor holds a license as
161 a public adjuster pursuant to part VI of chapter 626.
162 (e) Providing an insured with an agreement authorizing
163 repairs without providing a good faith estimate of the itemized
164 and detailed cost of services and materials for repairs
165 undertaken pursuant to a property insurance claim. A contractor
166 does not violate this paragraph if, as a result of the process
167 of the insurer adjusting a claim, the actual cost of repairs
168 differs from the initial estimate.
169 (3) A contractor who violates this section is subject to
170 disciplinary proceedings as set forth in s. 489.129. A
171 contractor may receive up to a $10,000 fine for each violation
172 of this section.
173 (4) For the purposes of this section:
174 (a) The acts of any person on behalf of a contractor,
175 including, but not limited to, the acts of a compensated
176 employee or a nonemployee who is compensated for soliciting,
177 shall be considered the actions of the contractor.
178 (b) An unlicensed person who engages in an act prohibited
179 by this section is guilty of unlicensed contracting and is
180 subject to the penalties set forth in s. 489.13. Notwithstanding
181 s. 489.13(3), an unlicensed person who violates this section may
182 be fined up to $10,000 for each violation.
183 (5) A contractor may not execute a contract with a
184 residential property owner to repair or replace a roof without
185 including a notice that the contractor may not engage in the
186 practices set forth in paragraph (2)(b). If the contractor fails
187 to include such notice, the residential property owner may void
188 the contract within 10 days after executing it.
189 (6)(a) A residential property owner may cancel a contract
190 to replace or repair a roof without penalty or obligation within
191 10 days after the execution of the contract or by the official
192 start date, whichever comes first, if the contract was entered
193 into based on events that are the subject of a declaration of a
194 state of emergency by the Governor. For the purposes of this
195 subsection, the term “official start date” means the date on
196 which work that includes the installation of materials that will
197 be included in the final work on the roof commences, a final
198 permit has been issued, or a temporary repair to the roof
199 covering or roof has been made in compliance with the Florida
200 Building Code.
201 (b) A contractor executing a contract during a declaration
202 of a state of emergency to replace or repair a roof of a
203 residential property must include or add as an attachment to the
204 contract the following language, in bold type of not less than
205 18 points, immediately before a space reserved for the signature
206 of the residential property owner:
207
208 You, the residential property owner, may cancel this
209 contract without penalty or obligation within 10 days
210 after the execution of the contract or by the official
211 start date, whichever comes first, because this
212 contract was entered into during a declaration of a
213 state of emergency by the Governor. The official start
214 date is the date on which work that includes the
215 installation of materials that will be included in the
216 final work on the roof commences, a final permit has
217 been issued, or a temporary repair to the roof
218 covering or roof system has been made in compliance
219 with the Florida Building Code.
220
221 (c) The residential property owner must send the notice of
222 cancellation by certified mail, return receipt requested, or
223 other form of mailing that provides proof thereof, at the
224 address specified in the contract.
225 Section 3. Subsection (9) of section 559.9611, Florida
226 Statutes, is amended to read:
227 559.9611 Definitions.—As used in this part, the term:
228 (9) “Depository institution” means a bank, a credit union,
229 a savings bank, a savings and loan association, a savings or
230 thrift association, or an industrial loan company doing business
231 under the authority of a charter issued by the United States,
232 this state, or any other state, district, territory, or
233 commonwealth of the United States which is authorized to
234 transact business in this state and whose deposits or share
235 accounts are insured by the Federal Deposit Insurance
236 Corporation or the National Credit Union Share Insurance Fund
237 Florida state-chartered bank, savings bank, credit union, or
238 trust company, or a federal savings or thrift association, bank,
239 credit union, savings bank, or thrift.
