Florida 2025 Regular Session

Florida House Bill H1429 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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2	2
3	3	HB 1429 2025
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5	5
6	6
7	7	CODING: Words stricken are deletions; words underlined are additions.
8	8	hb1429-00
9	9	Page 1 of 168
10	10	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
11	11
12	12
13	13
14	14	A bill to be entitled 1
15	15	An act relating to insurance regulations; amending s. 2
16	16	48.151, F.S.; providing that the Chief Financial 3
17	17	Officer is the agent for service of process on health 4
18	18	maintenance organizations; amending s. 252.63, F.S.; 5
19	19	revising the content of a publication from the 6
20	20	Commissioner of Insurance Regulation relating to 7
21	21	orders applicable to insurance in areas under the 8
22	22	state of emergency; amending s. 624.4085, F.S.; 9
23	23	revising the definition of the term "life and health 10
24	24	insurer"; amending s. 624.422, F.S.; providing that 11
25	25	the appointment of the Chief Financial Officer for 12
26	26	service of process applies to insurers withdrawing 13
27	27	from and ceasing operations in this state until all 14
28	28	insurers' liabilities in this state are extinguished; 15
29	29	amending s. 624.45, F.S.; conforming a provision to 16
30	30	changes made by the act; amending s. 624.610, F.S.; 17
31	31	removing certain provisions relating to credits 18
32	32	allowed in specified reinsurance circumstances and 19
33	33	relating to assuming insurers' accreditations; 20
34	34	requiring filing fees from reinsurers requesting to 21
35	35	operate in this state; removing applicability 22
36	36	provisions; amending s. 626.9651, F.S.; requiring the 23
37	37	Office of Insurance Regulation and the Financial 24
38	38	Services Commission to adopt rules on cybersecurity of 25
39	39
40	40	HB 1429 2025
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42	42
43	43
44	44	CODING: Words stricken are deletions; words underlined are additions.
45	45	hb1429-00
46	46	Page 2 of 168
47	47	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
48	48
49	49
50	50
51	51	certain insurance data; providing requirements for 26
52	52	such rules; providing duties of the office; amending 27
53	53	s. 627.062, F.S.; prohibiting personal residential 28
54	54	property insurers from submitting more than one "use 29
55	55	and file" filing under certain circumstances; 30
56	56	providing an exception; amending s. 627.0621, F.S.; 31
57	57	requiring certain rate filings with the office from 32
58	58	residential property insurers to include rate 33
59	59	transparency reports; providing for acceptance or 34
60	60	rejection by the office of such reports; providing 35
61	61	requirements for such reports; requiring insurers to 36
62	62	provide such reports to consumers; requiring the 37
63	63	office to define terms used in such reports; requiring 38
64	64	the office to establish and maintain a specified 39
65	65	center on its website; providing requirements for the 40
66	66	website; amending s. 627.0645, F.S.; revising 41
67	67	requirements of rate filing with the office; amending 42
68	68	s. 627.0651, F.S.; prohibiting motor vehicle insurers 43
69	69	from submitting more than one "use and file" filing 44
70	70	under certain circumstances; amending s. 627.4554, 45
71	71	F.S.; requiring that certain forms be posted on the 46
72	72	website of the Department of Financial Services, 47
73	73	rather than the office; amending s. 627.6699, F.S.; 48
74	74	removing and revising definitions; removing provisions 49
75	75	relating to the creation of the Florida Small Employer 50
76	76
77	77	HB 1429 2025
78	78
79	79
80	80
81	81	CODING: Words stricken are deletions; words underlined are additions.
82	82	hb1429-00
83	83	Page 3 of 168
84	84	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
85	85
86	86
87	87
88	88	Health Reinsurance Program; amending s. 627.711, F.S .; 51
89	89	requiring the office to contract with a state 52
90	90	university to design, operate, upgrade, and maintain a 53
91	91	specified database; requiring property insurers to 54
92	92	file certain policyholder forms in the database; 55
93	93	requiring the commission to adopt rules; amending s. 56
94	94	627.7152, F.S.; removing provisions relating to 57
95	95	requirements for reporting and rulemaking regarding 58
96	96	property insurance claims paid under assignment 59
97	97	agreements; creating s. 627.9145, F.S.; providing 60
98	98	reporting requirements for residential property 61
99	99	insurers; requiring the commission to adopt rules; 62
100	100	amending s. 627.915, F.S.; revising reporting 63
101	101	requirements for private passenger automobile 64
102	102	insurers; requiring the commission to adopt rules; 65
103	103	providing requirements for such rules; removing 66
104	104	reporting requirement p rovisions for certain insurers; 67
105	105	amending ss. 628.081 and 628.091, F.S.; removing the 68
106	106	requirement that domestic insurer incorporators 69
107	107	execute articles of incorporation and file them with 70
108	108	the office in triplicate; amending s. 628.111, F.S.; 71
109	109	removing the requirement that domestic insurers make 72
110	110	copies of amendments to articles of incorporation in 73
111	111	triplicate; amending s. 628.461, F.S.; specifying the 74
112	112	method of sending notifications regarding transactions 75
113	113
114	114	HB 1429 2025
115	115
116	116
117	117
118	118	CODING: Words stricken are deletions; words underlined are additions.
119	119	hb1429-00
120	120	Page 4 of 168
121	121	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
122	122
123	123
124	124
125	125	or proposed transactions of voting securities of stock 76
126	126	insurers or controlling companies; revising the method 77
127	127	of filing certain statements; amending s. 628.4615, 78
128	128	F.S.; revising the method by which amendments to 79
129	129	certain applications must be sent to specialty 80
130	130	insurers; amending s. 628.717, F.S.; revising 81
131	131	requirements for the office's responses upon receipt 82
132	132	of articles of incorporation; amending s. 628.719, 83
133	133	F.S.; revising the method by which mutual insurance 84
134	134	holding companies show their adoption of article of 85
135	135	incorporation amendments and deliver the amendments to 86
136	136	the office; revising the requirements for the office's 87
137	137	responses upon receipt of amendments; amending s. 88
138	138	628.910, F.S.; removing the requirement that captive 89
139	139	insurance company incorporators file articles of 90
140	140	incorporation in triplicate; revising the office's 91
141	141	responses upon receipt of captive insurance company 92
142	142	articles of incorporation; amending s. 629.011, F.S.; 93
143	143	revising and providing definitions; amending s. 94
144	144	629.071, F.S.; authorizing assessable and 95
145	145	nonassessable reciprocal insurers, rather than 96
146	146	domestic reciprocal insurers, to transact insurance if 97
147	147	they maintain specified amounts of surplus funds; 98
148	148	amending s. 629.081, F.S.; conforming a provision to 99
149	149	changes made by the act; creating s. 629.082, F.S.; 100
150	150
151	151	HB 1429 2025
152	152
153	153
154	154
155	155	CODING: Words stricken are deletions; words underlined are additions.
156	156	hb1429-00
157	157	Page 5 of 168
158	158	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
159	159
160	160
161	161
162	162	providing that attorneys in fact of reciprocals are 101
163	163	affiliates of the reciprocals for specified purposes; 102
164	164	creating s. 629.1015, F.S.; requiring documentation 103
165	165	supporting that fees, commissions, and other financial 104
166	166	considerations and payments to affiliates by 105
167	167	reciprocal insurers are fair and reasonable; providing 106
168	168	guidelines for the office in determining whether the 107
169	169	fees, commissions, and other financial considerations 108
170	170	and payments are fair and reasonable; providing 109
171	171	requirements for documentation of such fees; amending 110
172	172	s. 629.121, F.S.; providing that certain bonds fil ed 111
173	173	with the office as security are filed by attorneys in 112
174	174	fact, rather than attorneys of domestic reciprocal 113
175	175	insurers; increasing the bond amount; creating s. 114
176	176	629.162, F.S.; authorizing reciprocal insurers to 115
177	177	require subscriber contributions; providing disc losure 116
178	178	and reporting requirements for subscriber 117
179	179	contributions; creating s. 629.163, F.S.; authorizing 118
180	180	reciprocal insurers to establish subscriber savings 119
181	181	accounts; providing construction; providing 120
182	182	requirements for subscriber savings accounts; creating 121
183	183	s. 629.164, F.S.; authorizing reciprocal insurers to 122
184	184	make distributions to subscribers from subscriber 123
185	185	savings accounts; granting to subscribers' advisory 124
186	186	committees sole authority to authorize distributions, 125
187	187
188	188	HB 1429 2025
189	189
190	190
191	191
192	192	CODING: Words stricken are deletions; words underlined are additions.
193	193	hb1429-00
194	194	Page 6 of 168
195	195	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
196	196
197	197
198	198
199	199	subject to prior written approval by the office; 126
200	200	providing requirements for reciprocal insurers that 127
201	201	prohibit subscribers from receiving distributions for 128
202	202	a specified period of time; providing construction; 129
203	203	authorizing reciprocal insurers to return to 130
204	204	subscribers unused premiums, savings, and credits 131
205	205	accruing to their accounts; authorizing domestic 132
206	206	reciprocal insurers to pay portions of unassigned 133
207	207	funds; providing distribution limits; prohibiting 134
208	208	distribution discriminations; amending s. 629.171, 135
209	209	F.S.; revising requirements for filing with the office 136
210	210	annual statements by reciprocal insurers; amending s. 137
211	211	629.181, F.S; replacing surplus deposits of 138
212	212	subscribers with subscriber contributions; providing 139
213	213	limits on subscriber contributions; amending s. 140
214	214	629.201, F.S.; requiring that each domestic reciprocal 141
215	215	insurer have a subscribers' advisory committee; 142
216	216	requiring that such committee be formed in compliance 143
217	217	with specified laws; requiring that rules and 144
218	218	amendments adopted by subscribers have prior approval 145
219	219	by the office; revising subscribers' advisory 146
220	220	committees' duties and membership; providing for 147
221	221	election and terms; repealing s. 629.271, F.S., 148
222	222	relating to distribution of savings; amending s. 149
223	223	629.291, F.S.; providing that forms filed with the 150
224	224
225	225	HB 1429 2025
226	226
227	227
228	228
229	229	CODING: Words stricken are deletions; words underlined are additions.
230	230	hb1429-00
231	231	Page 7 of 168
232	232	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
233	233
234	234
235	235
236	236	office for plans to merge a reciprocal insurer with 151
237	237	another reciprocal in surer or to convert a reciprocal 152
238	238	insurer to a stock or mutual insurer are adopted by 153
239	239	the commission rather than the office; amending s. 154
240	240	629.301, F.S.; specifying the manner in which impaired 155
241	241	reciprocal insurers are proceeded against if they 156
242	242	cannot make up deficiencies in assets; specifying the 157
243	243	manner in which assessments are levied upon 158
244	244	subscribers if reciprocal insurers are liquidated; 159
245	245	providing that assessments are subject to specified 160
246	246	limits; repealing ss. 629.401 and 629.520, F.S., 161
247	247	relating to insurance exchange and the authority of a 162
248	248	limited reciprocal insurer, respectively; creating s. 163
249	249	629.56, F.S.; requiring reciprocal insurers to 164
250	250	maintain unearned premium reserves at all times; 165
251	251	amending s. 634.401, F.S.; revising provisions 166
252	252	relating to coverage for a ccidental damage under a 167
253	253	service warranty; creating s. 641.2012, F.S.; 168
254	254	providing applicability of service of process 169
255	255	provisions to health maintenance organizations; 170
256	256	amending s. 641.26, F.S.; revising requirements for 171
257	257	filing annual and quarterly reports by health 172
258	258	maintenance organizations; creating s. 641.283, F.S.; 173
259	259	providing applicability of administrative supervision 174
260	260	and hazardous insurer condition provisions to health 175
261	261
262	262	HB 1429 2025
263	263
264	264
265	265
266	266	CODING: Words stricken are deletions; words underlined are additions.
267	267	hb1429-00
268	268	Page 8 of 168
269	269	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
270	270
271	271
272	272
273	273	maintenance organizations; amending s. 651.011, F.S.; 176
274	274	providing and revising definitions ; amending s. 177
275	275	651.018, F.S.; providing duties for the office if 178
276	276	certain conditions exist in continuing care 179
277	277	facilities; amending s. 651.019, F.S.; requiring 180
278	278	continuing care providers to provide to the office 181
279	279	specified information on financing and intended use of 182
280	280	proceeds under certain circumstances; creating s. 183
281	281	651.0212, F.S.; requiring and authorizing the office 184
282	282	to deny or revoke a provider's authority to engage in 185
283	283	certain continuing care activities under certain 186
284	284	circumstances; amending s. 651.0215, F.S.; revising 187
285	285	the timeframe for the office to examine and respond to 188
286	286	consolidated applications for provisional certificates 189
287	287	of authority and certificates of authority for 190
288	288	providers of continuing care; removing provisions 191
289	289	relating to the duties of the office in responding to 192
290	290	such applications; amending s. 651.022, F.S.; revising 193
291	291	requirements for applications for provisional 194
292	292	certificates of authority of providers of continuing 195
293	293	care; removing provisions relating to duties of the 196
294	294	office in responding to such applica tions; amending s. 197
295	295	651.023, F.S.; conforming cross -references and 198
296	296	provisions to changes made by the act; amending s. 199
297	297	651.024, F.S.; providing applicability of certain 200
298	298
299	299	HB 1429 2025
300	300
301	301
302	302
303	303	CODING: Words stricken are deletions; words underlined are additions.
304	304	hb1429-00
305	305	Page 9 of 168
306	306	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
307	307
308	308
309	309
310	310	specialty insurer provisions and nonapplicability of 201
311	311	certain continuing care provider req uirements to 202
312	312	bondholders under certain circumstances; defining the 203
313	313	term "consent rights"; providing applicability of such 204
314	314	provisions to certain entities under certain 205
315	315	circumstances; amending s. 651.0246, F.S.; revising 206
316	316	requirements for applications for exp ansion of 207
317	317	certificated continuing care facilities; removing 208
318	318	specified duties of the office in responding to such 209
319	319	applications; revising the timeframe for the office to 210
320	320	review such applications; amending s. 651.026, F.S.; 211
321	321	revising requirements for annual re ports filed by 212
322	322	providers of continuing care; providing requirements 213
323	323	for quarterly reports; amending s. 651.0261, F.S.; 214
324	324	providing additional requirements for quarterly 215
325	325	reports filed by continuing care facilities; amending 216
326	326	s. 651.033, F.S.; requiring office approval before 217
327	327	execution of an agreement for establishing an escrow 218
328	328	account; defining the terms "emergency" and "business 219
329	329	day"; specifying circumstances under which providers 220
330	330	of continuing care may withdraw a specified percentage 221
331	331	of the required minimum l iquid reserve; revising the 222
332	332	timeframe for the office to deny petitions for 223
333	333	emergency withdrawals; providing duties of escrow 224
334	334	agents; amending s. 651.034, F.S.; revising duties of 225
335	335
336	336	HB 1429 2025
337	337
338	338
339	339
340	340	CODING: Words stricken are deletions; words underlined are additions.
341	341	hb1429-00
342	342	Page 10 of 168
343	343	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
344	344
345	345
346	346
347	347	the office relating to impaired continuing care 226
348	348	providers; amending s. 651.03 5, F.S.; providing 227
349	349	requirements for continuing care providers' minimum 228
350	350	liquid reserve accounts in escrow; providing 229
351	351	requirements for debt service reserve transfers from 230
352	352	one financial institution or lender to another; 231
353	353	revising and providing requirements for continuing 232
354	354	care providers' operating reserves in escrow; amending 233
355	355	s. 651.043, F.S.; revising circumstances under which 234
356	356	certain notices of management changes must be provided 235
357	357	to the office; amending s. 651.055, F.S.; conforming 236
358	358	cross-references; amending s . 651.071, F.S.; providing 237
359	359	that continuing care and continuing care at -home 238
360	360	contracts are not subordinate to any secured claims 239
361	361	and must be treated with higher priority over all 240
362	362	other claims in the event of receivership or 241
363	363	liquidation proceedings against a provider; providing 242
364	364	an exception; amending s. 651.085, F.S.; requiring 243
365	365	designated resident representatives in continuing care 244
366	366	facilities to perform their duties in good faith; 245
367	367	requiring each continuing care facility to have its 246
368	368	own designated resident rep resentative; specifying the 247
369	369	methods for notifications to designated resident 248
370	370	representatives of certain meetings; creating s. 249
371	371	651.087, F.S; providing requirements for certain 250
372	372
373	373	HB 1429 2025
374	374
375	375
376	376
377	377	CODING: Words stricken are deletions; words underlined are additions.
