CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 1 of 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 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; authorizing a landlord to offer a 5 tenant the option to pay the security deposit in a 6 specified manner; requiring the landlord to notify the 7 tenant of certain unpaid fees and costs within a 8 specified time after the conclusion of the tenancy; 9 prohibiting the landlord from filing an insurance 10 claim within a specified period of time; prov iding 11 requirements for the landlord and insurer if an 12 insurance claim to recover certain losses is filed; 13 prohibiting the landlord from accepting certain 14 payments; requiring the landlord to provide certain 15 written notice to the tenant; requiring a written 16 agreement signed by the landlord, or the landlord's 17 agent, and the tenant if the tenant decides to pay a 18 fee in lieu of the security deposit; prohibiting the 19 written agreement from contradicting specified laws; 20 requiring that the written agreement contain certain 21 information; requiring a specified disclosure in the 22 written agreement; providing options for paying the 23 fee; specifying that certain fees, insurance products, 24 and surety bonds are not security deposits; specifying 25 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 2 of 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 that landlords have exclusive dis cretion as to whether 26 to offer tenants the option to pay a fee in lieu of a 27 security deposit; prohibiting a landlord from 28 approving or denying an application for occupancy 29 based on a prospective tenant's choice to pay a fee in 30 lieu of a security deposit; r equiring that landlords 31 who offer a tenant the fee option offer such option to 32 all new tenants renting a dwelling unit on the same 33 premises; providing an exception; providing 34 construction; providing applicability; providing an 35 effective date. 36 37 Be It Enacted by the Legislature of the State of Florida: 38 39 Section 1. Section 83.491, Florida Statutes, is created to 40 read: 41 83.491 Fee in lieu of security deposit. — 42 (1)(a) If a rental agreement requires a security deposit, 43 a landlord may offer a tenant the option to pay a fee in lieu of 44 a security deposit. 45 (b) A landlord may provide a tenant the option of paying a 46 security deposit in monthly installments in an amount that is 47 agreed upon between the tenant and the landlord while 48 participating in the fee pr ogram. 49 (2)(a) If a tenant agrees to pay a fee in lieu of a 50 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 3 of 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 security deposit, the landlord must notify the tenant within 30 51 days after the conclusion of the tenancy if there are any costs 52 or fees due resulting from unpaid rent, fees, or other 53 obligations under the rental agreement, including, but not 54 limited to, costs required for repairing damage to the premises 55 beyond normal wear and tear. 56 (b) A landlord may not submit a claim to an insurer to 57 recover the landlord's losses associated with unpaid rent, fees, 58 or other obligations under the rental agreement, including, but 59 not limited to, costs required for repairing damage to the 60 premises beyond normal wear and tear until at least 15 days 61 after providing the tenant with the required notice under 62 paragraph (a). 63 1. The landlord must include an itemized list of any 64 unpaid amounts and the dates such amounts were due, 65 documentation supporting any itemized damages and costs of 66 repairs, and a copy of any written objection or report of any 67 communication of objec tion by the tenant when the landlord 68 submits a claim to an insurer. 69 2. If an insurer pays a claim that was submitted under 70 this subsection to a landlord and the insurer has subrogation 71 rights, the insurer may, within 1 year after the tenancy that 72 was the subject of the claim ends, seek reimbursement from the 73 tenant for the amounts paid to the landlord. If the insurer 74 seeks reimbursement from the tenant, the following apply: 75 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 4 of 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 a. The insurer must provide the tenant with all 76 documentation for losses which t he landlord provided to the 77 insurer in support of the landlord's claim and a copy of the 78 settlement statement documenting the insurer's payment of the 79 landlord's claim. 80 b. The tenant retains any defenses against the insurer 81 which the tenant would otherwi se have against the landlord. 82 3. A landlord may not accept payment from both a tenant 83 and an insurer for amounts associated with the same rent, fees, 84 or damages. 85 (3) If a landlord offers a tenant the option to pay a fee 86 in lieu of a security deposit, t he landlord must notify the 87 tenant in writing of all of the following: 88 (a) That the tenant has the option to pay a security 89 deposit instead of the fee at any time. 90 (b) That the tenant may, at any time, terminate the 91 agreement to pay the fee in lieu of the security deposit and 92 instead pay a security deposit as listed in a rental agreement 93 between the landlord and tenant or, if a security deposit was 94 not agreed upon in a rental agreement between the landlord and 95 tenant, in the amount that is otherwise offered to new tenants 96 for a substantially similar dwelling unit on the date that the 97 tenant terminates the agreement. 98 (c) That the tenant may choose to pay the securit y deposit 99 in monthly installments in an amount that is agreed upon between 100 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 5 of 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 the landlord and tenant while participating in the fee program. 101 (d) Whether any additional charges apply for the options 102 provided in paragraphs (a) and (b). 103 (e) The amount of th e payments required for each option 104 the landlord offers. 