240 Section 4. Paragraph (d) of subsection (8) of section
241 624.424, Florida Statutes, is amended to read:
242 624.424 Annual statement and other information.—
243 (8)
244 (d) Upon creation of continuing education required under
245 this paragraph, the certified public accountant who prepares the
246 audit must be licensed to practice pursuant to chapter 473 and
247 must have completed at least 4 hours of insurance-related
248 continuing education during each 2-year continuing education
249 cycle. An insurer may not use the same accountant or partner of
250 an accounting firm responsible for preparing the report required
251 by this subsection for more than 5 consecutive years. Following
252 this period, the insurer may not use such accountant or partner
253 for a period of 5 years, but may use another accountant or
254 partner of the same firm. An insurer may request the office to
255 waive this prohibition based upon an unusual hardship to the
256 insurer and a determination that the accountant is exercising
257 independent judgment that is not unduly influenced by the
258 insurer considering such factors as the number of partners,
259 expertise of the partners or the number of insurance clients of
260 the accounting firm; the premium volume of the insurer; and the
261 number of jurisdictions in which the insurer transacts business.
262 Section 5. Subsection (2) of section 626.8796, Florida
263 Statutes, is amended to read:
264 626.8796 Public adjuster contracts; disclosure statement;
265 fraud statement.—
266 (2) A public adjuster contract relating to a property and
267 casualty claim must contain the full name, permanent business
268 address, phone number, e-mail address, and license number of the
269 public adjuster; the full name and license number of the public
270 adjusting firm; and the insured’s full name, street address,
271 phone number, and e-mail address, together with a brief
272 description of the loss. The contract must state the percentage
273 of compensation for the public adjuster’s services in minimum
274 18-point bold type before the space reserved in the contract for
275 the signature of the insured; the type of claim, including an
276 emergency claim, nonemergency claim, or supplemental claim; the
277 initials of the named insured on each page that does not contain
278 the insured’s signature; the signatures of the public adjuster
279 and all named insureds; and the signature date. If all of the
280 named insureds’ signatures are not available, the public
281 adjuster must submit an affidavit signed by the available named
282 insureds attesting that they have authority to enter into the
283 contract and settle all claim issues on behalf of the named
284 insureds. An unaltered copy of the executed contract must be
285 remitted to the insured at the time of execution and to the
286 insurer, or the insurer’s representative within 7 days after
287 execution. A public adjusting firm that adjusts claims primarily
288 for commercial entities with operations in more than one state
289 and that does not directly or indirectly perform adjusting
290 services for insurers or individual homeowners is deemed to
291 comply with the requirements of this subsection if, at the time
292 a proof of loss is submitted, the public adjusting firm remits
293 to the insurer an affidavit signed by the public adjuster or
294 public adjuster apprentice that identifies:
295 (a) The full name, permanent business address, phone
296 number, e-mail address, and license number of the public
297 adjuster or public adjuster apprentice.
298 (b) The full name of the public adjusting firm.
299 (c) The insured’s full name, street address, phone number,
300 and e-mail address, together with a brief description of the
301 loss.
302 (d) An attestation that the compensation for public
303 adjusting services will not exceed the limitations provided by
304 law.
305 (e) The type of claim, including an emergency claim,
306 nonemergency claim, or supplemental claim.
307 Section 6. Subsection (2) of section 627.43141, Florida
308 Statues, is amended to read:
309 627.43141 Notice of change in policy terms.—
310 (2) A renewal policy may contain a change in policy terms.
311 If such change occurs, the insurer shall give the named insured
312 advance written notice summarizing the change, which may be
313 enclosed along with the written notice of renewal premium
314 required under ss. 627.4133 and 627.728 or sent separately
315 within the timeframe required under the Florida Insurance Code
316 for the provision of a notice of nonrenewal to the named insured
317 for that line of insurance. The insurer must also provide a
318 sample copy of the notice to the named insured’s insurance agent
319 before or at the same time that notice is provided to the named
320 insured. Such notice shall be entitled “Notice of Change in
321 Policy Terms.” Beginning January 1, 2025, the notice shall be in
322 bold type of not less than 14 points and included as a single
323 page or consecutive pages, as necessary, within the written
324 notice.