378	378	hb1429-00
379	379	Page 11 of 168
380	380	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
381	381
382	382
383	383
384	384	collection and distribution of funds by residents of 251
385	385	continuing care facilities; providing duties of 252
386	386	providers relating to such funds; providing 253
387	387	requirements for providers who borrow or solicit funds 254
388	388	from residents; providing that failure to comply with 255
389	389	specified collection and distribution provisions is a 256
390	390	violation of minimum liquid r eserve requirements; 257
391	391	authorizing the commission to require certain 258
392	392	statements or filing to be submitted by electronic 259
393	393	means; amending s. 651.091, F.S.; requiring continuing 260
394	394	care facilities to post notices of bankruptcy 261
395	395	proceedings; providing requirements f or such notices; 262
396	396	requiring continuing care facilities to maintain 263
397	397	certain records; requiring providers of continuing 264
398	398	care to make certain records available for review and 265
399	399	to deliver copies of specified disclosure statements; 266
400	400	providing liability and penalti es; providing 267
401	401	applicability; prohibiting persons from filing or 268
402	402	maintaining actions under certain circumstances; 269
403	403	creating s. 651.104, F.S.; prohibiting persons from 270
404	404	acting or holding themselves out as management 271
405	405	companies for continuing care retirement com munities 272
406	406	without a certificate of authority; providing 273
407	407	requirements for certificate of authority 274
408	408	applications; prohibiting the office from issuing 275
409	409
410	410	HB 1429 2025
411	411
412	412
413	413
414	414	CODING: Words stricken are deletions; words underlined are additions.
415	415	hb1429-00
416	416	Page 12 of 168
417	417	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
418	418
419	419
420	420
421	421	certificates of authority under certain circumstances; 276
422	422	creating s. 651.1041, F.S.; providing applicability of 277
423	423	specified insurer provisions to acquisitions of 278
424	424	management companies; creating s. 651.1043, F.S.; 279
425	425	providing requirements for management company annual 280
426	426	and quarterly financial statements; requiring 281
427	427	acquisition application filings under certain 282
428	428	circumstances; requiring monthly statement filings 283
429	429	under certain circumstances; providing fines for 284
430	430	noncompliance; providing rulemaking authority; 285
431	431	creating s. 651.1045, F.S.; providing grounds for the 286
432	432	office to refuse, suspend, and revoke management 287
433	433	company certificates of authority; providing that 288
434	434	revocation of a management company's certificate of 289
435	435	authority does not relieve a provider from specified 290
436	436	obligations to residents and from annual statement 291
437	437	filings and license fees; authorizing the office to 292
438	438	seek enforcement actions; amending s. 651.105, F.S.; 293
439	439	authorizing the office to examine the businesses of 294
440	440	management companies and their parents, subsidiaries, 295
441	441	and affiliates under certain circumstances; requiring 296
442	442	the office to notify management companies of 297
443	443	compliance deficiencies and to require corrective 298
444	444	actions or plans; requiring management companies to 299
445	445	respond to such notices; amending s. 651.1065, F.S.; 300
446	446
447	447	HB 1429 2025
448	448
449	449
450	450
451	451	CODING: Words stricken are deletions; words underlined are additions.
452	452	hb1429-00
453	453	Page 13 of 168
454	454	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
455	455
456	456
457	457
458	458	prohibiting management companies from engaging in 301
459	459	certain acts if delinquency proceedings have been or 302
460	460	are to be initiated; providing penalties; creating s. 303
461	461	651.1068, F.S.; prohibiting officers and directors of 304
462	462	insolvent providers or management companies from 305
463	463	serving as officers and directors of providers and 306
464	464	management companies and from having control over the 307
465	465	selection of officers and directors under certain 308
466	466	circumstances; amending s. 651.107, F.S.; requiring 309
467	467	management companies to file annual statements and pay 310
468	468	license fees during periods of certificate of 311
469	469	authority suspension; providing for automatic 312
470	470	reinstatement or revocation of certificates of 313
471	471	authority; amending s. 651.108, F.S.; providing 314
472	472	administrative fines for management companies for 315
473	473	certain violations; creating s. 651.113, F.S.; 316
474	474	defining the term "negative fund balance"; providing 317
475	475	guidelines for the commi ssioner to determine whether a 318
476	476	provider or facility is insolvent or in imminent 319
477	477	danger of becoming insolvent; requiring providers and 320
478	478	facilities determined to be insolvent or in danger of 321
479	479	insolvency to prepare a plan; authorizing the office 322
480	480	to issue an order requiring a provider or facility to 323
481	481	engage in certain acts under certain circumstances; 324
482	482	authorizing the office to issue immediate final orders 325
483	483
484	484	HB 1429 2025
485	485
486	486
487	487
488	488	CODING: Words stricken are deletions; words underlined are additions.
489	489	hb1429-00
490	490	Page 14 of 168
491	491	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
492	492
493	493
494	494
495	495	requiring certain acts; providing construction; 326
496	496	amending s. 651.114, F.S.; removing provisions 327
497	497	relating to continuing care facility trustees and 328
498	498	lenders; creating s. 651.1165, F.S.; requiring the 329
499	499	office to record notices of lien against continuing 330
500	500	care facilities' properties; providing requirements 331
501	501	for such liens; providing for lien foreclosures in 332
502	502	civil actions; providing that such liens are preferred 333
503	503	to all liens, mortgages, and other encumbrances upon 334
504	504	the property and all unrecorded liens, mortgages, and 335
505	505	other encumbrances; providing conditions for lien 336
506	506	releases; amending ss. 627.642, 627.6475, 627.657, and 337
507	507	627.66997, F.S.; conforming cross -references; 338
508	508	providing applicability dates; providing effective 339
509	509	dates. 340
510	510	341
511	511	Be It Enacted by the Legislature of the State of Florida: 342
512	512	343
513	513	Section 1. Subsection (3) of section 48.151, Florida 344
514	514	Statutes, is amended to read: 345
515	515	48.151 Service on statutory agents for certain persons. — 346
516	516	(3) The Chief Financial Officer is the agent for service 347
517	517	of process on all insurers applying for authority to transact 348
518	518	insurance in this state, all licensed nonresident insurance 349
519	519	agents, all nonreside nt disability insurance agents licensed 350
520	520
521	521	HB 1429 2025
522	522
523	523
524	524
525	525	CODING: Words stricken are deletions; words underlined are additions.
526	526	hb1429-00
527	527	Page 15 of 168
528	528	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
529	529
530	530
531	531
532	532	pursuant to s. 626.835, any unauthorized insurer under s. 351
533	533	626.906 or s. 626.937, domestic reciprocal insurers, fraternal 352
534	534	benefit societies under chapter 632, warranty associations under 353
535	535	chapter 634, prepaid limited h ealth service organizations under 354
536	536	chapter 636, health maintenance organizations under chapter 641, 355
537	537	and persons required to file statements under s. 628.461. The 356
538	538	Department of Financial Services shall create a secure online 357
539	539	portal as the sole means to accep t service of process on the 358
540	540	Chief Financial Officer under this section. 359
541	541	Section 2. Subsection (3) of section 252.63, Florida 360
542	542	Statutes, is amended to read: 361
543	543	252.63 Commissioner of Insurance Regulation; powers in a 362
544	544	state of emergency.— 363
545	545	(3) The commissioner shall publish in the next available 364
546	546	publication of the Florida Administrative Register a notice 365
547	547	identifying the date the emergency order was issued and shall 366
548	548	include a hyperlink or website address providing direct access 367
549	549	to the emergency order copy of the text of any order issued 368
550	550	under this section, together with a statement describing the 369
551	551	modification or suspension and explaining how the modification 370
552	552	or suspension will facilitate recovery from the emergency . 371
553	553	Section 3. Paragraph (g) of subsection (1) of section 372
554	554	624.4085, Florida Statutes, is amended to read: 373
555	555	624.4085 Risk-based capital requirements for insurers. — 374
556	556	(1) As used in this section, the term: 375
557	557
558	558	HB 1429 2025
559	559
560	560
561	561
562	562	CODING: Words stricken are deletions; words underlined are additions.
563	563	hb1429-00
564	564	Page 16 of 168
565	565	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
566	566
567	567
568	568
569	569	(g) "Life and health insurer" means an insurer authorized 376
570	570	or eligible under the Florida Ins urance Code to underwrite life 377
571	571	or health insurance. The term includes a property and casualty 378
572	572	insurer that writes accident and health insurance only. 379
573	573	Effective January 1, 2015, The term also includes a health 380
574	574	maintenance organization that is authorized in this state and 381
575	575	one or more other states, jurisdictions, or countries and a 382
576	576	prepaid limited health service organization that is authorized 383
577	577	in this state and one or more other states, jurisdictions, or 384
578	578	countries. 385
579	579	Section 4. Subsection (3) of section 624. 422, Florida 386
580	580	Statutes, is renumbered as subsection (4), and a new subsection 387
581	581	(3) is added to that section to read: 388
582	582	624.422 Service of process; appointment of Chief Financial 389
583	583	Officer as process agent. — 390
584	584	(3) The appointment of the Chief Financial Officer under 391
585	585	this section applies to any insurer that withdraws from or 392
586	586	ceases operations in this state until the insurer has completed 393
587	587	its runoff of, or otherwise extinguished, all liabilities in 394
588	588	Florida. 395
589	589	Section 5. Subsection (2) of section 624.45, Florida 396
590	590	Statutes, is amended to read: 397
591	591	624.45 Participation of financial institutions in 398
592	592	reinsurance and in insurance exchanges. —Subject to applicable 399
593	593	laws relating to financial institutions and to any other 400
594	594
595	595	HB 1429 2025
596	596
597	597
598	598
599	599	CODING: Words stricken are deletions; words underlined are additions.
600	600	hb1429-00
601	601	Page 17 of 168
602	602	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
603	603
604	604
605	605
606	606	applicable provision of the Florida Insurance Code, any 401
607	607	financial institution or aggregation of such institutions may: 402
608	608	(2) Participate, directly or indirectly, as an 403
609	609	underwriting member or as an investor in an underwriting member 404
610	610	of any insurance exchange authorized in accordance with s. 405
611	611	629.401, which underwriting member transacts only aggregate or 406
612	612	specific excess insurance over underlying self -insurance 407
613	613	coverage for self-insurance organizations authorized under the 408
614	614	Florida Insurance Code, for multiple -employer welfare 409
615	615	arrangements, or for workers' compensat ion self-insurance 410
616	616	trusts, in addition to any reinsurance the underwriting member 411
617	617	may transact. 412
618	618	413
619	619	Nothing in this section shall be deemed to prohibit a financial 414
620	620	institution from engaging in any presently authorized insurance 415
621	621	activity. 416
622	622	Section 6. Subsection (15) of section 624.610, Florida 417
623	623	Statutes, is renumbered as subsection (16), paragraph (b) of 418
624	624	subsection (3), paragraph (b) of subsection (12), and present 419
625	625	subsection (16) are amended, and a new subsection (15) is added 420
626	626	to that section, to read: 421
627	627	624.610 Reinsurance.— 422
628	628	(3) 423
629	629	(b)1. Credit must be allowed when the reinsurance is ceded 424
630	630	to an assuming insurer that is accredited as a reinsurer in this 425
631	631
632	632	HB 1429 2025
633	633
634	634
635	635
636	636	CODING: Words stricken are deletions; words underlined are additions.
637	637	hb1429-00
638	638	Page 18 of 168
639	639	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
640	640
641	641
642	642
643	643	state. An accredited reinsurer is one that: 426
644	644	a. Files with the office evidence of its submission to 427
645	645	this state's jurisdiction; 428
646	646	b. Submits to this state's authority to examine its books 429
647	647	and records; 430
648	648	c. Is licensed or authorized to transact insurance or 431
649	649	reinsurance in at least one state or, in the case of a United 432
650	650	States branch of an alien assuming insurer, is entered through, 433
651	651	licensed, or authorized to transact insurance or reinsurance in 434
652	652	at least one state; 435
653	653	d. Files annually with the office a copy of its annual 436
654	654	statement filed with the insurance department of its state of 437
655	655	domicile any quarterly statement s if required by its state of 438
656	656	domicile or such quarterly statements if specifically requested 439
657	657	by the office, and a copy of its most recent audited financial 440
658	658	statement; and 441
659	659	(I) Maintains a surplus as regards policyholders in an 442
660	660	amount not less than $20 mi llion and whose accreditation has not 443
661	661	been denied by the office within 90 days after its submission; 444
662	662	or 445
663	663	(II) Maintains a surplus as regards policyholders in an 446
664	664	amount not less than $20 million and whose accreditation has 447
665	665	been approved by the office. 448
666	666	2. The office may deny or revoke an assuming insurer's 449
667	667	accreditation if the assuming insurer does not submit the 450
668	668
669	669	HB 1429 2025
670	670
671	671
672	672
673	673	CODING: Words stricken are deletions; words underlined are additions.
674	674	hb1429-00
675	675	Page 19 of 168
676	676	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
677	677
678	678
679	679
680	680	required documentation pursuant to subparagraph 1., if the 451
681	681	assuming insurer fails to meet all of the standards required of 452
682	682	an accredited reinsure r, or if the assuming insurer's 453
683	683	accreditation would be hazardous to the policyholders of this 454
684	684	state. In determining whether to deny or revoke accreditation, 455
685	685	the office may consider the qualifications of the assuming 456
686	686	insurer with respect to all the followin g subjects: 457
687	687	a. Its financial stability; 458
688	688	b. The lawfulness and quality of its investments; 459
689	689	c. The competency, character, and integrity of its 460
690	690	management; 461
691	691	d. The competency, character, and integrity of persons who 462
692	692	own or have a controlling interest i n the assuming insurer; and 463
693	693	e. Whether claims under its contracts are promptly and 464
694	694	fairly adjusted and are promptly and fairly paid in accordance 465
695	695	with the law and the terms of the contracts. 466
696	696	3. Credit must not be allowed a ceding insurer if the 467
697	697	assuming insurer's accreditation has been revoked by the office 468
698	698	after notice and the opportunity for a hearing. 469
699	699	4. The actual costs and expenses incurred by the office to 470
700	700	review a reinsurer's request for accreditation and subsequent 471
701	701	reviews must be charged to a nd collected from the requesting 472
702	702	reinsurer. If the reinsurer fails to pay the actual costs and 473
703	703	expenses promptly when due, the office may refuse to accredit 474
704	704	the reinsurer or may revoke the reinsurer's accreditation. 475
705	705
706	706	HB 1429 2025
707	707
708	708
709	709
710	710	CODING: Words stricken are deletions; words underlined are additions.
711	711	hb1429-00
712	712	Page 20 of 168
713	713	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
714	714
715	715
716	716
717	717	(12) 476
718	718	(b) The summary statement must b e signed and attested to 477
719	719	by either the chief executive officer or the chief financial 478
720	720	officer of the reporting insurer. In addition to the summary 479
721	721	statement, the office may require the filing of any supporting 480
722	722	information relating to the ceding of such ris ks as it deems 481
723	723	necessary. If the summary statement prepared by the ceding 482
724	724	insurer discloses that the net effect of a reinsurance treaty or 483
725	725	treaties (or series of treaties with one or more affiliated 484
726	726	reinsurers entered into for the purpose of avoiding the 485
727	727	following threshold amount) at any time results in an increase 486
728	728	of more than 25 percent to the insurer's surplus as to 487
729	729	policyholders, then the insurer shall certify in writing to the 488
730	730	office that the relevant reinsurance treaty or treaties comply 489
731	731	with the accounting requirements contained in any rule adopted 490
732	732	by the commission under subsection (16) (15). If such 491
733	733	certificate is filed after the summary statement of such 492
734	734	reinsurance treaty or treaties, the insurer shall refile the 493
735	735	summary statement with the certif icate. In any event, the 494
736	736	certificate must state that a copy of the certificate was sent 495
737	737	to the reinsurer under the reinsurance treaty. 496
738	738	(15) Any application filed with the office to review a 497
739	739	reinsurer's request to operate in this state under this section 498
740	740	must be accompanied by a filing fee equal to the application fee 499
741	741	charged under s. 624.501(1)(a). 500
742	742
743	743	HB 1429 2025
744	744
745	745
746	746
747	747	CODING: Words stricken are deletions; words underlined are additions.
748	748	hb1429-00
749	749	Page 21 of 168
750	750	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
751	751
752	752
753	753
754	754	(16) This act shall apply to all cessions on or after 501
755	755	January 1, 2001, under reinsurance agreements that have an 502
756	756	inception, anniversary, or renewal date on o r after January 1, 503
757	757	2001. 504
758	758	Section 7. Section 626.9651, Florida Statutes, is amended 505
759	759	to read: 506
760	760	626.9651 Security of consumer data Privacy.— 507
761	761	(1) The department and commission shall must each adopt 508
762	762	rules consistent with other provisions of the Florida Insurance 509
763	763	Code to govern the use of a consumer's nonpublic personal 510
764	764	financial and health information. These rules must be based on, 511
765	765	consistent with, and not more restrictive than the Privacy of 512
766	766	Consumer Financial and Health Information Regulation, adopted 513
767	767	September 26, 2000, by the National Association of Insurance 514
768	768	Commissioners; however, the rules must permit the use and 515
769	769	disclosure of nonpublic personal health information for 516
770	770	scientific, medical, or public policy research, in accordance 517
771	771	with federal law. In addition, these rules must be consistent 518
772	772	with, and not more restrictive than, the standards contained in 519
773	773	Title V of the Gramm -Leach-Bliley Act of 1999, Pub. L. No. 106 -520
774	774	102, as amended in T itle LXXV of the Fixing America's Surface 521
775	775	Transportation (FAST) Act, Pub. L. No. 114 -94. If the office 522
776	776	determines that a health insurer or health maintenance 523
777	777	organization is in compliance with, or is actively undertaking 524
778	778	compliance with, the consumer priva cy protection rules adopted 525
779	779
780	780	HB 1429 2025
781	781
782	782
783	783
784	784	CODING: Words stricken are deletions; words underlined are additions.
