CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 1 of 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 A bill to be entitled 1 An act relating to fees in lieu of security deposits; 2 creating s. 83.491, F.S.; authorizing a landlord to 3 offer a tenant the option to pay a fee in lieu of a 4 security deposit; requiring the landlord to notify the 5 tenant of certain unpaid fees and costs wit hin a 6 specified time after the conclusion of the tenancy; 7 prohibiting the landlord from filing an insurance 8 claim within a specified period of time; providing 9 requirements for the landlord and insurer if an 10 insurance claim to recover certain losses is file d; 11 prohibiting the landlord from accepting certain 12 payments; requiring the landlord to provide certain 13 written notice to the tenant; requiring a written 14 agreement signed by the landlord, or the landlord's 15 agent, and the tenant if the tenant decides to pay a 16 fee in lieu of the security deposit; requiring a 17 specified disclosure in the written agreement; 18 providing options for paying the fee; specifying that 19 the fee is not a security deposit; specifying that 20 landlords have exclusive discretion whether to offer 21 tenants the option to pay a fee in lieu of a security 22 deposit; requiring a landlord to offer the fee option 23 to all new tenants under certain circumstances; 24 providing an exception; providing applicability; 25 CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 2 of 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 providing an effective date. 26 27 Be It Enacted by the Legislature of the State of Florida: 28 29 Section 1. Section 83.491, Florida Statutes, is created to 30 read: 31 83.491 Fee in lieu of security deposit. — 32 (1) If a rental agreement requires a security deposit, a 33 landlord may offer a tenant the option to p ay a fee in lieu of 34 the security deposit. 35 (2)(a) If a tenant agrees to pay a fee in lieu of a 36 security deposit, the landlord must notify the tenant within 30 37 days after the conclusion of the tenancy of any costs or fees 38 that are due resulting from unpaid rent, fees, or other 39 obligations under the rental agreement, including, but not 40 limited to, costs required for repairing damage to the premises 41 beyond normal wear and tear. 42 (b) A landlord may not submit a claim with an insurer to 43 recover the landlord's losses associated with unpaid rent, fees, 44 or other obligations under the rental agreement, including, but 45 not limited to, costs required for repairing damage to the 46 premises beyond normal wear and tear until at least 15 days 47 after providing the tenant with the required notice under 48 paragraph (a). 49 1. The landlord must include an itemized list of any 50 CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 3 of 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 unpaid amounts and the dates such amounts were due, 51 documentation supporting any itemized damages and costs of 52 repairs, and a copy of any written objection or report of any 53 communication of objection by the tenant when he or she submits 54 a claim to an insurer. 55 2. If an insurer pays a claim that was submitted under 56 this subsection to a landlord and the insurer has subrogation 57 rights, the insurer may, within 1 ye ar after the tenancy that 58 was the subject of the claim ends, seek reimbursement from the 59 tenant for the amounts that were paid to the landlord. If the 60 insurer seeks reimbursement from the tenant, the following 61 apply: 62 a. The insurer must provide the tenan t with all 63 documentation for losses that the landlord provided to the 64 insurer in support of the landlord's claim and a copy of the 65 settlement statement documenting the insurer's payment of the 66 landlord's claim. 67 b. The tenant has any defenses against the insurer which 68 the insurer would otherwise have against the landlord. 69 3. A landlord may not accept payment from both a tenant 70 and an insurer for amounts associated with the same rent, fees, 71 or damages. 72 (3) If a landlord offers a tenant the option to pay a fee 73 in lieu of a security deposit, the landlord must notify the 74 tenant in writing of all of the following: 75 CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 4 of 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 (a) That the tenant has the option to pay a security 76 deposit instead of the fee. 77 (b) That the tenant may, at any time, terminate the 78 agreement to pay the fee in lieu of the security deposit and 79 instead pay a security deposit in the amount that is otherwise 80 offered to new tenants for a substantially similar dwelling unit 81 on the date that the tenant terminates the agreement. 