Florida 2022 Regular Session

Florida House Bill H0749 Compare Versions

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1010 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
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14+A bill to be entitled 1
1515 An act relating to fraud prevention; creating s. 2
1616 324.252, F.S.; requiring that the electronic 3
1717 credentialing system display certain vehicle 4
1818 information, provide certain notification for a 5
1919 specified purpose, and allow drivers to update certain 6
2020 information by a specified date; requiring the 7
2121 Department of Highway Safety and Motor Vehicles to 8
2222 provide the Legislature with recommendations for 9
2323 compliance verification with certain financial 10
2424 responsibility requirements by a specified date; 11
2525 amending s. 501.165, F.S.; requiring certain sellers 12
2626 to allow consumers to cancel in a specified manner and 13
2727 by a specified means service contracts that include 14
2828 automatic renewal provisions; amending s. 626.854, 15
2929 F.S.; revising maximum fines for public adjusters and 16
3030 public adjuster apprentices for certain violations 17
3131 under a specified circumstance; revising maximum fines 18
3232 for certain violations by certain persons under a 19
3333 specified circumstance; amending s. 633.126, F.S.; 20
3434 authorizing the department to impose an administrative 21
3535 fine on insurance companies under certain 22
3636 circumstances; deleting criminal penalties; 23
3737 authorizing the division to adopt certain rules; 24
3838 amending s. 634.095, F.S.; revising requirements for 25
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4747 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
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5151 advertisements issued or caused to be issued by 26
5252 service agreement companies or s alespersons; amending 27
5353 s. 775.15, F.S.; revising felony violations for which 28
5454 prosecutions must be commenced within a specified 29
5555 timeframe; amending s. 817.234, F.S.; providing that 30
5656 certain insurers are entitled to recover specified 31
5757 expenses at the trial and appellate courts under 32
5858 certain circumstances; providing a transfer of funds; 33
5959 providing an appropriation; providing effective dates. 34
6060 35
6161 Be It Enacted by the Legislature of the State of Florida: 36
6262 37
6363 Section 1. Section 324.252, Florida Statutes, is created 38
6464 to read: 39
6565 324.252 Electronic insurance verification. — 40
6666 (1) In order to empower drivers in this state and reduce 41
6767 the incidence of automobile insurance fraud within this state, 42
6868 by July 1, 2023, the electronic credentialing system, as defined 43
6969 in s. 322.032(1), must display driver vehicle registration and 44
7070 insurance information, provide a driver with notification of any 45
7171 lapse in his or her insurance coverage needed for compliance 46
7272 with the financial responsibility requirements of this chapter, 47
7373 and allow the driver to update his or her policy information via 48
7474 the system. 49
7575 (2) By October 1, 2023, the department shall provide the 50
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8484 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
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8888 Legislature with recommendations on the means by which the 51
8989 department, law enforcement agencies, and other entities 52
9090 authorized by the de partment may electronically verify a 53
9191 driver's compliance with the financial responsibility 54
9292 requirements of this chapter. 55
9393 Section 2. Subsection (2) of section 501.165, Florida 56
9494 Statutes, is amended to read: 57
9595 501.165 Automatic renewal of service contract s.— 58
9696 (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS. — 59
9797 (a) A Any seller that sells, leases, or offers to sell or 60
9898 lease any service to a consumer pursuant to a service contract 61
9999 that has an automatic renewal provision, unless the consumer 62
100100 cancels that contract, shall disclose the automatic renewal 63
101101 provision clearly and conspicuously in the contract or contract 64
102102 offer. 65
103103 (b) A Any seller that sells or offers to sell any service 66
104104 to a consumer pursuant to a service contract the term of which 67
105105 is a specified period of 12 months or more and that 68
106106 automatically renews for a specified period of more than 1 69
107107 month, unless the consumer cancels the contract, shall provide 70
108108 the consumer with written or electronic notification of the 71
109109 automatic renewal provision. Not ification shall be provided to 72
110110 the consumer no less than 30 days or no more than 60 days before 73
111111 the cancellation deadline pursuant to the automatic renewal 74
112112 provision. Such notification shall disclose clearly and 75
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121121 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
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125125 conspicuously: 76
126126 1. That unless the consumer cancels the contract the 77
127127 contract will automatically renew. 78
128128 2. Methods by which the consumer may obtain details of the 79
129129 automatic renewal provision and cancellation procedure, whether 80
130130 by contacting the seller at a specified telephone number or 81
131131 address, by referring to the contract, or by any other method. 82
132132 (c) A seller that fails to comply with the requirements of 83
133133 this subsection violates is in violation of this subsection 84
134134 unless the seller demonstrates that: 85
135135 1. As part of the seller's routine business practice, the 86
136136 seller has established and implemented written procedures to 87
137137 comply with this section and enforces compliance with the 88