785	785	hb1429-00
786	786	Page 22 of 168
787	787	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
788	788
789	789
790	790
791	791	by the United States Department of Health and Human Services, in 526
792	792	conformance with the Health Insurance Portability and 527
793	793	Affordability Act, that health insurer or health maintenance 528
794	794	organization is in compliance with this subsection section. 529
795	795	(2) The office and the commission shall adopt rules 530
796	796	consistent with state law, including the Florida Insurance Code, 531
797	797	to ensure the cybersecurity of a consumer's nonpublic insurance 532
798	798	data. These rules may not be more restrictive than the Nation al 533
799	799	Association of Insurance Commissioners Insurance Data Security 534
800	800	Model Law, adopted as of October 2017, and subsequent amendments 535
801	801	thereto if the methodology remains substantially consistent. The 536
802	802	rules must: 537
803	803	(a) Apply to all entities acting as insurers, transacting 538
804	804	insurance, or otherwise engaging in insurance activities in this 539
805	805	state, including entities licensed under chapter 641, and any 540
806	806	entity that has been contracted to maintain, store, or process 541
807	807	personal information on behalf of a covered entity; 542
808	808	(b) Require the development and implementation of an 543
809	809	information security program as defined in the model law; 544
810	810	(c) Require investigation and notification of a 545
811	811	cybersecurity event as required under the model law; 546
812	812	(d) Require that each insurer submit to the department or 547
813	813	office all or part of the information required to be reported to 548
814	814	the department or office in a computer -readable form compatible 549
815	815	with the electronic data processing system of the department or 550
816	816
817	817	HB 1429 2025
818	818
819	819
820	820
821	821	CODING: Words stricken are deletions; words underlined are additions.
822	822	hb1429-00
823	823	Page 23 of 168
824	824	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
825	825
826	826
827	827
828	828	office; and 551
829	829	(e) Require that the office be copied on any notice 552
830	830	provided to the Attorney General under s. 501.171. 553
831	831	(3) Upon receiving information under this section, the 554
832	832	office shall review the information and may initiate an 555
833	833	examination or investigation under s. 624.316, s. 624.3161, or 556
834	834	s. 626.8828. 557
835	835	Section 8. Paragraph (a) of subsection (2) of section 558
836	836	627.062, Florida Statutes, is amended to read: 559
837	837	627.062 Rate standards. — 560
838	838	(2) As to all such classes of insurance: 561
839	839	(a) Insurers or rating organizations shall establish and 562
840	840	use rates, rating schedules, or rating manuals that allow the 563
841	841	insurer a reasonable rate of return on the classes of insurance 564
842	842	written in this state. A copy of rates, rating schedules, rating 565
843	843	manuals, premium credits or discount schedules, and surcharge 566
844	844	schedules, and chang es thereto, must be filed with the office 567
845	845	under one of the following procedures: 568
846	846	1. If the filing is made at least 90 days before the 569
847	847	proposed effective date and is not implemented during the 570
848	848	office's review of the filing and any proceeding and judicial 571
849	849	review, such filing is considered a "file and use" filing. In 572
850	850	such case, the office shall finalize its review by issuance of a 573
851	851	notice of intent to approve or a notice of intent to disapprove 574
852	852	within 90 days after receipt of the filing. If the 90 -day period 575
853	853
854	854	HB 1429 2025
855	855
856	856
857	857
858	858	CODING: Words stricken are deletions; words underlined are additions.
859	859	hb1429-00
860	860	Page 24 of 168
861	861	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
862	862
863	863
864	864
865	865	ends on a weekend or a holiday under s. 110.117(1)(a) -(i), it 576
866	866	must be extended until the conclusion of the next business day. 577
867	867	The notice of intent to approve and the notice of intent to 578
868	868	disapprove constitute agency action for purposes of the 579
869	869	Administrative Procedure Act. Requests for supporting 580
870	870	information, requests for mathematical or mechanical 581
871	871	corrections, or notification to the insurer by the office of its 582
872	872	preliminary findings does not toll the 90 -day period during any 583
873	873	such proceedings and subsequent ju dicial review. The rate shall 584
874	874	be deemed approved if the office does not issue a notice of 585
875	875	intent to approve or a notice of intent to disapprove within 90 586
876	876	days after receipt of the filing. 587
877	877	2. If the filing is not made in accordance with 588
878	878	subparagraph 1., such filing must be made as soon as 589
879	879	practicable, but within 30 days after the effective date, and is 590
880	880	considered a "use and file" filing. An insurer making a "use and 591
881	881	file" filing is potentially subject to an order by the office to 592
882	882	return to policyholders th ose portions of rates found to be 593
883	883	excessive, as provided in paragraph (h). For purposes of this 594
884	884	subparagraph, a personal residential property insurer may not 595
885	885	submit more than one "use and file" filing affecting 596
886	886	policyholders within a single policy period, unless the filing 597
887	887	is exclusively related to reinsurance. 598
888	888	3. For all property insurance filings made or submitted 599
889	889	after January 25, 2007, but before May 1, 2012, an insurer 600
890	890
891	891	HB 1429 2025
892	892
893	893
894	894
895	895	CODING: Words stricken are deletions; words underlined are additions.
896	896	hb1429-00
897	897	Page 25 of 168
898	898	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
899	899
900	900
901	901
902	902	seeking a rate that is greater than the rate most recently 601
903	903	approved by the office shall make a "file and use" filing. For 602
904	904	purposes of this subparagraph, motor vehicle collision and 603
905	905	comprehensive coverages are not considered property coverages. 604
906	906	605
907	907	The provisions of this subsection do not apply to workers' 606
908	908	compensation, employer's liability insurance, and motor vehicle 607
909	909	insurance. 608
910	910	Section 9. Subsection (2) of section 627.0621, Florida 609
911	911	Statutes, is renumbered as subsection (3), present subsection 610
912	912	(2) is amended, and a new subsection (2) is added to that 611
913	913	section, to read: 612
914	914	627.0621 Transparency in rate regulation. — 613
915	915	(2) RATE TRANSPARENCY REPORT. — 614
916	916	(a) Beginning October 1, 2025, every rate filing 615
917	917	requesting a rate change for residential property coverage from 616
918	918	a property insurer must include a rate transparency report for 617
919	919	acceptance for use or modification by the office. The office may 618
920	920	accept the rate transparency report for filing, or if the office 619
921	921	finds that the report fails to provide the required information 620
922	922	in concise and plain language which aids consumers in their 621
923	923	understanding of ins urance, or finds the report to be 622
924	924	misleading, the office shall return the rate transparency report 623
925	925	to the property insurer for modification. The office's 624
926	926	acceptance for use or modification of the report may not be 625
927	927
928	928	HB 1429 2025
929	929
930	930
931	931
932	932	CODING: Words stricken are deletions; words underlined are additions.
933	933	hb1429-00
934	934	Page 26 of 168
935	935	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
936	936
937	937
938	938
939	939	deemed approval pursuant to s. 627.062. Th e report shall be 626
940	940	compiled in a uniform format prescribed by the commission and 627
941	941	must include a graphical representation identifying a percentage 628
942	942	breakdown of rating factors anticipated of the company, book, or 629
943	943	program affected by the filing. 630
944	944	(b) Along with an offer of coverage and upon renewal, an 631
945	945	insurer must provide the corresponding copy of the rate 632
946	946	transparency report for the consumer's offered rate to aid 633
947	947	consumers in their understanding of insurance. If the report has 634
948	948	not been accepted for use or mo dified by the office, the report 635
949	949	must indicate that it is preliminary and subject to modification 636
950	950	by the office. 637
951	951	(c) The rate transparency report must include the 638
952	952	following categories of the book or program at the cumulative 639
953	953	level: 640
954	954	1. The percentage of the total rate factor associated with 641
955	955	the cost of reinsurance. 642
956	956	2. The percentage of the total rate factor associated with 643
957	957	the cost of claims. 644
958	958	3. The percentage of the total rate factor associated with 645
959	959	the defense containment and costs. 646
960	960	4. The percentage of the total rate factor associated with 647
961	961	fees and commissions. 648
962	962	5. The percentage of the rate factor associated with 649
963	963	profit and contingency of the insurer. 650
964	964
965	965	HB 1429 2025
966	966
967	967
968	968
969	969	CODING: Words stricken are deletions; words underlined are additions.
970	970	hb1429-00
971	971	Page 27 of 168
972	972	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
973	973
974	974
975	975
976	976	6. Any other categories deemed necessary by the office or 651
977	977	commission. 652
978	978	653
979	979	An estimated percentage of the influence of each listed factor 654
980	980	must be provided to equal 100 percent. 655
981	981	(d) The insurer shall provide the rate transparency report 656
982	982	to the office upon the filing of a rate change with the office. 657
983	983	(e) The rate transparency report must a lso include the 658
984	984	following information: 659
985	985	1. Any major adverse findings by the office for the 660
986	986	previous 3 calendar years. 661
987	987	2. Whether the insurer uses affiliated entities to perform 662
988	988	functions of the insurer. 663
989	989	3. Contact information, to include a telephone number, 664
990	990	hours of service, and e -mail address for the Division of 665
991	991	Consumer Services of the department. 666
992	992	4. Contact information for the office. 667
993	993	5. Address for the website for public access to rate 668
994	994	filing and affiliate information outlined in subsection (3 ). 669
995	995	6. Any changes in the total insured value from the last 670
996	996	policy period. 671
997	997	(f) The office shall define, in concise and plain 672
998	998	language, any terms used with the rate transparency report to 673
999	999	aid consumers in their understanding of insurance. 674
1000	1000	(3)(2) WEBSITE FOR PUBLIC ACCESS TO RATE FILING 675
1001	1001
1002	1002	HB 1429 2025
1003	1003
1004	1004
1005	1005
1006	1006	CODING: Words stricken are deletions; words underlined are additions.
1007	1007	hb1429-00
1008	1008	Page 28 of 168
1009	1009	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
1010	1010
1011	1011
1012	1012
1013	1013	INFORMATION.— 676
1014	1014	(a) The office shall establish and maintain a 677
1015	1015	comprehensive resource center on its website that uses concise 678
1016	1016	and plain language to aid consumers in their understanding of 679
1017	1017	insurance. The website must inclu de substantive information on 680
1018	1018	the current and historical dynamics of the market, data 681
1019	1019	concerning the financial condition and market conduct of 682
1020	1020	insurance companies available to consumers, and choices 683
1021	1021	available to consumers. At a minimum, the website must co ntain 684
1022	1022	the following: 685
1023	1023	1. Reports, using graphical information wherever possible, 686
1024	1024	which outline information about the state of the market and 687
1025	1025	adverse and positive trends affecting it. 688
1026	1026	2. Tools that aid consumers in finding insurers. 689
1027	1027	3. Tools that aid c onsumers in selecting the coverages 690
1028	1028	beneficial to them. 691
1029	1029	4. Information about mitigation credits and the My Safe 692
1030	1030	Florida Home Program, as well as other credits insurers may 693
1031	1031	offer beyond wind mitigation. 694
1032	1032	5. Access to the rate transparency report, annual 695
1033	1033	statements, market conduct information, and other information 696
1034	1034	related to each insurer. 697
1035	1035	6. Information on the Citizens Property Insurance 698
1036	1036	Corporation takeout process, the clearinghouse, and general 699
1037	1037	information as reported by the office. 700
1038	1038
1039	1039	HB 1429 2025
1040	1040
1041	1041
1042	1042
1043	1043	CODING: Words stricken are deletions; words underlined are additions.
1044	1044	hb1429-00
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1046	1046	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
1047	1047
1048	1048
1049	1049
1050	1050	7.(a) With respect to any residential property rate 701
1051	1051	filing, the office shall provide the following information on a 702
1052	1052	publicly accessible Internet website : 703
1053	1053	a.1. The overall rate change requested by the insurer. 704
1054	1054	b.2. The rate change approved by the office along with all 705
1055	1055	of the actuary's assumptions and recommendations forming the 706
1056	1056	basis of the office's decision. 707
1057	1057	c.3. Certification by the office's actuary that, based on 708
1058	1058	the actuary's knowledge, his or her recommendations are 709
1059	1059	consistent with accepted actuarial principles. 710
1060	1060	d. Whether the insurer uses affiliated entities to perform 711
1061	1061	administrative, claims handling, or other functions of the 712
1062	1062	insurer and, if so, the total percentage of direct written 713
1063	1063	premium paid to the affiliated entities by the insurer in the 714
1064	1064	preceding annual calendar year. 715
1065	1065	(b) For any rate filing, regardless of whether or not the 716
1066	1066	filing is subject to a public hearing, the office shall provide 717
1067	1067	on its website a means for any policyholder who may be affected 718
1068	1068	by a proposed rate change to send an e -mail regarding the 719
1069	1069	proposed rate change. Such e -mail must be accessible to the 720
1070	1070	actuary assigned to review the rate filing. 721
1071	1071	(c) The statewide average requested rate change and final 722
1072	1072	approved statewide average rate change within a filing is not a 723
1073	1073	trade secret as defined in s. 688.002 or s. 812.081(1) and is 724
1074	1074	not subject to the public recor ds exemption for trade secrets 725
1075	1075
1076	1076	HB 1429 2025
1077	1077
1078	1078
1079	1079
1080	1080	CODING: Words stricken are deletions; words underlined are additions.
1081	1081	hb1429-00
1082	1082	Page 30 of 168
1083	1083	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
1084	1084
1085	1085
1086	1086
1087	1087	provided in s. 119.0715 or s. 624.4213. 726
1088	1088	(d) County rating examples submitted to the office through 727
1089	1089	the rate collection system for the purposes of displaying rates 728
1090	1090	on the office website are not a trade secret as defined in s . 729
1091	1091	688.002 or s. 812.081(1) and are not subject to the public 730
1092	1092	records exemption for trade secrets provided in s. 119.0715 or 731
1093	1093	s. 624.4213. 732
1094	1094	Section 10. Paragraph (b) of subsection (3) of section 733
1095	1095	627.0645, Florida Statutes, is amended to read: 734
1096	1096	627.0645 Annual filings.— 735
1097	1097	(3) The filing requirements of this section shall be 736
1098	1098	satisfied by one of the following methods: 737
1099	1099	(b) If no rate change is proposed, a filing which consists 738
1100	1100	of a certification by an actuary that the existing rate level 739
1101	1101	produces rates which are actuarially sound and which are not 740
1102	1102	inadequate, as defined in s. 627.062. However, a full rate 741
1103	1103	filing is required after 2 consecutive years of certification 742
1104	1104	under this paragraph. 743
1105	1105	Section 11. Paragraph (b) of subsection (1) of section 744
1106	1106	627.0651, Florida Statutes, is amended to read: 745
1107	1107	627.0651 Making and use of rates for motor vehicle 746
1108	1108	insurance.— 747
1109	1109	(1) Insurers shall establish and use rates, rating 748
1110	1110	schedules, or rating manuals to allow the insurer a reasonable 749
1111	1111	rate of return on motor vehicle insura nce written in this state. 750
1112	1112
1113	1113	HB 1429 2025
1114	1114
1115	1115
1116	1116
1117	1117	CODING: Words stricken are deletions; words underlined are additions.
1118	1118	hb1429-00
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1120	1120	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
1121	1121
1122	1122
1123	1123
1124	1124	A copy of rates, rating schedules, and rating manuals, and 751
1125	1125	changes therein, shall be filed with the office under one of the 752
1126	1126	following procedures: 753
1127	1127	(b) If the filing is not made in accordance with the 754
1128	1128	provisions of paragraph (a), such filing shall be made as soon 755
1129	1129	as practicable, but no later than 30 days after the effective 756
1130	1130	date, and shall be considered a "use and file" filing. An 757
1131	1131	insurer making a "use and file" filing is potentially subject to 758
1132	1132	an order by the office to return to policyholders portions of 759
1133	1133	rates found to be excessive, as provided in subsection (11). For 760
1134	1134	purposes of this paragraph, an insurer may not submit more than 761
1135	1135	one "use and file" filing impacting policyholders within a 762
1136	1136	single policy period. 763
1137	1137	Section 12. Effective upon this act becoming a law, 764
1138	1138	paragraph (a) of subsection (5) of section 627.4554, Florida 765
1139	1139	Statutes, is amended to read: 766
1140	1140	627.4554 Suitability in annuity transactions. — 767
1141	1141	(5) DUTIES OF INSURERS AND AGENTS. — 768
1142	1142	(a) An agent, when making a recommendati on of an annuity, 769
1143	1143	shall act in the best interest of the consumer under the 770
1144	1144	circumstances known at the time the recommendation is made, 771
1145	1145	without placing the financial interest of the agent or insurer 772
1146	1146	ahead of the consumer's interest. An agent has acted in th e best 773
1147	1147	interest of the consumer if the agent has satisfied the 774
1148	1148	following obligations regarding care, disclosure, conflict of 775
1149	1149
1150	1150	HB 1429 2025
1151	1151
1152	1152
1153	1153
1154	1154	CODING: Words stricken are deletions; words underlined are additions.
