The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1002
INTRODUCER: Senators Stewart and Hooper
SUBJECT: Motor Vehicle Glass
DATE: March 17, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Thomas Knudson BI Favorable
2. Renner McKay CM Pre-meeting
3. RC
I. Summary:
SB 1002 revises definitions under the Florida Motor Vehicle Repair Act to ensure that businesses
that calibrate or recalibrate advanced driver assistance systems associated with windshields are
regulated under the Act. The bill prohibits motor vehicle repair shops, their employees, and their
representatives, from offering an inducement to a customer in exchange for making an insurance
claim for motor vehicle glass replacement or repair. Finally, the bill prohibits a policyholder, or
any other person, from entering an assignment agreement of post-loss benefits for motor vehicle
glass replacement or repair, including for calibration or recalibration of advanced driver
assistance systems.
It is not anticipated that the bill will have any significant fiscal impact on state or local
government.
The bill is effective July 1, 2023.
II. Present Situation:
Automobile Insurance Coverage Related to Windshield Repair
Comprehensive motor vehicle insurance provides coverage for damage to the insured vehicle
caused by events other than a collision.
1
This coverage type also covers damage to the vehicle’s
windshield, and is required by most lenders for purposes of protecting the financial interest of the
lender.
2
For insured vehicles with comprehensive coverage, insurers may not apply the insurance
policy deductible to the damaged windshield.
3
1
Florida Department of Financial Services, Automobile Insurance Toolkit, available at automobile-insurance-toolkit (last
accessed March 17, 2023).
2
Id.
3
Section 627.7288, F.S.
REVISED: BILL: SB 1002 Page 2
In-Network Versus Out-of-Network Motor Vehicle Repair Shops
Insurers frequently create preferred vendor networks with motor vehicle repair shops to expedite
windshield repairs and negotiate rates for services to be paid directly by the insurer.
4
An out-of-
network motor vehicle repair shop receives payment either from the insured in the form of direct
payment or from the insurer by obtaining an assignment of benefits (AOB) of the insured’s
insurance policy.
5
Where the policyholder has executed an AOB with the out-of-network motor
vehicle repair shop, the shop can either negotiate with, or file a lawsuit against, the insurer if the
two sides do not agree on the claim amount.
6
In Florida, the insured has the right to select either an insurer’s preferred motor vehicle repair
shop or one not in the insurer’s preferred network of motor vehicle repair shops to repair the
damaged windshield.
7
However, an insurer that requires a particular repair shop to restore the
damaged windshield, must require that particular repair shop to restore the damaged windshield
to its pre-accident condition no matter the cost to the insurer.
8
An insurer may not require the use
of replacement parts that are not at least equivalent in kind and quality to the damaged parts prior
to the loss.
9
Windshield Litigation
The Florida Department of Financial Services provided the following information on the volume
of windshield litigation involving an AOB
10
:
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Auto Glass
Lawsuits
435 1,200 3,329 6,753 11,077 17,768 21,851 14,539 16,168 21,094 24,080 33,196
Florida Motor Vehicle Repair Act
The Department of Agriculture and Consumer Services (DACS) regulates motor vehicle repair
shops in Florida under the Florida Motor Vehicle Repair Act.
11
This Act requires that all motor
vehicle repair shops, with limited exceptions, register with the DACS.
12
A motor vehicle repair
shop may be fixed or mobile and includes a person or business that does motor vehicle glass
work for compensation.
13
Under the Act, it is unlawful for a motor vehicle repair shop or its
employee to engage in various activities such as misrepresenting that repairs have been made to
4
Dale Parker and Brendan McKay, Florida Auto Glass Claims: A Cracked System, Trial Advocate Quarterly Fall 2016
(Westlaw Citation: 35 No. 4 Trial Advoc. Q. 20), available at Florida-Auto-Glass-Claims-A-Cracked-System (last accessed
March 17, 2023).
5
Id.