138138 procedures; 89
139139 2. Any failure to comply with this subsection is the 90
140140 result of error; and 91
141141 3. As part of the seller's routi ne business practice, 92
142142 where an error has caused the failure to comply with this 93
143143 subsection, the unearned portion of the contract subject to the 94
144144 automatic renewal provision is refunded as of the date on which 95
145145 the seller is notified of the error. 96
146146 (d) A seller that enters into or renews any service 97
147147 contract with a consumer which includes an automatic renewal 98
148148 provision must allow the consumer to cancel the service contract 99
149149 in the same manner, and by the same means, as the consumer 100
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158158 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
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162162 manifested his or her accept ance of the service contract. 101
163163 (e) This subsection does not apply to: 102
164164 1. A financial institution as defined in s. 655.005 or any 103
165165 depository institution as defined in 12 U.S.C. s. 1813(c)(2). 104
166166 2. A foreign bank maintaining a branch or agency licensed 105
167167 under the laws of any state of the United States. 106
168168 3. Any subsidiary or affiliate of an entity described in 107
169169 subparagraph 1. or subparagraph 2. 108
170170 4. A health studio as defined in s. 501.0125. 109
171171 5. Any entity licensed under chapter 624, chapter 627, 110
172172 chapter 634, chapter 636, or chapter 641. 111
173173 6. Any electric utility as defined in s. 366.02. 112
174174 7. Any private company as defined in s. 180.05 providing 113
175175 services described in chapter 180 which is competing against a 114
176176 governmental entity or has a governmental entity p roviding 115
177177 billing services on its behalf. 116
178178 (f)(e) A violation of this subsection renders the 117
179179 automatic renewal provision void and unenforceable. 118
180180 Section 3. Paragraphs (b) and (c) of subsection (22) of 119
181181 section 626.854, Florida Statutes, are amended, and paragraph 120
182182 (a) of that subsection is republished, to read: 121
183183 626.854 "Public adjuster" defined; prohibitions. —The 122
184184 Legislature finds that it is necessary for the protection of the 123
185185 public to regulate public insurance adjusters and to prevent the 124
186186 unauthorized practice of law. 125
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195195 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
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199199 (22)(a) Any following act by a public adjuster, a public 126
200200 adjuster apprentice, or a person acting on behalf of a public 127
201201 adjuster or public adjuster apprentice is prohibited and shall 128
202202 result in discipline as applicable under this part: 129
203203 1. Offering to a residential property owner a rebate, 130
204204 gift, gift card, cash, coupon, waiver of any insurance 131
205205 deductible, or any other thing of value in exchange for: 132
206206 a. Allowing a contractor, a public adjuster, a public 133
207207 adjuster apprentice, or a person a cting on behalf of a public 134
208208 adjuster or public adjuster apprentice to conduct an inspection 135
209209 of the residential property owner's roof; or 136
210210 b. Making an insurance claim for damage to the residential 137
211211 property owner's roof. 138
212212 2. Offering, delivering, receivin g, or accepting any 139
213213 compensation, inducement, or reward for the referral of any 140
214214 services for which property insurance proceeds would be used for 141
215215 roofing repairs or replacement. 142
216216 (b) Notwithstanding the fine set forth in s. 626.8698, a 143
217217 public adjuster or p ublic adjuster apprentice may be subject to 144
218218 a fine not to exceed $10,000 per act for a violation of this 145
219219 subsection and a fine not to exceed $20,000 per act for a 146
220220 violation of this subsection that occurs during a state of 147
221221 emergency declared by executive or der or proclamation of the 148
222222 Governor pursuant to s. 252.36 . 149
223223 (c) A person who engages in an act prohibited by this 150
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232232 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
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236236 subsection and who is not a public adjuster or a public adjuster 151
237237 apprentice, or is not otherwise exempt from licensure, is guilty 152
238238 of the unlicensed practice of public adjusting and may be: 153
239239 1. Subject to all applicable penalties set forth in this 154
240240 part. 155
241241 2. Notwithstanding subparagraph 1., subject to a fine not 156
242242 to exceed $10,000 per act for a violation of this subsection and 157
243243 a fine not to exceed $20,000 per act for a violation of this 158
244244 subsection that occurs during a state of emergency declared by 159
245245 executive order or proclamation of the Governor pursuant to s. 160
246246 252.36. 161
247247 Section 4. Subsection (9) of section 633.126, Florida 162
248248 Statutes, is amended, subsection (10) is added to that section, 163
249249 and subsection (2) of that section is republished, to read: 164
250250 633.126 Investigation of fraudulent insurance claims and 165
251251 crimes; immunity of insurance companies supplying information. — 166
252252 (2) If an insurance company has reason to suspect that a 167
253253 fire or explosion loss to its insured's real or personal 168
254254 property was caused by intentional means, the company shall 169
255255 notify the State Fire Marshal and shall furnish her or him with 170
256256 all material acquired by the company during it s investigation. 171
257257 The State Fire Marshal may adopt rules to implement this 172
258258 subsection. 173