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1157	1157	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
1158	1158
1159	1159
1160	1160
1161	1161	interest, and documentation: 776
1162	1162	1.a. The agent, in making a recommendation, shall exercise 777
1163	1163	reasonable diligence, care, and skill to: 778
1164	1164	(I) Know the financial situation, insurance needs, and 779
1165	1165	financial objectives of the customer. 780
1166	1166	(II) Understand the available options after making a 781
1167	1167	reasonable inquiry into options available to the agent. 782
1168	1168	(III) Have a reasonable basis to believe the re commended 783
1169	1169	option effectively addresses the consumer's financial situation, 784
1170	1170	insurance needs, and financial objectives over the life of the 785
1171	1171	product, as evaluated in light of the consumer profile 786
1172	1172	information. 787
1173	1173	(IV) Communicate the reason or reasons for the 788
1174	1174	recommendation. 789
1175	1175	b. The requirements of sub -subparagraph a. include: 790
1176	1176	(I) Making reasonable efforts to obtain consumer profile 791
1177	1177	information from the consumer before the recommendation of an 792
1178	1178	annuity. 793
1179	1179	(II) Requiring an agent to consider the types of produc ts 794
1180	1180	the agent is authorized and licensed to recommend or sell which 795
1181	1181	address the consumer's financial situation, insurance needs, and 796
1182	1182	financial objectives. This does not require analysis or 797
1183	1183	consideration of any products outside the authority and license 798
1184	1184	of the agent or other possible alternative products or 799
1185	1185	strategies available in the market at the time of the 800
1186	1186
1187	1187	HB 1429 2025
1188	1188
1189	1189
1190	1190
1191	1191	CODING: Words stricken are deletions; words underlined are additions.
1192	1192	hb1429-00
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1194	1194	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
1195	1195
1196	1196
1197	1197
1198	1198	recommendation. Agents shall be held to standards applicable to 801
1199	1199	agents with similar authority and licensure. 802
1200	1200	(III) Having a reasonable basis to belie ve the consumer 803
1201	1201	would benefit from certain features of the annuity, such as 804
1202	1202	annuitization, death or living benefit, or other insurance -805
1203	1203	related features. 806
1204	1204	c. The requirements of this subsection do not create a 807
1205	1205	fiduciary obligation or relationship and only create a 808
1206	1206	regulatory obligation as provided in this section. 809
1207	1207	d. The consumer profile information; characteristics of 810
1208	1208	the insurer; and product costs, rates, benefits, and features 811
1209	1209	are those factors generally relevant in making a determination 812
1210	1210	whether an annuity effectively addresses the consumer's 813
1211	1211	financial situation, insurance needs, and financial objectives, 814
1212	1212	but the level of importance of each factor under the care 815
1213	1213	obligation of this paragraph may vary depending on the facts and 816
1214	1214	circumstances of a particu lar case. However, each factor may not 817
1215	1215	be considered in isolation. 818
1216	1216	e. The requirements under sub -subparagraph a. apply to the 819
1217	1217	particular annuity as a whole and the underlying subaccounts to 820
1218	1218	which funds are allocated at the time of purchase or exchange of 821
1219	1219	an annuity, and riders and similar product enhancements, if any. 822
1220	1220	f. Sub-subparagraph a. does not require that the annuity 823
1221	1221	with the lowest one-time occurrence compensation structure or 824
1222	1222	multiple occurrence compensation structure shall necessarily be 825
1223	1223
1224	1224	HB 1429 2025
1225	1225
1226	1226
1227	1227
1228	1228	CODING: Words stricken are deletions; words underlined are additions.
1229	1229	hb1429-00
1230	1230	Page 34 of 168
1231	1231	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
1232	1232
1233	1233
1234	1234
1235	1235	recommended. 826
1236	1236	g. Sub-subparagraph a. does not require the agent to have 827
1237	1237	ongoing monitoring obligations under the care obligation, 828
1238	1238	although such an obligation may be separately owed under the 829
1239	1239	terms of a fiduciary, consulting, investment, advising, or 830
1240	1240	financial planning agreement between the consumer and the agent. 831
1241	1241	h. In the case of an exchange or replacement of an 832
1242	1242	annuity, the agent shall consider the whole transaction, which 833
1243	1243	includes taking into consideration whether: 834
1244	1244	(I) The consumer will incur a surrender charge; be subject 835
1245	1245	to the commencement of a new surrender period; lose existing 836
1246	1246	benefits, such as death, living, or other contractual benefits; 837
1247	1247	or be subject to increased fees, investment advisory fees, or 838
1248	1248	charges for riders and similar product enhancemen ts. 839
1249	1249	(II) The replacing product would substantially benefit the 840
1250	1250	consumer in comparison to the replaced product over the life of 841
1251	1251	the product. 842
1252	1252	(III) The consumer has had another annuity exchange or 843
1253	1253	replacement and, in particular, an exchange or replacement 844
1254	1254	within the preceding 60 months. 845
1255	1255	i. This section does not require an agent to obtain any 846
1256	1256	license other than an agent license with the appropriate line of 847
1257	1257	authority to sell, solicit, or negotiate insurance in this 848
1258	1258	state, including, but not limi ted to, any securities license, in 849
1259	1259	order to fulfill the duties and obligations contained in this 850
1260	1260
1261	1261	HB 1429 2025
1262	1262
1263	1263
1264	1264
1265	1265	CODING: Words stricken are deletions; words underlined are additions.
1266	1266	hb1429-00
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1268	1268	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
1269	1269
1270	1270
1271	1271
1272	1272	section; provided, the agent does not give advice or provide 851
1273	1273	services that are otherwise subject to securities laws or engage 852
1274	1274	in any other activity requiring o ther professional licenses. 853
1275	1275	2.a. Before the recommendation or sale of an annuity, the 854
1276	1276	agent shall prominently disclose to the consumer, on a form 855
1277	1277	substantially similar to that posted on the department office 856
1278	1278	website as Appendix A, related to an insurance agent disclosure 857
1279	1279	for annuities: 858
1280	1280	(I) A description of the scope and terms of the 859
1281	1281	relationship with the consumer and the role of the agent in the 860
1282	1282	transaction. 861
1283	1283	(II) An affirmative statement on whether the agent is 862
1284	1284	licensed and authorized to sell the foll owing products: 863
1285	1285	(A) Fixed annuities. 864
1286	1286	(B) Fixed indexed annuities. 865
1287	1287	(C) Variable annuities. 866
1288	1288	(D) Life insurance. 867
1289	1289	(E) Mutual funds. 868
1290	1290	(F) Stocks and bonds. 869
1291	1291	(G) Certificates of deposit. 870
1292	1292	(III) An affirmative statement describing the insurers for 871
1293	1293	which the agent is authorized, contracted, or appointed, or 872
1294	1294	otherwise able to sell insurance products, using the following 873
1295	1295	descriptions: 874
1296	1296	(A) From one insurer; 875
1297	1297
1298	1298	HB 1429 2025
1299	1299
1300	1300
1301	1301
1302	1302	CODING: Words stricken are deletions; words underlined are additions.
1303	1303	hb1429-00
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1305	1305	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
1306	1306
1307	1307
1308	1308
1309	1309	(B) From two or more insurers; or 876
1310	1310	(C) From two or more insurers, although primarily 877
1311	1311	contracted with one insurer. 878
1312	1312	(IV) A description of the sources and types of cash 879
1313	1313	compensation and noncash compensation to be received by the 880
1314	1314	agent, including whether the agent is to be compensated for the 881
1315	1315	sale of a recommended annuity by commission as part of pre mium 882
1316	1316	or other remuneration received from the insurer, intermediary, 883
1317	1317	or other agent, or by fee as a result of a contract for advice 884
1318	1318	or consulting services. 885
1319	1319	(V) A notice of the consumer's right to request additional 886
1320	1320	information regarding cash compensation described in sub-887
1321	1321	subparagraph b. 888
1322	1322	b. Upon request of the consumer or the consumer's 889
1323	1323	designated representative, the agent shall disclose: 890
1324	1324	(I) A reasonable estimate of the amount of cash 891
1325	1325	compensation to be received by the agent, which may be stated as 892
1326	1326	a range of amounts or percentages. 893
1327	1327	(II) Whether the cash compensation is a one -time or 894
1328	1328	multiple occurrence amount; and if a multiple occurrence amount, 895
1329	1329	the frequency and amount of the occurrence, which may be stated 896
1330	1330	as a range of amounts or percentages. 897
1331	1331	c. Before or at the time of the recommendation or sale of 898
1332	1332	an annuity, the agent shall have a reasonable basis to believe 899
1333	1333	the consumer has been informed of various features of the 900
1334	1334
1335	1335	HB 1429 2025
1336	1336
1337	1337
1338	1338
1339	1339	CODING: Words stricken are deletions; words underlined are additions.
1340	1340	hb1429-00
1341	1341	Page 37 of 168
1342	1342	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
1343	1343
1344	1344
1345	1345
1346	1346	annuity, such as the potential surrender period and surrender 901
1347	1347	charge; potential tax penalty if the consumer sells, exchanges, 902
1348	1348	surrenders, or annuitizes the annuity; mortality and expense 903
1349	1349	fees; any annual fees; investment advisory fees; potential 904
1350	1350	charges for and features of riders or other options of the 905
1351	1351	annuity; limitations on inter est returns; potential changes in 906
1352	1352	nonguaranteed elements of the annuity; insurance and investment 907
1353	1353	components; and market risk. 908
1354	1354	3. An agent shall identify and avoid or reasonably manage 909
1355	1355	and disclose material conflicts of interest, including material 910
1356	1356	conflicts of interest related to an ownership interest. 911
1357	1357	4. An agent shall at the time of the recommendation or 912
1358	1358	sale: 913
1359	1359	a. Make a written record of any recommendation and the 914
1360	1360	basis for the recommendation, subject to this section. 915
1361	1361	b. Obtain a consumer -signed statement on a form 916
1362	1362	substantially similar to that posted on the department office 917
1363	1363	website as Appendix B, related to a consumer's refusal to 918
1364	1364	provide information, documenting: 919
1365	1365	(I) A customer's refusal to provide the consumer profile 920
1366	1366	information, if any. 921
1367	1367	(II) A customer's understanding of the ramifications of 922
1368	1368	not providing his or her consumer profile information or 923
1369	1369	providing insufficient consumer profile information. 924
1370	1370	c. Obtain a consumer -signed statement on a form 925
1371	1371
1372	1372	HB 1429 2025
1373	1373
1374	1374
1375	1375
1376	1376	CODING: Words stricken are deletions; words underlined are additions.
1377	1377	hb1429-00
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1379	1379	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
1380	1380
1381	1381
1382	1382
1383	1383	substantially similar to that posted on the department office 926
1384	1384	website as Appendix C, related to a consumer's decision to 927
1385	1385	purchase an annuity not based on a recommendation, acknowledging 928
1386	1386	the annuity transaction is not recommended if a customer decides 929
1387	1387	to enter into an annuity transaction that is not based on the 930
1388	1388	agent's recommendation. 931
1389	1389	5. Any requirement applicable to an agent under this 932
1390	1390	subsection applies to every agent who has exercised material 933
1391	1391	control or influence in the making of a recommendation and has 934
1392	1392	received direct compensation as a result of the recommendation 935
1393	1393	or sale, regardless of whether the agent has had any direct 936
1394	1394	contact with the consumer. Activities such as providing or 937
1395	1395	delivering marketing or education materials, product wholesaling 938
1396	1396	or other back office product support, and g eneral supervision of 939
1397	1397	an agent do not, in and of themselves, constitute material 940
1398	1398	control or influence. 941
1399	1399	Section 13. Paragraphs (c) through (o) and (r) through (w) 942
1400	1400	of subsection (3) of section 627.6699, Florida Statutes, are 943
1401	1401	redesignated as paragraphs (b ) through (n) and (o) through (t), 944
1402	1402	respectively, subsections (12) through (17) are renumbered as 945
1403	1403	subsections (11) through (16), respectively, and present 946
1404	1404	paragraphs (b), (p), (q), and (s) of subsection (3), paragraph 947
1405	1405	(d) of subsection (9), paragraphs (b) a nd (c) of subsection 948
1406	1406	(10), and present subsection (11) of that section are amended, 949
1407	1407	to read: 950
1408	1408
1409	1409	HB 1429 2025
1410	1410
1411	1411
1412	1412
1413	1413	CODING: Words stricken are deletions; words underlined are additions.
1414	1414	hb1429-00
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1416	1416	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
1417	1417
1418	1418
1419	1419
1420	1420	627.6699 Employee Health Care Access Act. — 951
1421	1421	(3) DEFINITIONS.—As used in this section, the term: 952
1422	1422	(b) "Board" means the board of directors of the program. 953
1423	1423	(p) "Plan of operation" means the plan of operation of the 954
1424	1424	program, including articles, bylaws, and operating rules, 955
1425	1425	adopted by the board under subsection (11). 956
1426	1426	(q) "Program" means the Florida Small Employer Carrier 957
1427	1427	Reinsurance Program created under subsect ion (11). 958
1428	1428	(p)(s) "Reinsuring carrier" means a small employer carrier 959
1429	1429	that elects to comply with reinsurance the requirements set 960
1430	1430	forth in subsection (11) . 961
1431	1431	(9) SMALL EMPLOYER CARRIER'S ELECTION TO BECOME A RISK -962
1432	1432	ASSUMING CARRIER OR A REINSURING CARRIER. — 963
1433	1433	(d) A small employer carrier that elects to cease 964
1434	1434	participating as a reinsuring carrier and to become a risk -965
1435	1435	assuming carrier is prohibited from reinsuring or continuing to 966
1436	1436	reinsure any small employer health benefits plan under 967
1437	1437	subsection (11) as soon as the carrier becomes a risk -assuming 968
1438	1438	carrier and must pay a prorated assessment based upon business 969
1439	1439	issued as a reinsuring carrier for any portion of the year that 970
1440	1440	the business was reinsured. A small employer carrier that elects 971
1441	1441	to cease participating as a risk-assuming carrier and to become 972
1442	1442	a reinsuring carrier is permitted to reinsure small employer 973
1443	1443	health benefit plans under the terms set forth in subsection 974
1444	1444	(11) and must pay a prorated assessment based upon business 975
1445	1445
1446	1446	HB 1429 2025
1447	1447
1448	1448
1449	1449
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1453	1453	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
1454	1454
1455	1455
1456	1456
1457	1457	issued as a reinsuring carrier for a ny portion of the year that 976
1458	1458	the business was reinsured. 977
1459	1459	(10) ELECTION PROCESS TO BECOME A RISK -ASSUMING CARRIER.— 978
1460	1460	(b) In determining whether to approve an application by a 979
1461	1461	small employer carrier to become a risk -assuming carrier, the 980
1462	1462	office shall consider: 981
1463	1463	1. The carrier's financial ability to support the 982
1464	1464	assumption of the risk of small employer groups. 983
1465	1465	2. The carrier's history of rating and underwriting small 984
1466	1466	employer groups. 985
1467	1467	3. The carrier's commitment to market fairly to all small 986
1468	1468	employers in the state or its service area, as applicable. 987
1469	1469	4. The carrier's ability to assume and manage the risk of 988
1470	1470	enrolling small employer groups without the protection of the 989
1471	1471	reinsurance program provided in subsection (11) . 990
1472	1472	(c) A small employer carrier that bec omes a risk-assuming 991
1473	1473	carrier pursuant to this subsection is not subject to 992
1474	1474	reinsurance the assessment provisions of subsection (11) . 993
1475	1475	(11) SMALL EMPLOYER HEALTH REINSURANCE PROGRAM. — 994
1476	1476	(a) There is created a nonprofit entity to be known as the 995
1477	1477	"Florida Small Employer Health Reinsurance Program." 996
1478	1478	(b)1. The program shall operate subject to the supervision 997
1479	1479	and control of the board. 998
1480	1480	2. Effective upon this act becoming a law, the board shall 999
1481	1481	consist of the director of the office or his or her designee, 1000
1482	1482
1483	1483	HB 1429 2025
1484	1484
1485	1485
1486	1486
1487	1487	CODING: Words stricken are deletions; words underlined are additions.
1488	1488	hb1429-00
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1490	1490	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
1491	1491
1492	1492
1493	1493
1494	1494	who shall serve as the chairperson, and 13 additional members 1001
1495	1495	who are representatives of carriers and insurance agents and are 1002
1496	1496	appointed by the director of the office and serve as follows: 1003
1497	1497	a. Five members shall be representatives of health 1004
1498	1498	insurers licensed under chapter 624 or chapter 641. Two members 1005
1499	1499	shall be agents who are actively engaged in the sale of health 1006
1500	1500	insurance. Four members shall be employers or representatives of 1007
1501	1501	employers. One member shall be a person covered under an 1008
1502	1502	individual health insuran ce policy issued by a licensed insurer 1009
1503	1503	in this state. One member shall represent the Agency for Health 1010
1504	1504	Care Administration and shall be recommended by the Secretary of 1011
1505	1505	Health Care Administration. 1012
1506	1506	b. A member appointed under this subparagraph shall serve 1013
1507	1507	a term of 4 years and shall continue in office until the 1014
1508	1508	member's successor takes office, except that, in order to 1015
1509	1509	provide for staggered terms, the director of the office shall 1016
1510	1510	designate two of the initial appointees under this subparagraph 1017
1511	1511	to serve terms of 2 years and shall designate three of the 1018
1512	1512	initial appointees under this subparagraph to serve terms of 3 1019
1513	1513	years. 1020
1514	1514	3. The director of the office may remove a member for 1021
1515	1515	cause. 1022
1516	1516	4. Vacancies on the board shall be filled in the same 1023
1517	1517	manner as the original appointment for the unexpired portion of 1024
1518	1518	the term. 1025
1519	1519
1520	1520	HB 1429 2025
1521	1521
1522	1522
1523	1523
1524	1524	CODING: Words stricken are deletions; words underlined are additions.