6
Id.
7
Ibid, fn. 1.
8
Section 626.9743(3), F.S.
9
Section 626.9743(4), F.S.
10
Data provided by the Florida Department of Financial Services to the Senate Committee on Banking and Insurance on
January 19, 2023 (on file with the Senate Banking and Insurance Committee).
11
Sections 559.901-559.9221, F.S.
12
Section 559.904, F.S.
13
Section 559.903(6) and (7), F.S. BILL: SB 1002 Page 3
a motor vehicle or fraudulently altering any customer contract, estimate, invoice, or other
document.
14
The Act provides for various remedies for unlawful acts by motor vehicle repair
shops, including notices of noncompliance, administrative fines, orders to cease and desist,
probation of registrants, and suspension or revocation of registrations.
15
In addition, a customer
injured by a violation of the Motor Vehicle Repair Act may bring an action against a repair
shop.
16
The prevailing party is entitled to damages plus court costs and reasonable attorney
fees.
17
Use of Inducements by Motor Vehicle Repair Shops
The Florida Motor Vehicle Repair Act does not prohibit motor vehicle repair shops from offering
inducements to consumers. Some out-of-network motor vehicle repair shops advertise
inducements to compete for business with in-network vehicle repair shops, while others offer
inducements if a consumer files a qualified insurance claim for windshield replacement.
18
Regulation of Inducements in Related Insurance Fields
Prohibited Practices by Insurance Agents
Insurance agents are subject to prosecution under the Unfair Insurance Trade Practices Act
19
for
knowingly misrepresenting the benefits, advantages, conditions, or terms of any insurance
policy,
20
offering inducements to enter into an insurance contract in many settings,
21
and causing
false insurance claims to be filed.
22
Prohibited Practices by Public Adjusters
Public adjusters are subject to prosecution for unfair and deceptive insurance practices
23
if the
adjuster offers a monetary or other valuable inducement to invite a policyholder to submit a
claim.
24
Such unfair and deceptive trade practices also include making an untrue, deceptive, or
misleading representation with respect to the business of insurance,
25
inviting a policyholder to
submit a claim when the policyholder does not have coverage,
26
or inviting a policyholder to
submit a claim by stating that there is “no risk” to the policyholder by submitting such claim.
27
14
Section. 559.920, F.S.
15
Section 559.921, F.S.
16
Section 559.921(1), F.S.
17
Id.
18
See, e.g.: FREE WINDSHIELD “up to $150 cash back at the time of service”; Cash Back Quote “Get up to $100 - $200
Cash Back with FL Insurance” (last accessed March 17, 2023).
19
Section 626.9541, F.S.
20
Section 626.9541(1)(a)1., F.S.
21
Section 626.9541(1)(h), F.S.
22
Section 626.9541(1)(u)1., F.S.
23
Section 626.854(7), F.S.
24
Section 626.854(7)(a)2., F.S.
25
Section 626.854(7), F.S.
26
Section 626.854(7)(a)1., F.S.
27
Section 626.854(7)(a)3., F.S. BILL: SB 1002 Page 4
Advanced Driver Assistance Systems
Advanced driver assistance systems (ADAS) are technological features of a motor vehicle that
are designed to increase the safety of driving a vehicle by reducing traffic crashes. Traffic
crashes are a leading cause of death in the United States for people ages 1–54 and each year, 1.35
million people are killed on roadways around the world. More than half of those killed are
pedestrians, motorcyclists, or cyclists.
28
Such technologies help keep the driver and passengers safe, but also other drivers and
pedestrians. Driver assistance systems may warn of an impending crash, while others are
designed to take action to avoid a crash. A forward collision warning system monitors the
vehicle’s speed, the speed of the vehicle in front of it and the distance between the vehicles. A
lane departure warning system monitors lane markings and alerts the driver when it detects that
the vehicle is drifting out of its lane. Automatic emergency braking systems apply the vehicle’s
brakes automatically in time to avoid or mitigate an impending forward crash with another
vehicle. Other systems include backup cameras, adaptive cruise control, lane centering, blind
spot warning, lane keeping assistance, and automatic high beams.