259259 (9) If an insurance company fails or otherwise refuses to 174
260260 comply with this section, the department may impose an 175
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269269 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
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273273 administrative fine of not more than $2,000 per day for such 176
274274 failure until the department deems the insurance company to be 177
275275 in compliance A person who willfully violates this section 178
276276 commits a misdemeanor of the first degree, punishable as 179
277277 provided in s. 775.082 or s. 775.083 . 180
278278 (10) The Division of Investigat ive and Forensic Services 181
279279 may adopt reasonable rules as are necessary to administer this 182
280280 section. Such rules must meet all of the following requirements: 183
281281 (a) They may not enlarge upon or extend the provisions of 184
282282 this section. 185
283283 (b) They must identify specific factors that determine the 186
284284 grades of penalty. 187
285285 (c) They must specify mitigating and aggravating factors 188
286286 for a violation of this section. 189
287287 Section 5. Effective March 1, 2023, present paragraphs 190
288288 (b), (c), and (d) of subsection (3) of section 634 .095, Florida 191
289289 Statutes, are redesignated as paragraphs (d), (e), and (f), 192
290290 respectively, new paragraphs (b) and (c) are added to that 193
291291 subsection, and paragraph (a) of that subsection is amended, to 194
292292 read: 195
293293 634.095 Prohibited acts. —Any service agreement comp any or 196
294294 salesperson that engages in one or more of the following acts 197
295295 is, in addition to any applicable denial, suspension, 198
296296 revocation, or refusal to renew or continue any appointment or 199
297297 license, guilty of a misdemeanor of the second degree, 200
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306306 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
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310310 punishable as provided in s. 775.082 or s. 775.083: 201
311311 (3) Issuing or causing to be issued any advertisement that 202
312312 which: 203
313313 (a) Does not fully disclose in a written advertisement, in 204
314314 at least 12-point, boldfaced type, the name, address, and 205
315315 Florida Company Code license number of the service agreement 206
316316 company. 207
317317 (b) Does not fully disclose in a radio or television 208
318318 advertisement the full legal name of the licensed salesperson or 209
319319 the service agreement company. 210
320320 (c) Does not fully identify the soliciting licensed 211
321321 salesperson's full legal name and license number when the 212
322322 salesperson begins, and the soliciting salesperson's telephone 213
323323 number when the salesperson concludes, each outbound telephone 214
324324 solicitation. For the purposes of this paragraph, the actual 215
325325 telephone number of the salesperson may be the number on file 216
326326 with the department or the number at which the salesperson may 217
327327 be contacted. 218
328328 Section 6. Subsection (11) of section 775.15, Florida 219
329329 Statutes, is amended to read: 220
330330 775.15 Time limitations; general time limitations; 221
331331 exceptions.— 222
332332 (11) A prosecution for a felony violation of s. 440.105 or 223
333333 s. 817.234 ss. 440.105 and 817.234 must be commenced within 5 224
334334 years after the violation is committed. 225
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343343 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
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347347 Section 7. Subsection (5) of section 817.234, Florida 226
348348 Statutes, is amended t o read: 227
349349 817.234 False and fraudulent insurance claims. — 228
350350 (5)(a) Any insurer damaged as a result of a violation of 229
351351 any provision of this section when there has been a criminal 230
352352 adjudication of guilt shall have a cause of action to recover 231
353353 compensatory damages, plus all reasonable investigation and 232
354354 litigation expenses, including attorney attorneys' fees, at the 233
355355 trial and appellate courts. 234
356356 (b) If an insurer damaged as a result of a violation of 235
357357 any provision of this section has reported the possible 236
358358 fraudulent insurance act to the Division of Investigative and 237
359359 Forensic Services pursuant to s. 626.9891 and if there has been 238
360360 a criminal adjudication of guilt, the insurer is entitled to 239
361361 recover reasonable investigation and litigation expenses, 240
362362 including attorney fees, at the trial and appellate courts. 241
363363 Section 8. The nonrecurring sum of $1,413,270 for Fiscal 242
364364 Year 2022-2023 shall be transferred by nonoperating budget 243
365365 authority from the Insurance Regulatory Trust Fund of the 244
366366 Department of Financial Servi ces to the Highway Safety Operating 245
367367 Trust Fund of the Department of Highway Safety and Motor 246
368368 Vehicles to implement the electronic insurance verification 247
369369 provisions of s. 324.252, Florida Statutes. 248
370370 Section 9. For the 2022-2023 fiscal year, the nonrecurr ing 249
371371 sum of $1,413,270 from the Highway Safety Operating Trust Fund 250
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380380 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
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384384 is appropriated to the Information Systems Administration budget 251
385385 entity in the Department of Highway Safety and Motor Vehicles to 252
386386 implement the electronic insurance verification provisions 253
387387 required under s. 324.252, Florida Statutes. 254
388388 Section 10. Except as otherwise expressly provided in this 255
389389 act, this act shall take effect upon becoming a law. 256