1525	1525	hb1429-00
1526	1526	Page 42 of 168
1527	1527	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
1528	1528
1529	1529
1530	1530
1531	1531	(c)1. The board shall submit to the office a plan of 1026
1532	1532	operation to assure the fair, reasonable, and equitable 1027
1533	1533	administration of the program. The board may at any time submit 1028
1534	1534	to the office any amendments t o the plan that the board finds to 1029
1535	1535	be necessary or suitable. 1030
1536	1536	2. The office shall, after notice and hearing, approve the 1031
1537	1537	plan of operation if it determines that the plan submitted by 1032
1538	1538	the board is suitable to assure the fair, reasonable, and 1033
1539	1539	equitable administration of the program and provides for the 1034
1540	1540	sharing of program gains and losses equitably and 1035
1541	1541	proportionately in accordance with paragraph (j). 1036
1542	1542	3. The plan of operation, or any amendment thereto, 1037
1543	1543	becomes effective upon written approval of the office. 1038
1544	1544	(d) The plan of operation must, among other things: 1039
1545	1545	1. Establish procedures for handling and accounting for 1040
1546	1546	program assets and moneys and for an annual fiscal reporting to 1041
1547	1547	the office. 1042
1548	1548	2. Establish procedures for selecting an administering 1043
1549	1549	carrier and set forth the powers and duties of the administering 1044
1550	1550	carrier. 1045
1551	1551	3. Establish procedures for reinsuring risks. 1046
1552	1552	4. Establish procedures for collecting assessments from 1047
1553	1553	participating carriers to provide for claims reinsured by the 1048
1554	1554	program and for administr ative expenses, other than amounts 1049
1555	1555	payable to the administrative carrier, incurred or estimated to 1050
1556	1556
1557	1557	HB 1429 2025
1558	1558
1559	1559
1560	1560
1561	1561	CODING: Words stricken are deletions; words underlined are additions.
1562	1562	hb1429-00
1563	1563	Page 43 of 168
1564	1564	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
1565	1565
1566	1566
1567	1567
1568	1568	be incurred during the period for which the assessment is made. 1051
1569	1569	5. Provide for any additional matters at the discretion of 1052
1570	1570	the board. 1053
1571	1571	(e) The board shall recommend to the office market conduct 1054
1572	1572	requirements and other requirements for carriers and agents, 1055
1573	1573	including requirements relating to: 1056
1574	1574	1. Registration by each carrier with the office of its 1057
1575	1575	intention to be a small employer carrier under this section; 1058
1576	1576	2. Publication by the office of a list of all small 1059
1577	1577	employer carriers, including a requirement applicable to agents 1060
1578	1578	and carriers that a health benefit plan may not be sold by a 1061
1579	1579	carrier that is not identified as a small employer carrier; 1062
1580	1580	3. The availability of a broadly publicized, toll -free 1063
1581	1581	telephone number for access by small employers to information 1064
1582	1582	concerning this section; 1065
1583	1583	4. Periodic reports by carriers and agents concerning 1066
1584	1584	health benefit plans issued; and 1067
1585	1585	5. Methods concerning periodic demonstr ation by small 1068
1586	1586	employer carriers and agents that they are marketing or issuing 1069
1587	1587	health benefit plans to small employers. 1070
1588	1588	(f) The program has the general powers and authority 1071
1589	1589	granted under the laws of this state to insurance companies and 1072
1590	1590	health maintenance organizations licensed to transact business, 1073
1591	1591	except the power to issue health benefit plans directly to 1074
1592	1592	groups or individuals. In addition thereto, the program has 1075
1593	1593
1594	1594	HB 1429 2025
1595	1595
1596	1596
1597	1597
1598	1598	CODING: Words stricken are deletions; words underlined are additions.
1599	1599	hb1429-00
1600	1600	Page 44 of 168
1601	1601	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
1602	1602
1603	1603
1604	1604
1605	1605	specific authority to: 1076
1606	1606	1. Enter into contracts as necessary or proper to carry 1077
1607	1607	out the provisions and purposes of this act, including the 1078
1608	1608	authority to enter into contracts with similar programs of other 1079
1609	1609	states for the joint performance of common functions or with 1080
1610	1610	persons or other organizations for the performance of 1081
1611	1611	administrative functions. 1082
1612	1612	2. Sue or be sued, including taking any legal action 1083
1613	1613	necessary or proper for recovering any assessments and penalties 1084
1614	1614	for, on behalf of, or against the program or any carrier. 1085
1615	1615	3. Take any legal action necessary to avoid the payment of 1086
1616	1616	improper claims against the program. 1087
1617	1617	4. Issue reinsurance policies, in accordance with the 1088
1618	1618	requirements of this act. 1089
1619	1619	5. Establish rules, conditions, and procedures for 1090
1620	1620	reinsurance risks under the program participation. 1091
1621	1621	6. Establish actuarial functions as appropriate for the 1092
1622	1622	operation of the program. 1093
1623	1623	7. Assess participating carriers in accordance with 1094
1624	1624	paragraph (j), and make advance interim assessments as may be 1095
1625	1625	reasonable and necessary for organizational and interim 1096
1626	1626	operating expenses. Interim assessments shall be c redited as 1097
1627	1627	offsets against any regular assessments due following the close 1098
1628	1628	of the calendar year. 1099
1629	1629	8. Appoint appropriate legal, actuarial, and other 1100
1630	1630
1631	1631	HB 1429 2025
1632	1632
1633	1633
1634	1634
1635	1635	CODING: Words stricken are deletions; words underlined are additions.
1636	1636	hb1429-00
1637	1637	Page 45 of 168
1638	1638	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
1639	1639
1640	1640
1641	1641
1642	1642	committees as necessary to provide technical assistance in the 1101
1643	1643	operation of the program, and in any other function within the 1102
1644	1644	authority of the program. 1103
1645	1645	9. Borrow money to effect the purposes of the program. Any 1104
1646	1646	notes or other evidences of indebtedness of the program which 1105
1647	1647	are not in default constitute legal investments for carriers and 1106
1648	1648	may be carried as admi tted assets. 1107
1649	1649	10. To the extent necessary, increase the $5,000 1108
1650	1650	deductible reinsurance requirement to adjust for the effects of 1109
1651	1651	inflation. 1110
1652	1652	(g) A reinsuring carrier may reinsure with the program 1111
1653	1653	coverage of an eligible employee of a small employer, or any 1112
1654	1654	dependent of such an employee, subject to each of the following 1113
1655	1655	provisions: 1114
1656	1656	1. Except in the case of a late enrollee, a reinsuring 1115
1657	1657	carrier may reinsure an eligible employee or dependent within 60 1116
1658	1658	days after the commencement of the coverage of the small 1117
1659	1659	employer. A newly employed eligible employee or dependent of a 1118
1660	1660	small employer may be reinsured within 60 days after the 1119
1661	1661	commencement of his or her coverage. 1120
1662	1662	2. A small employer carrier may reinsure an entire 1121
1663	1663	employer group within 60 days after the commen cement of the 1122
1664	1664	group's coverage under the plan. 1123
1665	1665	3. The program may not reimburse a participating carrier 1124
1666	1666	with respect to the claims of a reinsured employee or dependent 1125
1667	1667
1668	1668	HB 1429 2025
1669	1669
1670	1670
1671	1671
1672	1672	CODING: Words stricken are deletions; words underlined are additions.
1673	1673	hb1429-00
1674	1674	Page 46 of 168
1675	1675	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
1676	1676
1677	1677
1678	1678
1679	1679	until the carrier has paid incurred claims of at least $5,000 in 1126
1680	1680	a calendar year for b enefits covered by the program. In 1127
1681	1681	addition, the reinsuring carrier shall be responsible for 10 1128
1682	1682	percent of the next $50,000 and 5 percent of the next $100,000 1129
1683	1683	of incurred claims during a calendar year and the program shall 1130
1684	1684	reinsure the remainder. 1131
1685	1685	4. The board annually shall adjust the initial level of 1132
1686	1686	claims and the maximum limit to be retained by the carrier to 1133
1687	1687	reflect increases in costs and utilization within the standard 1134
1688	1688	market for health benefit plans within the state. The adjustment 1135
1689	1689	shall not be less than the annual change in the medical 1136
1690	1690	component of the "Consumer Price Index for All Urban Consumers" 1137
1691	1691	of the Bureau of Labor Statistics of the Department of Labor, 1138
1692	1692	unless the board proposes and the office approves a lower 1139
1693	1693	adjustment factor. 1140
1694	1694	5. A small employer carrier may terminate reinsurance for 1141
1695	1695	all reinsured employees or dependents on any plan anniversary. 1142
1696	1696	6. The premium rate charged for reinsurance by the program 1143
1697	1697	to a health maintenance organization that is approved by the 1144
1698	1698	Secretary of Health and H uman Services as a federally qualified 1145
1699	1699	health maintenance organization pursuant to 42 U.S.C. s. 1146
1700	1700	300e(c)(2)(A) and that, as such, is subject to requirements that 1147
1701	1701	limit the amount of risk that may be ceded to the program, which 1148
1702	1702	requirements are more restrict ive than subparagraph 3., shall be 1149
1703	1703	reduced by an amount equal to that portion of the risk, if any, 1150
1704	1704
1705	1705	HB 1429 2025
1706	1706
1707	1707
1708	1708
1709	1709	CODING: Words stricken are deletions; words underlined are additions.
1710	1710	hb1429-00
1711	1711	Page 47 of 168
1712	1712	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
1713	1713
1714	1714
1715	1715
1716	1716	which exceeds the amount set forth in subparagraph 3. which may 1151
1717	1717	not be ceded to the program. 1152
1718	1718	7. The board may consider adjustments to the premium rates 1153
1719	1719	charged for reinsurance by the program for carriers that use 1154
1720	1720	effective cost containment measures, including high -cost case 1155
1721	1721	management, as defined by the board. 1156
1722	1722	8. A reinsuring carrier shall apply its case -management 1157
1723	1723	and claims-handling techniques, includ ing, but not limited to, 1158
1724	1724	utilization review, individual case management, preferred 1159
1725	1725	provider provisions, other managed care provisions or methods of 1160
1726	1726	operation, consistently with both reinsured business and 1161
1727	1727	nonreinsured business. 1162
1728	1728	(h)1. The board, as part o f the plan of operation, shall 1163
1729	1729	establish a methodology for determining premium rates to be 1164
1730	1730	charged by the program for reinsuring small employers and 1165
1731	1731	individuals pursuant to this section. The methodology shall 1166
1732	1732	include a system for classification of small em ployers that 1167
1733	1733	reflects the types of case characteristics commonly used by 1168
1734	1734	small employer carriers in the state. The methodology shall 1169
1735	1735	provide for the development of basic reinsurance premium rates, 1170
1736	1736	which shall be multiplied by the factors set for them in th is 1171
1737	1737	paragraph to determine the premium rates for the program. The 1172
1738	1738	basic reinsurance premium rates shall be established by the 1173
1739	1739	board, subject to the approval of the office. The premium rates 1174
1740	1740	set by the board may vary by geographical area, as determined 1175
1741	1741
1742	1742	HB 1429 2025
1743	1743
1744	1744
1745	1745
1746	1746	CODING: Words stricken are deletions; words underlined are additions.
1747	1747	hb1429-00
1748	1748	Page 48 of 168
1749	1749	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
1750	1750
1751	1751
1752	1752
1753	1753	under this section, to reflect differences in cost. The 1176
1754	1754	multiplying factors must be established as follows: 1177
1755	1755	a. The entire group may be reinsured for a rate that is 1178
1756	1756	1.5 times the rate established by the board. 1179
1757	1757	b. An eligible employee or dependent may be rein sured for 1180
1758	1758	a rate that is 5 times the rate established by the board. 1181
1759	1759	2. The board periodically shall review the methodology 1182
1760	1760	established, including the system of classification and any 1183
1761	1761	rating factors, to assure that it reasonably reflects the claims 1184
1762	1762	experience of the program. The board may propose changes to the 1185
1763	1763	rates which shall be subject to the approval of the office. 1186
1764	1764	(i) If a health benefit plan for a small employer issued 1187
1765	1765	in accordance with this subsection is entirely or partially 1188
1766	1766	reinsured with the program, the premium charged to the small 1189
1767	1767	employer for any rating period for the coverage issued must be 1190
1768	1768	consistent with the requirements relating to premium rates set 1191
1769	1769	forth in this section. 1192
1770	1770	(j)1. Before July 1 of each calendar year, the board shall 1193
1771	1771	determine and report to the office the program net loss for the 1194
1772	1772	previous year, including administrative expenses for that year, 1195
1773	1773	and the incurred losses for the year, taking into account 1196
1774	1774	investment income and other appropriate gains and losses. 1197
1775	1775	2. Any net loss for the year shall be recouped by 1198
1776	1776	assessment of the carriers, as follows: 1199
1777	1777	a. The operating losses of the program shall be assessed 1200
1778	1778
1779	1779	HB 1429 2025
1780	1780
1781	1781
1782	1782
1783	1783	CODING: Words stricken are deletions; words underlined are additions.
1784	1784	hb1429-00
1785	1785	Page 49 of 168
1786	1786	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
1787	1787
1788	1788
1789	1789
1790	1790	in the following order subject to the specified limitations. The 1201
1791	1791	first tier of assessments shall be made against reinsuri ng 1202
1792	1792	carriers in an amount which shall not exceed 5 percent of each 1203
1793	1793	reinsuring carrier's premiums from health benefit plans covering 1204
1794	1794	small employers. If such assessments have been collected and 1205
1795	1795	additional moneys are needed, the board shall make a second tier 1206
1796	1796	of assessments in an amount which shall not exceed 0.5 percent 1207
1797	1797	of each carrier's health benefit plan premiums. Except as 1208
1798	1798	provided in paragraph (m), risk -assuming carriers are exempt 1209
1799	1799	from all assessments authorized pursuant to this section. The 1210
1800	1800	amount paid by a reinsuring carrier for the first tier of 1211
1801	1801	assessments shall be credited against any additional assessments 1212
1802	1802	made. 1213
1803	1803	b. The board shall equitably assess carriers for operating 1214
1804	1804	losses of the plan based on market share. The board shall 1215
1805	1805	annually assess each carrier a portion of the operating losses 1216
1806	1806	of the plan. The first tier of assessments shall be determined 1217
1807	1807	by multiplying the operating losses by a fraction, the numerator 1218
1808	1808	of which equals the reinsuring carrier's earned premium 1219
1809	1809	pertaining to direct writing s of small employer health benefit 1220
1810	1810	plans in the state during the calendar year for which the 1221
1811	1811	assessment is levied, and the denominator of which equals the 1222
1812	1812	total of all such premiums earned by reinsuring carriers in the 1223
1813	1813	state during that calendar year. The second tier of assessments 1224
1814	1814	shall be based on the premiums that all carriers, except risk -1225
1815	1815
1816	1816	HB 1429 2025
1817	1817
1818	1818
1819	1819
1820	1820	CODING: Words stricken are deletions; words underlined are additions.
1821	1821	hb1429-00
1822	1822	Page 50 of 168
1823	1823	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
1824	1824
1825	1825
1826	1826
1827	1827	assuming carriers, earned on all health benefit plans written in 1226
1828	1828	this state. The board may levy interim assessments against 1227
1829	1829	carriers to ensure the financial ability of the plan to cover 1228
1830	1830	claims expenses and administrative expenses paid or estimated to 1229
1831	1831	be paid in the operation of the plan for the calendar year prior 1230
1832	1832	to the association's anticipated receipt of annual assessments 1231
1833	1833	for that calendar year. Any interim assessme nt is due and 1232
1834	1834	payable within 30 days after receipt by a carrier of the interim 1233
1835	1835	assessment notice. Interim assessment payments shall be credited 1234
1836	1836	against the carrier's annual assessment. Health benefit plan 1235
1837	1837	premiums and benefits paid by a carrier that are le ss than an 1236
1838	1838	amount determined by the board to justify the cost of collection 1237
1839	1839	may not be considered for purposes of determining assessments. 1238
1840	1840	c. Subject to the approval of the office, the board shall 1239
1841	1841	make an adjustment to the assessment formula for reinsuri ng 1240
1842	1842	carriers that are approved as federally qualified health 1241
1843	1843	maintenance organizations by the Secretary of Health and Human 1242
1844	1844	Services pursuant to 42 U.S.C. s. 300e(c)(2)(A) to the extent, 1243
1845	1845	if any, that restrictions are placed on them that are not 1244
1846	1846	imposed on other small employer carriers. 1245
1847	1847	3. Before July 1 of each year, the board shall determine 1246
1848	1848	and file with the office an estimate of the assessments needed 1247
1849	1849	to fund the losses incurred by the program in the previous 1248
1850	1850	calendar year. 1249
1851	1851	4. If the board determines t hat the assessments needed to 1250
1852	1852
1853	1853	HB 1429 2025
1854	1854
1855	1855
1856	1856
1857	1857	CODING: Words stricken are deletions; words underlined are additions.