325 Section 7. Section 627.6426, Florida Statutes, is amended
326 to read:
327 627.6426 Short-term health insurance.—
328 (1) For purposes of this part, the term “short-term health
329 insurance” means health insurance coverage provided by an issuer
330 with an expiration date specified in the contract that is less
331 than 12 months after the original effective date of the contract
332 and, taking into account renewals or extensions, has a duration
333 not to exceed 36 months in total.
334 (2) All contracts for short-term health insurance entered
335 into by an issuer and an individual seeking coverage must shall
336 include the following written disclosures signed by the
337 purchaser at the time of purchase disclosure:
338 (a) The following statement:
339
340 “This coverage is not required to comply with certain
341 federal market requirements for health insurance,
342 principally those contained in the Patient Protection
343 and Affordable Care Act. Be sure to check your policy
344 carefully to make sure you are aware of any exclusions
345 or limitations regarding coverage of preexisting
346 conditions or health benefits (such as
347 hospitalization, emergency services, maternity care,
348 preventive care, prescription drugs, and mental health
349 and substance use disorder services). Your policy
350 might also have lifetime and/or annual dollar limits
351 on health benefits. If this coverage expires or you
352 lose eligibility for this coverage, you might have to
353 wait until an open enrollment period to get other
354 health insurance coverage.”
355
356 (b) The following information:
357 1. The duration of the contract, including any waiting
358 period.
359 2. Any essential health benefit under 42 U.S.C. s. 18022(b)
360 that the contract does not provide.
361 3. The content of coverage.
362 4. Any exclusion of preexisting conditions.
363 (3) The disclosures must be printed in no less than 12
364 point type and in a color that is easily readable. A copy of the
365 signed disclosures must be maintained by the issuer for a period
366 of 5 years after the date of purchase.
367 (4) Disclosures provided by electronic means must meet the
368 requirements of subsection (2).
369 Section 8. Present subsection (4) of section 627.70132,
370 Florida Statutes, is redesignated as subsection (5), and a new
371 subsection (4) is added to that section, to read:
372 627.70132 Notice of property insurance claim.—
373 (4)(a) A notice of claim for loss assessment coverage under
374 s. 627.714 may not occur later than 3 years after the date of
375 loss and must be provided to the insurer the later of:
376 1. Within 1 year after the date of loss; or
377 2. Within 90 days after the date on which the condominium
378 association or its governing board votes to levy an assessment
379 resulting from a covered loss.
380 (b) For purposes of this subsection, the date of loss is
381 the date of the covered loss event that created the need for an
382 assessment.
383 Section 9. Paragraph (a) of subsection (4) of section
384 791.01, Florida Statutes, is amended to read:
385 791.01 Definitions.—As used in this chapter, the term:
386 (4)(a) “Fireworks” means and includes any combustible or
387 explosive composition or substance or combination of substances
388 or, except as hereinafter provided, any article prepared for the
389 purpose of producing a visible or audible effect by combustion,
390 explosion, deflagration, or detonation. The term includes blank
391 cartridges and toy cannons in which explosives are used, the
392 type of balloons which require fire underneath to propel them,
393 firecrackers, torpedoes, skyrockets, roman candles, dago bombs,
394 and any fireworks containing any explosives or flammable
395 compound or any tablets or other device containing any explosive
396 substance.
397 Section 10. Section 791.012, Florida Statutes, is amended
398 to read:
399 791.012 Minimum fireworks safety standards.—The outdoor
400 display of fireworks in this state shall be governed by the
401 National Fire Protection Association (NFPA) 1123, Code for
402 Fireworks Display, 2018 1995 Edition, approved by the American
403 National Standards Institute. Any state, county, or municipal
404 law, rule, or ordinance may provide for more stringent
405 regulations for the outdoor display of fireworks, but in no
406 event may any such law, rule, or ordinance provide for less
407 stringent regulations for the outdoor display of fireworks. The
408 division shall promulgate rules to carry out the provisions of
409 this section. The Code for Fireworks Display shall not govern
410 the display of any fireworks on private, residential property
411 and shall not govern the display of those items included under
412 s. 791.01(4)(b) and (c) and authorized for sale thereunder.
413 Section 11. This act shall take effect July 1, 2024.