82 (c) Whether any addi tional charges apply for the options 83 provided in paragraphs (a) and (b). 84 (d) The amount of the payments required for each option 85 the landlord offers. 86 (e) That the fee is nonrefundable, if applicable. 87 (f) That the fee is only for securing occupancy wi thout 88 paying a required security deposit. 89 (g) That the fee payment does not limit or change the 90 tenant's obligation to pay rent and fees, if any, under the 91 rental agreement or limit or change the tenant's obligation to 92 pay the costs of repairing damage t o the premises beyond normal 93 wear and tear. 94 (h) That if the landlord uses any portion of the fee to 95 purchase insurance, the tenant is not insured and is not a 96 beneficiary of the landlord's insurance coverage, and that the 97 insurance does not limit or chan ge the tenant's obligations to 98 pay rent and fees, if any, under the rental agreement or change 99 the tenant's obligation to pay the costs of repairing damage to 100 CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 5 of 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 the premises beyond normal wear and tear. 101 (4)(a) If a tenant decides to pay a fee in lieu of a 102 security deposit, a written agreement to collect the fee must be 103 signed by the landlord, or the landlord's agent, and the tenant. 104 The written agreement must, at a minimum, specify the amount of 105 the fee and how and when the fee is to be collected. 106 (b) The written agreement specified under paragraph (a) 107 must also include a disclosure in substantially the following 108 form: 109 110 FEE IN LIEU OF SECURITY DEPOSIT 111 THIS AGREEMENT HAS BEEN ENTERED INTO VOLUNTARILY BY BOTH PARTIES 112 AND THE TENANT AGREES TO PAY THE LANDLOR D A FEE IN LIEU OF A 113 SECURITY DEPOSIT AS AUTHORIZED UNDER SECTION 83.491, FLORIDA 114 STATUTES. THIS FEE IS NOT A SECURITY DEPOSIT AND PAYMENT OF THE 115 FEE DOES NOT ABSOLVE THE TENANT OF ANY OBLIGATIONS UNDER THE 116 RENTAL AGREEMENT, INCLUDING THE OBLIGATION TO PAY RENT AS IT 117 BECOMES DUE AND ANY COSTS AND DAMAGES BEYOND NORMAL WEAR AND 118 TEAR THAT THE TENANT OR HIS OR HER GUESTS MAY CAUSE. IF THE 119 LANDLORD USES ANY PORTION OF THE TENANT'S FEE TO PURCHASE 120 INSURANCE, THE TENANT IS NOT INSURED AND IS NOT A BENEFICIARY OF 121 SUCH COVERAGE. SUCH INSURANCE DOES NOT LIMIT OR CHANGE THE 122 TENANT'S OBLIGATION TO PAY RENT AND FEES, IF ANY, UNDER THE 123 RENTAL AGREEMENT OR TO PAY THE COSTS AND DAMAGES BEYOND NORMAL 124 WEAR AND TEAR THAT THE TENANT OR HIS OR HER GUESTS MAY CAUSE. 125 CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 6 of 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 THE TENANT MAY TERMINATE THIS AGREEMENT AT ANY TIME AND STOP 126 PAYING THE FEE AND INSTEAD PAY A SECURITY DEPOSIT AS PROVIDED IN 127 SECTION 83.491, FLORIDA STATUTES. 128 129 THIS DISCLOSURE IS BASIC. PLEASE REFER TO PART II OF CHAPTER 83, 130 FLORIDA STATUTES, TO DETERMINE YOUR LEGAL RIGHTS AND 131 OBLIGATIONS. 132 133 (5) A fee in lieu of a security deposit may be: 134 (a) A recurring monthly fee, payable on the same date that 135 the rent payment is due under the rental agreement; or 136 (b) Payable upon a schedule that the landlord and tenant 137 choose and as specified in the written agreement. 138 (6) A fee collected under this section is not a security 139 deposit as defined in s. 83.43(12). 140 (7) A landlord has exclusive discretion whether to offer 141 tenants the option to pay a fee in lieu of a security depo sit 142 and is not required to offer the fee option to tenants. However, 143 if a landlord offers a tenant the option to pay a fee in lieu of 144 a security deposit, the landlord must also offer all new tenants 145 renting a dwelling unit on the same premises the option t o pay a 146 fee in lieu of a security deposit, unless the landlord chooses 147 to terminate the fee option for all tenants. 148 (8) This section applies to rental agreements entered into 149 or renewed on or after July 1, 2022. 150 CS/CS/HB 537 2022 CODING: Words stricken are deletions; words underlined are additions. hb0537-02-c2 Page 7 of 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 Section 2. This act shall take effect July 1, 2022. 151