1858	1858	hb1429-00
1859	1859	Page 51 of 168
1860	1860	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
1861	1861
1862	1862
1863	1863
1864	1864	fund the losses incurred by the program in the previous calendar 1251
1865	1865	year will exceed the amount specified in subparagraph 2., the 1252
1866	1866	board shall evaluate the operation of the program and report its 1253
1867	1867	findings, including any recommenda tions for changes to the plan 1254
1868	1868	of operation, to the office within 180 days following the end of 1255
1869	1869	the calendar year in which the losses were incurred. The 1256
1870	1870	evaluation shall include an estimate of future assessments, the 1257
1871	1871	administrative costs of the program, the appropriateness of the 1258
1872	1872	premiums charged and the level of carrier retention under the 1259
1873	1873	program, and the costs of coverage for small employers. If the 1260
1874	1874	board fails to file a report with the office within 180 days 1261
1875	1875	following the end of the applicable calendar y ear, the office 1262
1876	1876	may evaluate the operations of the program and implement such 1263
1877	1877	amendments to the plan of operation the office deems necessary 1264
1878	1878	to reduce future losses and assessments. 1265
1879	1879	5. If assessments exceed the amount of the actual losses 1266
1880	1880	and administrative expenses of the program, the excess shall be 1267
1881	1881	held as interest and used by the board to offset future losses 1268
1882	1882	or to reduce program premiums. As used in this paragraph, the 1269
1883	1883	term "future losses" includes reserves for incurred but not 1270
1884	1884	reported claims. 1271
1885	1885	6. Each carrier's proportion of the assessment shall be 1272
1886	1886	determined annually by the board, based on annual statements and 1273
1887	1887	other reports considered necessary by the board and filed by the 1274
1888	1888	carriers with the board. 1275
1889	1889
1890	1890	HB 1429 2025
1891	1891
1892	1892
1893	1893
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1895	1895	hb1429-00
1896	1896	Page 52 of 168
1897	1897	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
1898	1898
1899	1899
1900	1900
1901	1901	7. Provision shall be made in the plan of oper ation for 1276
1902	1902	the imposition of an interest penalty for late payment of an 1277
1903	1903	assessment. 1278
1904	1904	8. A carrier may seek, from the office, a deferment, in 1279
1905	1905	whole or in part, from any assessment made by the board. The 1280
1906	1906	office may defer, in whole or in part, the assessment of a 1281
1907	1907	carrier if, in the opinion of the office, the payment of the 1282
1908	1908	assessment would place the carrier in a financially impaired 1283
1909	1909	condition. If an assessment against a carrier is deferred, in 1284
1910	1910	whole or in part, the amount by which the assessment is deferred 1285
1911	1911	may be assessed against the other carriers in a manner 1286
1912	1912	consistent with the basis for assessment set forth in this 1287
1913	1913	section. The carrier receiving such deferment remains liable to 1288
1914	1914	the program for the amount deferred and is prohibited from 1289
1915	1915	reinsuring any indivi duals or groups in the program if it fails 1290
1916	1916	to pay assessments. 1291
1917	1917	(k) Neither the participation in the program as reinsuring 1292
1918	1918	carriers, the establishment of rates, forms, or procedures, nor 1293
1919	1919	any other joint or collective action required by this act, may 1294
1920	1920	be the basis of any legal action, criminal or civil liability, 1295
1921	1921	or penalty against the program or any of its carriers either 1296
1922	1922	jointly or separately. 1297
1923	1923	(l) The board shall monitor compliance with this section, 1298
1924	1924	including the market conduct of small employer carriers, and 1299
1925	1925	shall report to the office any unfair trade practices and 1300
1926	1926
1927	1927	HB 1429 2025
1928	1928
1929	1929
1930	1930
1931	1931	CODING: Words stricken are deletions; words underlined are additions.
1932	1932	hb1429-00
1933	1933	Page 53 of 168
1934	1934	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
1935	1935
1936	1936
1937	1937
1938	1938	misleading or unfair conduct by a small employer carrier that 1301
1939	1939	has been reported to the board by agents, consumers, or any 1302
1940	1940	other person. The office shall investigate all reports and, upon 1303
1941	1941	a finding of noncompliance with this section or of unfair or 1304
1942	1942	misleading practices, shall take action against the small 1305
1943	1943	employer carrier as permitte d under the insurance code or 1306
1944	1944	chapter 641. The board is not given investigatory or regulatory 1307
1945	1945	powers, but must forward all reports of cases or abuse or 1308
1946	1946	misrepresentation to the office. 1309
1947	1947	(m) Notwithstanding paragraph (j), the administrative 1310
1948	1948	expenses of the program shall be recouped by assessment of risk -1311
1949	1949	assuming carriers and reinsuring carriers and such amounts shall 1312
1950	1950	not be considered part of the operating losses of the plan for 1313
1951	1951	the purposes of this paragraph. Each carrier's portion of such 1314
1952	1952	administrative expenses shall be determined by multiplying the 1315
1953	1953	total of such administrative expenses by a fraction, the 1316
1954	1954	numerator of which equals the carrier's earned premium 1317
1955	1955	pertaining to direct writing of small employer health benefit 1318
1956	1956	plans in the state during the calen dar year for which the 1319
1957	1957	assessment is levied, and the denominator of which equals the 1320
1958	1958	total of such premiums earned by all carriers in the state 1321
1959	1959	during such calendar year. 1322
1960	1960	(n) The board shall advise the office, the Agency for 1323
1961	1961	Health Care Administration, t he department, other executive 1324
1962	1962	departments, and the Legislature on health insurance issues. 1325
1963	1963
1964	1964	HB 1429 2025
1965	1965
1966	1966
1967	1967
1968	1968	CODING: Words stricken are deletions; words underlined are additions.
1969	1969	hb1429-00
1970	1970	Page 54 of 168
1971	1971	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
1972	1972
1973	1973
1974	1974
1975	1975	Specifically, the board shall: 1326
1976	1976	1. Provide a forum for stakeholders, consisting of 1327
1977	1977	insurers, employers, agents, consumers, and regulators, in the 1328
1978	1978	private health insurance market in this state. 1329
1979	1979	2. Review and recommend strategies to improve the 1330
1980	1980	functioning of the health insurance markets in this state with a 1331
1981	1981	specific focus on market stability, access, and pricing. 1332
1982	1982	3. Make recommendations to the office for legislat ion 1333
1983	1983	addressing health insurance market issues and provide comments 1334
1984	1984	on health insurance legislation proposed by the office. 1335
1985	1985	4. Meet at least three times each year. One meeting shall 1336
1986	1986	be held to hear reports and to secure public comment on the 1337
1987	1987	health insurance market, to develop any legislation needed to 1338
1988	1988	address health insurance market issues, and to provide comments 1339
1989	1989	on health insurance legislation proposed by the office. 1340
1990	1990	5. Issue a report to the office on the state of the health 1341
1991	1991	insurance market by Septem ber 1 each year. The report shall 1342
1992	1992	include recommendations for changes in the health insurance 1343
1993	1993	market, results from implementation of previous recommendations, 1344
1994	1994	and information on health insurance markets. 1345
1995	1995	Section 14. Paragraphs (c), (d), and (e) are add ed to 1346
1996	1996	subsection (2) of section 627.711, Florida Statutes, to read: 1347
1997	1997	627.711 Notice of premium discounts for hurricane loss 1348
1998	1998	mitigation; uniform mitigation verification inspection form. — 1349
1999	1999	(2) 1350
2000	2000
2001	2001	HB 1429 2025
2002	2002
2003	2003
2004	2004
2005	2005	CODING: Words stricken are deletions; words underlined are additions.
2006	2006	hb1429-00
2007	2007	Page 55 of 168
2008	2008	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
2009	2009
2010	2010
2011	2011
2012	2012	(c) The office shall contract with a state university to 1351
2013	2013	design, operate, upgrade, and maintain a statewide database for 1352
2014	2014	uniform mitigation verification inspection forms. This database 1353
2015	2015	must be managed by the office to collect and evaluate mitigation 1354
2016	2016	features of residential properties within the state. 1355
2017	2017	(d) Beginning January 1, 2026, each insurer shall 1356
2018	2018	electronically file a copy of uniform mitigation inspection 1357
2019	2019	forms submitted by policyholders in the database created 1358
2020	2020	pursuant to paragraph (c) within 15 business days after receipt 1359
2021	2021	using the electronic format presc ribed by the office. 1360
2022	2022	(e) The Financial Services Commission shall adopt rules to 1361
2023	2023	implement this subsection. 1362
2024	2024	Section 15. Effective upon this act becoming a law, 1363
2025	2025	subsection (12) of section 627.7152, Florida Statutes, is 1364
2026	2026	amended to read: 1365
2027	2027	627.7152 Assignment agreements.— 1366
2028	2028	(12) The office shall require each insurer to report by 1367
2029	2029	January 30, 2022, and each year thereafter data on each 1368
2030	2030	residential and commercial property insurance claim paid in the 1369
2031	2031	prior calendar year under an assignment agreement. The Fina ncial 1370
2032	2032	Services Commission shall adopt by rule a list of the data 1371
2033	2033	required, which must include specific data about claims 1372
2034	2034	adjustment and settlement timeframes and trends, grouped by 1373
2035	2035	whether litigated or not litigated and by loss adjustment 1374
2036	2036	expenses. 1375
2037	2037
2038	2038	HB 1429 2025
2039	2039
2040	2040
2041	2041
2042	2042	CODING: Words stricken are deletions; words underlined are additions.
2043	2043	hb1429-00
2044	2044	Page 56 of 168
2045	2045	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
2046	2046
2047	2047
2048	2048
2049	2049	Section 16. Section 627.9145, Florida Statutes, is created 1376
2050	2050	to read: 1377
2051	2051	627.9145 Reports by residential property insurers. —1378
2052	2052	Beginning March 1, 2026, and by March 1 every year thereafter, 1379
2053	2053	each authorized insurer and surplus lines insurer transacting 1380
2054	2054	residential property insurance in this state shall file with the 1381
2055	2055	office a report addressing the following areas: 1382
2056	2056	(1) Policy types, perils covered, statuses, and premiums. 1383
2057	2057	(2) Location and limits of writings in this state. 1384
2058	2058	(3) Coverages, deductibles, and exclusion s. 1385
2059	2059	(4) Mitigation discounts. 1386
2060	2060	(5) Claims reporting requirements. 1387
2061	2061	(6) Any other information deemed necessary by the 1388
2062	2062	commission to provide the office with the ability to track 1389
2063	2063	mitigation and resiliency trends occurring in the residential 1390
2064	2064	property market. 1391
2065	2065	1392
2066	2066	The commission shall adopt rules specifying the information 1393
2067	2067	required to be reported under this section and the format 1394
2068	2068	required for the reports. 1395
2069	2069	Section 17. Subsections (2) and (5) of section 627.915, 1396
2070	2070	Florida Statutes, are amended, and a new subsecti on (2) is added 1397
2071	2071	to that section, to read: 1398
2072	2072	627.915 Insurer experience reporting. — 1399
2073	2073	(2) Beginning January 1, 2026, each insurer transacting 1400
2074	2074
2075	2075	HB 1429 2025
2076	2076
2077	2077
2078	2078
2079	2079	CODING: Words stricken are deletions; words underlined are additions.
2080	2080	hb1429-00
2081	2081	Page 57 of 168
2082	2082	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
2083	2083
2084	2084
2085	2085
2086	2086	private passenger automobile insurance in this state shall file 1401
2087	2087	monthly with the office a report addressing the fol lowing areas: 1402
2088	2088	(a) Policy coverage categories, including policies in 1403
2089	2089	force and total direct premiums earned and written. 1404
2090	2090	(b) Type, location, and limits of writings in this state. 1405
2091	2091	(c) Claims reporting requirements. 1406
2092	2092	(d) Any other information deemed ne cessary by the 1407
2093	2093	commission to provide the office with the ability to track 1408
2094	2094	trends occurring in the private passenger automobile insurance 1409
2095	2095	market. 1410
2096	2096	1411
2097	2097	The commission shall adopt rules specifying the information 1412
2098	2098	required to be reported under this subsection and the format 1413
2099	2099	required for the reports. 1414
2100	2100	(2) Each insurer transacting fire, homeowner's multiple 1415
2101	2101	peril, commercial multiple peril, medical malpractice, products 1416
2102	2102	liability, workers' compensation, private passenger automobile 1417
2103	2103	liability, commercial automobile liability, private passenger 1418
2104	2104	automobile physical damage, commercial automobile physical 1419
2105	2105	damage, officers' and directors' liability insurance, or other 1420
2106	2106	liability insurance shall report, for each such line of 1421
2107	2107	insurance, the information specified in this subs ection to the 1422
2108	2108	office. The information shall be reported for direct Florida 1423
2109	2109	business only and shall be reported on a calendar -year basis 1424
2110	2110	annually by April 1 for the preceding calendar year: 1425
2111	2111
2112	2112	HB 1429 2025
2113	2113
2114	2114
2115	2115
2116	2116	CODING: Words stricken are deletions; words underlined are additions.
2117	2117	hb1429-00
2118	2118	Page 58 of 168
2119	2119	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
2120	2120
2121	2121
2122	2122
2123	2123	(a) Direct premiums written. 1426
2124	2124	(b) Direct premiums earned. 1427
2125	2125	(c) Loss reserves for all known claims: 1428
2126	2126	1. At beginning of the year. 1429
2127	2127	2. At end of the year. 1430
2128	2128	(d) Reserves for losses incurred but not reported: 1431
2129	2129	1. At beginning of the year. 1432
2130	2130	2. At end of the year. 1433
2131	2131	(e) Allocated loss adjustment expense: 1434
2132	2132	1. Reserve at beginning of the year. 1435
2133	2133	2. Reserve at end of the year. 1436
2134	2134	3. Paid during the year. 1437
2135	2135	(f) Unallocated loss adjustment expense: 1438
2136	2136	1. Reserve at beginning of the year. 1439
2137	2137	2. Reserve at end of the year. 1440
2138	2138	3. Paid during the year. 1441
2139	2139	(g) Direct losses paid. 1442
2140	2140	(h) Underwriting income or loss. 1443
2141	2141	(i) Commissions and brokerage fees. 1444
2142	2142	(j) Taxes, licenses, and fees. 1445
2143	2143	(k) Other acquisition costs. 1446
2144	2144	(l) General expenses. 1447
2145	2145	(m) Policyholder dividends. 1448
2146	2146	(n) Net investment gain or loss and other income gain or 1449
2147	2147	loss allocated pro rata by earned premium to Florida business 1450
2148	2148
2149	2149	HB 1429 2025
2150	2150
2151	2151
2152	2152
2153	2153	CODING: Words stricken are deletions; words underlined are additions.
2154	2154	hb1429-00
2155	2155	Page 59 of 168
2156	2156	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
2157	2157
2158	2158
2159	2159
2160	2160	utilizing the investment allocation formula contained in the 1451
2161	2161	National Association of Insurance Commissioner's Profitability 1452
2162	2162	Report by line by state. 1453
2163	2163	(5) Any insurer or insurer group which does not wr ite at 1454
2164	2164	least 0.5 percent of the Florida market based on premiums 1455
2165	2165	written shall not have to file any report required by subsection 1456
2166	2166	(2) other than a report indicating its percentage of the market 1457
2167	2167	share. That percentage shall be calculated by dividing the 1458
2168	2168	current premiums written by the preceding year's total premiums 1459
2169	2169	written in the state for that line of insurance. 1460
2170	2170	Section 18. Effective upon this act becoming a law, 1461
2171	2171	subsection (2) of section 628.081, Florida Statutes, is amended 1462
2172	2172	to read: 1463
2173	2173	628.081 Incorporation of domestic insurer. — 1464
2174	2174	(2) The incorporators shall execute articles of 1465
2175	2175	incorporation in triplicate. At least three of them shall 1466
2176	2176	acknowledge execution before an officer authorized to take 1467
2177	2177	acknowledgments. 1468
2178	2178	Section 19. Effective upon this act bec oming a law, 1469
2179	2179	subsections (2), (3), and (4) of section 628.091, Florida 1470
2180	2180	Statutes, are amended to read: 1471
2181	2181	628.091 Filing, approval of articles of incorporation. — 1472
2182	2182	(2) The incorporators shall file the triplicate originals 1473
2183	2183	of the articles of incorporation with the office, accompanied by 1474
2184	2184	the filing fee specified in s. 624.501. 1475
2185	2185
2186	2186	HB 1429 2025
2187	2187
2188	2188
2189	2189
2190	2190	CODING: Words stricken are deletions; words underlined are additions.