105 (f) That the fee is nonrefundable, if applicable. 106 (g) That the fee is only for securing occupancy without 107 paying a required security deposit. 108 (h) That the fee payment does not limit or change t he 109 tenant's obligation to pay rent and fees, if any, under the 110 rental agreement or limit or change the tenant's obligation to 111 pay the costs of repairing damage to the premises beyond normal 112 wear and tear. 113 (i) That if the landlord uses any portion of the fee to 114 purchase insurance, the tenant is not insured and is not a 115 beneficiary of the landlord's insurance coverage, and that the 116 insurance does not limit or change the tenant's obligations to 117 pay rent and fees under the rental agreement or change the 118 tenant's obligation to pay the costs of repairing damage to the 119 premises beyond normal wear and tear. 120 (4)(a) If a tenant decides to pay a fee in lieu of a 121 security deposit, a written agreement to collect the fee must be 122 signed by the landlord, or the landlord 's agent, and the tenant. 123 The written agreement may not contain any clause that 124 contradicts s. 83.45 or s. 83.47. The written agreement must, at 125 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 6 of 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 a minimum, specify all of the following: 126 1. The amount of the fee, which may not be increased 127 during the term of the rental agreement. 128 2. How and when the fee is to be collected. 129 3. The process and timeframe during which a tenant must 130 pay the security deposit specified in the rental agreement if 131 the tenant defaults on paying the fee, and that such default 132 will not adversely affect the tenant's credit rating if the 133 security deposit is timely paid. 134 4. That the written agreement may be terminated at any 135 time as long as the tenant pays the amount of the security 136 deposit specified in the rental agreement. 137 5. If the tenant pays the amount of the security deposit 138 specified in the rental agreement, then the tenant's default on 139 paying the fee or termination of the written agreement may not 140 adversely impact the tenant's credit report. 141 (b) The written agreement spec ified under paragraph (a) 142 must also include a disclosure in substantially the following 143 form: 144 145 FEE IN LIEU OF SECURITY DEPOSIT 146 147 THIS FEE IS NOT A SECURITY DEPOSIT AND PAYMENT OF THE 148 FEE DOES NOT ABSOLVE THE TENANT OF ANY OBLIGATIONS 149 UNDER THE RENTAL AGREE MENT, INCLUDING THE OBLIGATION 150 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 7 of 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 TO PAY RENT AS IT BECOMES DUE AND ANY COSTS AND 151 DAMAGES BEYOND NORMAL WEAR AND TEAR WHICH THE TENANT 152 OR HIS OR HER GUESTS MAY CAUSE. 153 154 THE TENANT MAY TERMINATE THIS AGREEMENT AT ANY TIME 155 AND STOP PAYING THE FEE AND INSTEAD PAY THE SECURITY 156 DEPOSIT AS PROVIDED IN SECTION 83.491, FLORIDA 157 STATUTES. 158 159 THIS AGREEMENT HAS BEEN ENTERED INTO VOLUNTARILY BY 160 BOTH PARTIES AND THE TENANT AGREES TO PAY THE LANDLORD 161 A FEE IN LIEU OF A SECURITY DEPOSIT AS AUTHORIZED 162 UNDER SECTION 83.491, FLORI DA STATUTES. IF THE 163 LANDLORD USES ANY PORTION OF THE TENANT'S FEE TO 164 PURCHASE INSURANCE, THE TENANT IS NOT INSURED AND IS 165 NOT A BENEFICIARY OF SUCH COVERAGE, AND THE INSURANCE 166 DOES NOT CHANGE THE TENANT'S FINANCIAL OBLIGATIONS 167 UNDER THE RENTAL AGREEMENT. 168 169 THIS DISCLOSURE IS BASIC. PLEASE REFER TO PART II OF 170 CHAPTER 83, FLORIDA STATUTES, TO DETERMINE YOUR LEGAL 171 RIGHTS AND OBLIGATIONS. 172 173 (5) A fee in lieu of a security deposit may be: 174 (a) A recurring monthly fee, payable on the same date that 175 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 8 of 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 the rent payment is due under the rental agreement; or 176 (b) Payable upon a schedule that the landlord and tenant 177 choose and as specified in the written agreement. 178 (6) A fee collected under this section, or an insurance 179 product or a surety bond accepted, by a landlor d in lieu of a 180 security deposit is not a security deposit as defined in s. 181 83.43(12). 182 (7) A landlord has exclusive discretion as to whether to 183 offer tenants the option to pay a fee in lieu of a security 184 deposit and is not required to offer such fee optio n to tenants. 185 However, if a landlord offers a tenant an option to pay a fee in 186 lieu of a security deposit, the landlord may not use a 187 prospective tenant's choice to pay, or offer to pay, a fee in 188 lieu of a security deposit as criteria in the determination to 189 approve or deny an application for occupancy, and the landlord 190 must also offer all new tenants renting a dwelling unit on the 191 same premises the option to pay a fee in lieu of a security 192 deposit, unless the landlord chooses to prospectively terminate 193 the fee option for all new rental agreements. 194 (8)(a) This section does not: 195 1. Require a fee collected in lieu of a security deposit 196 to be used to purchase an insurance product or a surety bond; or 197 2. Prohibit a tenant from being offered or sold an 198 insurance product or a surety bond to present to the landlord in 199 lieu of a security deposit if the offer or sale of such 200 CS/HB 133, Engrossed 1 2023 CODING: Words stricken are deletions; words underlined are additions. hb0133-02-e1 Page 9 of 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 insurance product or surety bond complies with the laws of this 201 state. 202 (b) Acceptance by a landlord of an insurance product or a 203 surety bond that is purchased or procured by a tenant, a 204 landlord, or an agent of the landlord may not be considered an 205 offer on the part of the landlord to allow a tenant to pay a fee 206 in lieu of a security deposit for the purposes of subsection 207 (7). 208 (9) This section applies to rental agreements entered into 209 or renewed on or after July 1, 2023. 210 Section 2. This act shall take effect July 1, 2023. 211