29
These ADAS functions are typically based on one front camera or on a front stereovision
camera. The camera information may be supplemented with information from other sensors like
light detection and ranging or radio detection. The ADAS cameras are located inside the car,
against the front windshield, behind the central rear view mirror. The ADAS camera field of
view is located in the wiper area to keep the glass in front of the camera as clean as possible.
30
An ADAS sensor calibration is required whenever a sensor's aiming is disturbed in any way.
This can occur in a collision, even a minor fender bender, or be a byproduct of common service
work such as windshield replacement, suspension repairs or wheel alignment.
31
III. Effect of Proposed Changes:
Section 1 amends s. 559.903, F.S., to:
Define the term “advanced driver assistance system” to mean “any motor vehicle electronic
safety system that is associated with motor vehicle glass and is designed to support the driver
and motor vehicle in a manner intended to increase motor vehicle safety and reduce losses
associated with motor vehicle crashes.”
Revise the definition of the term “motor vehicle repair” to include the “calibration or
recalibration of advanced driver assistance systems.”
28
Road Traffic Injuries and Deaths—A Global Problem, Centers for Disease Control and Prevention, available at global-
road-safety (last accessed March 17, 2023).
29
Driver assistance technologies, National Highway Traffic Safety Administration, available at driver-assistance-
technologies (last accessed March 17, 2023).
30
Advanced Driver Assistance Systems, On-Road Intelligent Vehicles, Rahul Kala, 2016, available at advanced-driver-
assistance-systems (last accessed March 17, 2023).
31
ADAS Sensor Calibration Increases Repair Costs, available at https://www.aaa.com/autorepair/articles/adas-sensor-
calibration-increases-repair-costs (last accessed March 17, 2023). BILL: SB 1002 Page 5
These changes will ensure that businesses that calibrate or recalibrate electronic safety systems
associated with windshields are regulated by the DACS pursuant to the Florida Motor vehicle
Repair Act.
Section 2 amends s. 559.920, F.S, to provide that a motor vehicle repair shop may not provide an
inducement in the form of a rebate, gift, gift card, cash, coupon, or any other thing of value, in
exchange for making an insurance claim for motor vehicle glass replacement or repair, including
the calibration or recalibration of an advanced driver assistance system. A nonemployee who is
compensated for soliciting insurance claims is also prohibited from offering such inducements.
Motor vehicle repair shops would be subject to disciplinary actions by the DACS for violations
of the bill’s provisions.
Section 3 creates s. 627.7289, F.S., to prohibit a policyholder, or any other person, from entering
an assignment agreement of post-loss benefits for motor vehicle glass replacement or repair,
including for calibration or recalibration of advanced driver assistance systems. This prohibition
will apply to motor vehicle insurance policies issued or renewed in this state on or after July 1,
2023. An “assignment agreement” includes any agreement whereby post-loss benefits under a
motor vehicle insurance policy are assigned or transferred to a person providing services for
motor vehicle glass replacement or repair, including inspecting, protecting, repairing, restoring,
or replacing the motor vehicle glass or calibrating or recalibrating advanced driver assistance
systems.
The bill provides an effective date of July 1, 2023.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None identified. BILL: SB 1002 Page 6
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
Motor vehicle repair shops will be prohibited from providing certain inducements to
customers. This may negatively affect their businesses.
Indeterminate with respect to insurance premiums. A reduction in auto glass costs
resulting in a reduction in insurance premiums for auto comprehensive coverage is
difficult to estimate as comprehensive coverage includes a wide variety of coverages
including, but not limited to, flood, hail, theft, and hurricane.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 559.903 and 559.920 of the Florida Statutes.
This bill creates section 627.7289 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.