2191	2191	hb1429-00
2192	2192	Page 60 of 168
2193	2193	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
2194	2194
2195	2195
2196	2196
2197	2197	(3) The office shall promptly examine the articles of 1476
2198	2198	incorporation. If it finds that the articles of incorporation 1477
2199	2199	conform to law, and that a permit has b een or will be issued, it 1478
2200	2200	shall endorse its approval on each of the triplicate originals 1479
2201	2201	of the articles of incorporation , retain one copy for its files, 1480
2202	2202	and return the articles of incorporation remaining copies to the 1481
2203	2203	incorporators for filing with the Dep artment of State. 1482
2204	2204	(4) If the office does not so find, it shall refuse to 1483
2205	2205	approve the articles of incorporation and shall return the 1484
2206	2206	originals. 1485
2207	2207	Section 20. Effective upon this act becoming a law, 1486
2208	2208	subsections (2) and (3) of section 628.111, Florida Sta tutes, 1487
2209	2209	are amended to read: 1488
2210	2210	628.111 Amendment of articles of incorporation; mutual 1489
2211	2211	insurer.— 1490
2212	2212	(2)(a) Upon adoption of the amendment, the insurer shall 1491
2213	2213	make in triplicate under its corporate seal a certificate 1492
2214	2214	thereof, setting forth the amendment and the date and manner of 1493
2215	2215	the adoption thereof, which certificate shall be executed by the 1494
2216	2216	insurer's president or vice president and secretary or assistant 1495
2217	2217	secretary and acknowledged before an officer authorized to take 1496
2218	2218	acknowledgments. The insurer shall deliver the triplicate 1497
2219	2219	originals of the certificate to the office, together with the 1498
2220	2220	filing fee specified in s. 624.501. 1499
2221	2221	(b) The office shall promptly examine the certificate of 1500
2222	2222
2223	2223	HB 1429 2025
2224	2224
2225	2225
2226	2226
2227	2227	CODING: Words stricken are deletions; words underlined are additions.
2228	2228	hb1429-00
2229	2229	Page 61 of 168
2230	2230	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
2231	2231
2232	2232
2233	2233
2234	2234	amendment,; and, if it finds that the certificate and the 1501
2235	2235	amendment comply with law , it shall endorse its approval on the 1502
2236	2236	certificate of amendment upon each of the triplicate originals, 1503
2237	2237	place one on file in its office, and return the remaining sets 1504
2238	2238	to the insurer. The insurer shall forthwith file such endorsed 1505
2239	2239	certificate certificates of amendment with the Department of 1506
2240	2240	State. The amendment shall be effective when filed with and 1507
2241	2241	approved by the Department of State. 1508
2242	2242	(3) If the office finds that the proposed amendment or 1509
2243	2243	certificate does not comply with the law, it shall not approve 1510
2244	2244	the same, and shall return the triplicate certificate of 1511
2245	2245	amendment to the insurer. 1512
2246	2246	Section 21. Paragraph (a) of subsection (1) and paragraph 1513
2247	2247	(b) of subsection (4) of section 628.461, Florida Statutes, are 1514
2248	2248	amended to read: 1515
2249	2249	628.461 Acquisition of controllin g stock.— 1516
2250	2250	(1) A person may not, individually or in conjunction with 1517
2251	2251	any affiliated person of such person, acquire directly or 1518
2252	2252	indirectly, conclude a tender offer or exchange offer for, enter 1519
2253	2253	into any agreement to exchange securities for, or otherwise 1520
2254	2254	finally acquire 10 percent or more of the outstanding voting 1521
2255	2255	securities of a domestic stock insurer or of a controlling 1522
2256	2256	company, unless: 1523
2257	2257	(a) The person or affiliated person has filed with the 1524
2258	2258	office and sent by registered mail to the principal office of 1525
2259	2259
2260	2260	HB 1429 2025
2261	2261
2262	2262
2263	2263
2264	2264	CODING: Words stricken are deletions; words underlined are additions.
2265	2265	hb1429-00
2266	2266	Page 62 of 168
2267	2267	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
2268	2268
2269	2269
2270	2270
2271	2271	the insurer and controlling company a letter of notification 1526
2272	2272	regarding the transaction or proposed transaction within 5 days 1527
2273	2273	after any form of tender offer or exchange offer is proposed, or 1528
2274	2274	within 5 days after the acquisition of the securities if no 1529
2275	2275	tender offer or exchange offer is involved. The notification 1530
2276	2276	must be provided on forms prescribed by the commission 1531
2277	2277	containing information determined necessary to understand the 1532
2278	2278	transaction and identify all purchasers and owners involved; 1533
2279	2279	1534
2280	2280	A filing required under t his subsection must be made for any 1535
2281	2281	acquisition that equals or exceeds 10 percent of the outstanding 1536
2282	2282	voting securities. 1537
2283	2283	(4) 1538
2284	2284	(b) Any corporation, association, or trust filing the 1539
2285	2285	statement required by this section shall give all required 1540
2286	2286	information that is within the knowledge of the directors, 1541
2287	2287	officers, or trustees (or others performing functions similar to 1542
2288	2288	those of a director, officer, or trustee) of the corporation, 1543
2289	2289	association, or trust making the filing and of any person 1544
2290	2290	controlling either directly or indirectly such corporation, 1545
2291	2291	association, or trust. A copy of the statement and any 1546
2292	2292	amendments to the statement shall be sent by registered mail to 1547
2293	2293	the insurer at its principal office within the state and to any 1548
2294	2294	controlling company at its principal offi ce. If any material 1549
2295	2295	change occurs in the facts set forth in the statement filed with 1550
2296	2296
2297	2297	HB 1429 2025
2298	2298
2299	2299
2300	2300
2301	2301	CODING: Words stricken are deletions; words underlined are additions.
2302	2302	hb1429-00
2303	2303	Page 63 of 168
2304	2304	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
2305	2305
2306	2306
2307	2307
2308	2308	the office and sent to such insurer or controlling company 1551
2309	2309	pursuant to this section, an amendment setting forth such 1552
2310	2310	changes shall be filed immediately with the office and sent 1553
2311	2311	immediately to such insurer and controlling company. 1554
2312	2312	Section 22. Paragraph (b) of subsection (5) of section 1555
2313	2313	628.4615, Florida Statutes, is amended to read: 1556
2314	2314	628.4615 Specialty insurers; acquisition of controlling 1557
2315	2315	stock, ownership interest, assets, or control; merger or 1558
2316	2316	consolidation.— 1559
2317	2317	(5) 1560
2318	2318	(b) Any person filing the statement required by this 1561
2319	2319	section shall give all required information that is within the 1562
2320	2320	knowledge of: 1563
2321	2321	1. The directors, officers, or trustees, if a corporation, 1564
2322	2322	or 1565
2323	2323	2. The partners, owners, managers, or joint venturers, or 1566
2324	2324	others performing functions similar to those of a director, 1567
2325	2325	officer, or trustee, if not a corporation, 1568
2326	2326	1569
2327	2327	of the person making the filing and of any person controlling 1570
2328	2328	either directly or indirectly such pers on. If any material 1571
2329	2329	change occurs in the facts set forth in the application filed 1572
2330	2330	with the office pursuant to this section, an amendment setting 1573
2331	2331	forth such changes shall be filed immediately with the office, 1574
2332	2332	and a copy of the amendment shall be sent by registered mail to 1575
2333	2333
2334	2334	HB 1429 2025
2335	2335
2336	2336
2337	2337
2338	2338	CODING: Words stricken are deletions; words underlined are additions.
2339	2339	hb1429-00
2340	2340	Page 64 of 168
2341	2341	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
2342	2342
2343	2343
2344	2344
2345	2345	the principal office of the specialty insurer and to the 1576
2346	2346	principal office of the controlling company. 1577
2347	2347	Section 23. Effective upon this act becoming a law, 1578
2348	2348	subsection (2) of section 628.717, Florida Statutes, is amended 1579
2349	2349	to read: 1580
2350	2350	628.717 Filing of articles of incorporation. — 1581
2351	2351	(2) The office shall promptly examine the articles of 1582
2352	2352	incorporation,; and, if it finds that the articles of 1583
2353	2353	incorporation comply with law, the office shall endorse its 1584
2354	2354	approval on the certificate of amendment upon each of the 1585
2355	2355	originals, place one on file in its office, and return the 1586
2356	2356	remaining sets to the incorporators . The incorporators shall 1587
2357	2357	promptly file such endorsed articles of incorporation with the 1588
2358	2358	Department of State. The articles of incorporation shall be 1589
2359	2359	effective when filed with and approved by the Department of 1590
2360	2360	State. 1591
2361	2361	Section 24. Effective upon this act becoming a law, 1592
2362	2362	subsection (2) of section 628.719, Florida Statutes, is amended 1593
2363	2363	to read: 1594
2364	2364	628.719 Amendment of articles of incorporation. — 1595
2365	2365	(2)(a) Upon adoption of an amendment, the mutual insurance 1596
2366	2366	holding company shall make under its corporate seal a 1597
2367	2367	certificate thereof, setting forth the amendment and the date 1598
2368	2368	and manner of the adoption thereof, which certificate shall be 1599
2369	2369	executed by the mutual insurance holding company's president or 1600
2370	2370
2371	2371	HB 1429 2025
2372	2372
2373	2373
2374	2374
2375	2375	CODING: Words stricken are deletions; words underlined are additions.
2376	2376	hb1429-00
2377	2377	Page 65 of 168
2378	2378	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
2379	2379
2380	2380
2381	2381
2382	2382	vice president and secretary or assistant secretary and 1601
2383	2383	acknowledged before an officer authorized to take 1602
2384	2384	acknowledgments. The mutual insurance holding company shall 1603
2385	2385	deliver the originals of the certificate to the office. 1604
2386	2386	(b) The office shall promptly examine the certificate of 1605
2387	2387	amendment, and, if the office finds that the certificate and the 1606
2388	2388	amendment comply with law, the office shall endorse its approval 1607
2389	2389	on the certificate of amendment upon each of the origi nals, 1608
2390	2390	place one on file in its office, and return the remaining sets 1609
2391	2391	to the mutual insurance holding company . The mutual insurance 1610
2392	2392	holding company shall promptly file such endorsed certificate 1611
2393	2393	certificates of amendment with the Department of State. The 1612
2394	2394	amendment shall be effective when filed with and approved by the 1613
2395	2395	Department of State. 1614
2396	2396	Section 25. Effective upon this act becoming a law, 1615
2397	2397	subsection (4) of section 628.910, Florida Statutes, is amended 1616
2398	2398	to read: 1617
2399	2399	628.910 Incorporation options and requirem ents.— 1618
2400	2400	(4) In the case of a captive insurance company formed as a 1619
2401	2401	corporation or a nonprofit corporation, before the articles of 1620
2402	2402	incorporation are transmitted to the Secretary of State, the 1621
2403	2403	incorporators shall file the articles of incorporation in 1622
2404	2404	triplicate with the office. The office shall promptly examine 1623
2405	2405	the articles of incorporation. If it finds that the articles of 1624
2406	2406	incorporation conform to law, it shall endorse its approval on 1625
2407	2407
2408	2408	HB 1429 2025
2409	2409
2410	2410
2411	2411
2412	2412	CODING: Words stricken are deletions; words underlined are additions.
2413	2413	hb1429-00
2414	2414	Page 66 of 168
2415	2415	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
2416	2416
2417	2417
2418	2418
2419	2419	each of the triplicate originals of the articles of 1626
2420	2420	incorporation, retain one copy for its files, and return the 1627
2421	2421	articles of incorporation remaining copies to the incorporators 1628
2422	2422	for filing with the Department of State. 1629
2423	2423	Section 26. Subsection (5) of section 629.011, Florida 1630
2424	2424	Statutes, is amended, and subsections (6), (7), and (8) are 1631
2425	2425	added to that section, to read: 1632
2426	2426	629.011 Definitions. —As used in this part, the term: 1633
2427	2427	(5) "Reciprocal insurer" means an unincorporated 1634
2428	2428	aggregation of subscribers operating individually and 1635
2429	2429	collectively through an attorney in fact to provide reci procal 1636
2430	2430	insurance among themselves. 1637
2431	2431	(a) An assessable reciprocal insurer is a reciprocal 1638
2432	2432	insurer that is able to levy an assessment on its subscribers to 1639
2433	2433	make up any shortfall in capital and surplus to cover claims and 1640
2434	2434	expenses as specified in s. 629.231. 1641
2435	2435	(b) A nonassessable reciprocal insurer is a reciprocal 1642
2436	2436	insurer authorized under s. 629.091(3) or s. 629.291(5) to issue 1643
2437	2437	policies where there is no recourse against subscribers for any 1644
2438	2438	shortfall in capital and surplus to cover claims and expenses. 1645
2439	2439	(6) "Subscriber contribution" means any transfer of money 1646
2440	2440	by a subscriber of a reciprocal insurer to the reciprocal 1647
2441	2441	insurer in excess of the premium approved by the office, when 1648
2442	2442	such money is counted as surplus for the reciprocal insurer or 1649
2443	2443	used to pay surplus notes. 1650
2444	2444
2445	2445	HB 1429 2025
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2447	2447
2448	2448
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2452	2452	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
2453	2453
2454	2454
2455	2455
2456	2456	(7) "Subscriber savings account" means any account in 1651
2457	2457	which a reciprocal insurer allocates money to be held in whole 1652
2458	2458	or in part for the benefit of an individual subscriber, other 1653
2459	2459	than accounts holding money for the payment of a specific claim 1654
2460	2460	by or settlement of a specific legal dispute with that 1655
2461	2461	individual subscriber. 1656
2462	2462	(8) "Subscribers' advisory committee" means the governing 1657
2463	2463	committee of a domestic reciprocal insurer which is formed in 1658
2464	2464	compliance with s. 629.201 and represents the interests of the 1659
2465	2465	subscribers. 1660
2466	2466	Section 27. Section 629.071, Florida Statutes, is amended 1661
2467	2467	to read: 1662
2468	2468	629.071 Surplus funds required. — 1663
2469	2469	(1) An assessable A domestic reciprocal insurer hereunder 1664
2470	2470	formed, if it has otherwise complied with the applicable 1665
2471	2471	provisions of this code, may be authorized to transact insurance 1666
2472	2472	if it has and thereafter maintains surplus funds of not less 1667
2473	2473	than $3 million $250,000. 1668
2474	2474	(2) A nonassessable reciprocal insurer, if it has 1669
2475	2475	otherwise complied with the applicable provisions of this code, 1670
2476	2476	may be authorized to transact insurance if it has and thereafter 1671
2477	2477	maintains a surplus as to policyholders which is equal to that 1672
2478	2478	required under s. 624.408 for a domestic stock insurer 1673
2479	2479	authorized to transact like kinds of insurance In addition to 1674
2480	2480	the surplus required to be maintained under subsection (1), the 1675
2481	2481
2482	2482	HB 1429 2025
2483	2483
2484	2484
2485	2485
2486	2486	CODING: Words stricken are deletions; words underlined are additions.
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2489	2489	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
2490	2490
2491	2491
2492	2492
2493	2493	insurer shall have, when first so authorized, an expendable 1676
2494	2494	surplus of not less than $750,000 . 1677
2495	2495	Section 28. Effective upon this act becoming a law, 1678
2496	2496	subsection (3) of section 629.081, Florida Statutes, is amended 1679
2497	2497	to read: 1680
2498	2498	629.081 Organization of reciprocal insurer. — 1681
2499	2499	(3) The filing must be accompanied by the application fee 1682
2500	2500	required by s. 624.501(1)(a) . 1683
2501	2501	Section 29. Section 629.082, Florida Statutes, is created 1684
2502	2502	to read: 1685
2503	2503	629.082 Reciprocal affiliates.—The attorney in fact of a 1686
2504	2504	reciprocal is an affiliate of the reciprocal for purposes of s. 1687
2505	2505	624.10. 1688
2506	2506	Section 30. Section 629.1015, Florida Statutes, is created 1689
2507	2507	to read: 1690
2508	2508	629.1015 Affiliate fees. — 1691
2509	2509	(1) Each reciprocal insurer doing business i n this state 1692
2510	2510	which pays a fee, commission, or other financial consideration 1693
2511	2511	or payment to any affiliate directly or indirectly must provide 1694
2512	2512	to the office documentation supporting that such fee, 1695
2513	2513	commission, or other financial consideration or payment to any 1696
2514	2514	affiliate is fair and reasonable for each service being provided 1697
2515	2515	by contract. In determining whether the fee, commission, or 1698
2516	2516	other financial consideration or payment is fair and reasonable, 1699
2517	2517	the office must consider the following: 1700
2518	2518
2519	2519	HB 1429 2025
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2521	2521
2522	2522
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2526	2526	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
2527	2527
2528	2528
2529	2529
2530	2530	(a) The actual cost of each service provided by an 1701
2531	2531	affiliate; 1702
2532	2532	(b) The relative financial condition of the reciprocal 1703
2533	2533	insurer and of the attorney in fact; 1704
2534	2534	(c) The level of debt and how that debt is serviced; 1705
2535	2535	(d) The amount of dividends paid by the attorney in fact 1706
2536	2536	and its affiliates and for what purpose; 1707
2537	2537	(e) Whether the terms of the written contract benefit the 1708
2538	2538	reciprocal insurer and are in the best interest of the 1709
2539	2539	subscribers; and 1710
2540	2540	(f) Any other such information as the office reasonably 1711
2541	2541	requires in making this determina tion. 1712
2542	2542	(2) For each agreement with an affiliate in force on July 1713
2543	2543	1, 2025, each domestic reciprocal insurer shall provide to the 1714
2544	2544	office no later than October 1, 2025, the cost incurred by the 1715
2545	2545	affiliate to provide each service, the amount charged to the 1716
2546	2546	domestic reciprocal insurer for each service, and the dollar 1717
2547	2547	amount of fees forgiven, waived, or reimbursed by the affiliate 1718
2548	2548	for the 2 most recent preceding years. If the total dollar 1719
2549	2549	amount charged to the domestic reciprocal insurer was greater 1720
2550	2550	than the total cost to provide services for either year, the 1721
2551	2551	domestic reciprocal insurer must explain how it determined the 1722
2552	2552	fee was fair and reasonable. For any proposed contract with an 1723
2553	2553	affiliate effective after July 1, 2025, the domestic reciprocal 1724
2554	2554	insurer must provide documentation to support that the fee, 1725
2555	2555
2556	2556	HB 1429 2025
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2558	2558
2559	2559
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2563	2563	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
2564	2564
2565	2565
2566	2566
2567	2567	commission, or other financial consideration or payment to the 1726
2568	2568	affiliate is fair and reasonable. 1727
2569	2569	Section 31. Section 629.121, Florida Statutes, is amended 1728
2570	2570	to read: 1729
2571	2571	629.121 Attorney in fact Attorney's bond.— 1730
2572	2572	(1) Concurrently with the filing of the declaration 1731
2573	2573	provided for in s. 629.081, the attorney in fact of a domestic 1732
2574	2574	reciprocal insurer shall file with the office a bond in favor of 1733
2575	2575	this state for the benefit of all persons damaged as a result of 1734
2576	2576	breach by the attorney in fact of the conditions of his or her 1735
2577	2577	bond as set forth in subsection (2). The bond shall be executed 1736
2578	2578	by the attorney in fact and by an authorized corporate surety 1737
2579	2579	and shall be subject to the approval of the office. 1738
2580	2580	(2) The bond shall be i n the sum of $300,000 $100,000, 1739
2581	2581	aggregate in form, the bond conditioned that the attorney in 1740
2582	2582	fact will faithfully account for all moneys and other property 1741
2583	2583	of the insurer coming into his or her hands, and that he or she 1742
2584	2584	will not withdraw or appropriate to his or her own use from the 1743
2585	2585	funds of the insurer any moneys or property to which he or she 1744
2586	2586	is not entitled under the power of attorney. 1745
2587	2587	(3) The bond shall provide that it is not subject to 1746
2588	2588	cancellation unless 30 days' advance notice in writing of 1747
2589	2589	cancellation is given both the attorney in fact and the office. 1748
2590	2590	Section 32. Section 629.162, Florida Statutes, is created 1749
2591	2591	to read: 1750
2592	2592
2593	2593	HB 1429 2025
2594	2594
2595	2595
2596	2596
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2600	2600	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
2601	2601
2602	2602
2603	2603
2604	2604	629.162 Subscriber contributions. — 1751
2605	2605	(1) Reciprocal insurers may, subject to prior approval by 1752
2606	2606	the office, require contributio ns from subscribers in addition 1753
2607	2607	to premiums approved by the office. 1754
2608	2608	(2) A reciprocal insurer shall clearly disclose required 1755
2609	2609	subscriber contributions on the declarations page of any policy 1756
2610	2610	issued by the reciprocal insurer, separate from any cost 1757
2611	2611	associated with the premium. 1758
2612	2612	(3) Reciprocal insurers must provide subscribers an annual 1759
2613	2613	report detailing how each dollar of subscriber contributions was 1760
2614	2614	allocated or spent. 1761
2615	2615	Section 33. Section 629.163, Florida Statutes, is created 1762
2616	2616	to read: 1763
2617	2617	629.163 Subscriber savings accounts. — 1764
2618	2618	(1) Reciprocal insurers may establish subscriber savings 1765
2619	2619	accounts. 1766
2620	2620	(2) Moneys placed in subscriber savings accounts are not 1767
2621	2621	considered distributions under s. 629.164. 1768
2622	2622	(3) Subscriber savings accounts are subject to the 1769
2623	2623	following requirements: 1770
2624	2624	(a) Reciprocal insurers must inform each subscriber, in 1771
2625	2625	writing, of the limitations and restrictions imposed upon the 1772
2626	2626	use or possession of moneys held in subscriber savings accounts. 1773
2627	2627	(b) Reciprocal insurers must inform each subscriber, in 1774
2628	2628	writing, of the procedures used to distribute moneys to 1775
2629	2629
2630	2630	HB 1429 2025
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2632	2632
2633	2633
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2637	2637	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
2638	2638
2639	2639
2640	2640
2641	2641	subscriber savings accounts and any calculations used to 1776
2642	2642	determine the amount of moneys to be distributed to subscriber 1777
2643	2643	savings accounts. 1778
2644	2644	(c) Advertisements marketing the benefits of subscriber 1779
2645	2645	savings accounts must note the limitations and restrictions 1780
2646	2646	imposed upon the use or possession of moneys held in subscriber 1781
2647	2647	savings accounts. 1782
2648	2648	(d) Upon cancellation or nonrenewal of a subscriber's 1783
2649	2649	policy, the subscriber is entitled to all moneys held in the 1784
2650	2650	subscriber's savings account, except when such moneys are 1785
2651	2651	otherwise allocated by law or contract, or when such 1786
2652	2652	distribution is prohibited by order of the office. 1787
2653	2653	Section 34. Section 629.164, Florida Statutes, is created 1788
2654	2654	to read: 1789
2655	2655	629.164 Subscriber di stributions.— 1790
2656	2656	(1) Reciprocal insurers may make distributions to 1791
2657	2657	subscribers from their subscriber savings accounts. 1792
2658	2658	(2) The subscribers' advisory committee shall have the 1793
2659	2659	sole authority to authorize distributions, subject to prior 1794
2660	2660	written approval by the office. 1795
2661	2661	(3) Any reciprocal insurer that otherwise authorizes 1796
2662	2662	distributions but prohibits subscribers from receiving 1797
2663	2663	distributions for a specified period of time, including after 1798
2664	2664	initial subscription, must renew the subscriber's policy for 1799
2665	2665	that period of time plus 1 additional policy year. This 1800
2666	2666
2667	2667	HB 1429 2025
2668	2668
2669	2669
2670	2670
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2674	2674	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
2675	2675
2676	2676
2677	2677
2678	2678	subsection does not prohibit the cancellation or nonrenewal of a 1801
2679	2679	policy pursuant to s. 624.4133 or by order of the office. 1802
2680	2680	(4) A reciprocal insurer may return to its subscribers any 1803
2681	2681	unused premiums, savings, or credits accruing to their accounts. 1804
2682	2682	Such distribution may not unfairly discriminate between classes 1805
2683	2683	of risks or policies, or between subscribers, but may vary as to 1806
2684	2684	classes of subscribers based on the experience of the classes. 1807
2685	2685	(5) In addition to the option provided in subsection (4), 1808
2686	2686	a domestic reciprocal insurer may, upon the prior written 1809
2687	2687	approval of the office, pay to its subscribers a portion of 1810
2688	2688	unassigned funds of up to 10 percent of surplus, with 1811
2689	2689	distribution limited to 50 percent of net income from the 1812
2690	2690	previous calendar year. Such distribution may not unfairly 1813
2691	2691	discriminate between classes of risks or policies, or between 1814
2692	2692	subscribers, but may vary as to classes of subscribers based on 1815
2693	2693	the experience of the classes. 1816
2694	2694	Section 35. Section 629.171 , Florida Statutes, is amended 1817
2695	2695	to read: 1818
2696	2696	629.171 Annual statement. — 1819
2697	2697	(1) The subscribers' advisory committee shall procure an 1820
2698	2698	audited annual statement of the accounts and records of the 1821
2699	2699	insurer and the attorney in fact. The statement of the insurer 1822
2700	2700	must be prepared by an independent auditor at the expense of the 1823
2701	2701	reciprocal insurer and must be available for inspection by any 1824
2702	2702	subscriber. The statement of the attorney in fact must be 1825
2703	2703
2704	2704	HB 1429 2025
2705	2705
2706	2706
2707	2707
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2711	2711	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
2712	2712
2713	2713
2714	2714
2715	2715	prepared by an independent auditor at the expense of the 1826
2716	2716	attorney in fact. 1827
2717	2717	(2)(1) The annual statement filing of a reciprocal insurer 1828
2718	2718	must shall be submitted made and filed by its attorney in fact. 1829
2719	2719	(3)(2) The audited statement of the attorney in fact must 1830
2720	2720	shall be submitted with the annual statement filing of the 1831
2721	2721	reciprocal insurer, as required under s. 624.424, and 1832
2722	2722	supplemented by such information as may be required by the 1833
2723	2723	office relative to the affairs and transactions of the attorney 1834
2724	2724	in fact relating insofar as they relate to the reciprocal 1835
2725	2725	insurer. 1836
2726	2726	Section 36. Subsecti on (1) of section 629.181, Florida 1837
2727	2727	Statutes, is amended to read: 1838
2728	2728	629.181 Financial condition; method of determining. —In 1839
2729	2729	determining the financial condition of a reciprocal insurer, the 1840
2730	2730	office shall apply the following rules: 1841
2731	2731	(1) Subscriber contribution s are The surplus deposits of 1842
2732	2732	subscribers shall be allowed as assets, except that any premium 1843
2733	2733	deposits delinquent for 90 days must shall first be charged 1844
2734	2734	against such subscriber contributions. Subscriber contributions 1845
2735	2735	may not exceed 2 percent of each indiv idual subscribers' policy 1846
2736	2736	premium for a nonassessable reciprocal insurer and 10 percent of 1847
2737	2737	each individual subscribers' policy premium for an assessable 1848
2738	2738	reciprocal insurer surplus deposit. 1849
2739	2739	Section 37. Section 629.201, Florida Statutes, is amended 1850
2740	2740
2741	2741	HB 1429 2025
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2743	2743
2744	2744
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2748	2748	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
2749	2749
2750	2750
2751	2751
2752	2752	to read: 1851
2753	2753	629.201 Subscribers' advisory committee. —Each domestic 1852
2754	2754	reciprocal insurer must have a subscribers' advisory committee 1853
2755	2755	representing the interests of the subscribers. 1854
2756	2756	(1) The subscribers' advisory committee of a domestic 1855
2757	2757	reciprocal insurer exercising the subscribers' rights must shall 1856
2758	2758	be formed in compliance with this section and selected under 1857
2759	2759	such rules as the subscribers adopt. Such rules, along with any 1858
2760	2760	amendments, must be approved by the office before becoming 1859
2761	2761	effective. 1860
2762	2762	(2) Not less than two -thirds of such committee shall be 1861
2763	2763	subscribers other than the attorney, or any person employed by, 1862
2764	2764	representing, or having a financial interest in the attorney. 1863
2765	2765	(2)(3) The subscribers' advisory committee shall perform 1864
2766	2766	all of the following duties : 1865
2767	2767	(a) Supervise the finances of the insurer .; 1866
2768	2768	(b) Supervise the insurer's operations to such extent as 1867
2769	2769	to ensure assure conformity with the subscribers' agreement , and 1868
2770	2770	power of attorney, and other governing documents. ; 1869
2771	2771	(c) Hire independent auditors, counsel, and other experts 1870
2772	2772	at the expense of the insurer as necessary to fulfill the 1871
2773	2773	committee's duties. Procure the audit of the accounts and 1872
2774	2774	records of the insurer and of the attorney at the expense of the 1873
2775	2775	insurer; and 1874
2776	2776	(d) Exercise any Have such additional powers and functions 1875
2777	2777
2778	2778	HB 1429 2025
2779	2779
2780	2780
2781	2781
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2785	2785	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
2786	2786
2787	2787
2788	2788
2789	2789	as may be conferred by the subscribers' agreement. 1876
2790	2790	(3) The initial subscribers' advisory committee must be 1877
2791	2791	appointed by the original subscribers or the attorney in fact. 1878
2792	2792	Within 6 months after the reciprocal insurer is authorized to 1879
2793	2793	transact insurance, at least two -thirds of the committee members 1880
2794	2794	must be elected as provided for in subsections (4) and (5). 1881
2795	2795	(4) The subscribers' advisory committee must consist of 1882
2796	2796	subscribers of the reciprocal insurer. At least two -thirds of 1883
2797	2797	the subscribers' advisory committee must consist of subscribers 1884
2798	2798	who are independent of, not employed by, not representing, not 1885
2799	2799	selected by, and without any financial interest in the attorney 1886
2800	2800	in fact. The independent subscribers must be elected by the 1887
2801	2801	subscribers of the reciprocal insurer. 1888
2802	2802	(5) Any rules governing the election of subscribers to the 1889
2803	2803	subscribers' advisory committee require all of the following: 1890
2804	2804	(a) An electorate composed exclusively of all subscribers 1891
2805	2805	of the reciprocal insurer. 1892
2806	2806	(b) Terms of not more than 5 years. 1893
2807	2807	(c) A process that allows subscribers to nominate other 1894
2808	2808	subscribers for election to the subscribers' advisory committee. 1895
2809	2809	(6) If a reciprocal insurer has more than 50 subscribers, 1896
2810	2810	the attorney in fact must provide a platform by which 1897
2811	2811	subscribers can communicate with each other regarding the 1898
2812	2812	subscribers' advisory committee election process. 1899
2813	2813	Section 38. Section 629.271, Florida Statutes, is 1900
2814	2814
2815	2815	HB 1429 2025
2816	2816
2817	2817
2818	2818
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2822	2822	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
2823	2823
2824	2824
2825	2825
2826	2826	repealed. 1901
2827	2827	Section 39. Effective upon this act becoming a law, 1902
2828	2828	subsections (1) and (2) of sectio n 629.291, Florida Statutes, 1903
2829	2829	are amended to read: 1904
2830	2830	629.291 Merger or conversion. — 1905
2831	2831	(1) A reciprocal insurer, upon affirmative vote of not 1906
2832	2832	less than two-thirds of its subscribers who vote on such merger 1907
2833	2833	or conversion pursuant to due notice, and subject to approval by 1908
2834	2834	the office of the terms therefor, may merge with another 1909
2835	2835	reciprocal insurer or be converted to a stock or mutual insurer, 1910
2836	2836	to be thereafter governed by the applicable sections of the 1911
2837	2837	Florida Insurance Code . However, a domestic stock insurer may 1912
2838	2838	not convert to a reciprocal insurer. 1913
2839	2839	(2) A plan to merge a reciprocal insurer with another 1914
2840	2840	reciprocal insurer or for conversion of the reciprocal insurer 1915
2841	2841	to a stock or mutual insurer must be filed with the office o n 1916
2842	2842	forms adopted by the commission office and must contain such 1917
2843	2843	information as the office reasonably requires to evaluate the 1918
2844	2844	transaction. 1919
2845	2845	Section 40. Section 629.301, Florida Statutes, is amended 1920
2846	2846	to read: 1921
2847	2847	629.301 Impaired reciprocal insurers. — 1922
2848	2848	(1) If the assets of a domestic reciprocal insurer are at 1923
2849	2849	any time insufficient to discharge its liabilities, other than 1924
2850	2850	any liability on account of funds contributed by the attorney in 1925
2851	2851
2852	2852	HB 1429 2025
2853	2853
2854	2854
2855	2855
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2859	2859	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
2860	2860
2861	2861
2862	2862
2863	2863	fact or others, and to maintain the required surplus, its 1926
2864	2864	attorney shall forthwith make up the deficiency or levy an 1927
2865	2865	assessment upon the subscribers for the amount needed to make up 1928
2866	2866	the deficiency, but subject to the limitation set forth in the 1929
2867	2867	power of attorney or policy. 1930
2868	2868	(2) If the attorney in fact fails to make up such 1931
2869	2869	deficiency or to make the assessment within 30 days after the 1932
2870	2870	office orders the attorney in fact him or her to do so, or if 1933
2871	2871	the deficiency is not fully made up within 60 days after the 1934
2872	2872	date the assessment was made, the insurer shall be deemed 1935
2873	2873	insolvent and shall be proceeded against in the same manner as 1936
2874	2874	any other insurer under chapter 631 and the insurance as 1937
2875	2875	authorized by this code. 1938
2876	2876	(3) If liquidation of a reciprocal such an insurer is 1939
2877	2877	ordered, the receiver shall levy an assessment shall be levied 1940
2878	2878	upon the subscribers an assessment for such an amount as the 1941
2879	2879	receiver determines to be necessary to discharge all liabilities 1942
2880	2880	of the insurer. The liabilities must be , subject to limits as 1943
2881	2881	provided by this chapter, as the office determines to be 1944
2882	2882	necessary to dischar ge all liabilities of the insurer, exclusive 1945
2883	2883	of any funds contributed by the attorney in fact or other 1946
2884	2884	persons, but inclusive of including the reasonable cost of the 1947
2885	2885	liquidation. The assessment is subject to any limits set forth 1948
2886	2886	in the power of attorney, the policy, or this chapter. 1949
2887	2887	Section 41. Section 629.401, Florida Statutes, is 1950
2888	2888
2889	2889	HB 1429 2025
2890	2890
2891	2891
2892	2892
2893	2893	CODING: Words stricken are deletions; words underlined are additions.
2894	2894	hb1429-00
2895	2895	Page 79 of 168
2896	2896	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
2897	2897
2898	2898
2899	2899
2900	2900	repealed. 1951
2901	2901	Section 42. Section 629.520, Florida Statutes, is 1952
2902	2902	repealed. 1953
2903	2903	Section 43. Section 629.56, Florida Statutes, is created 1954
2904	2904	to read: 1955
2905	2905	629.56 Unearned premium res erves.—A reciprocal insurer 1956
2906	2906	must maintain an unearned premium reserve at all times and as 1957
2907	2907	required under s. 625.051. 1958
2908	2908	Section 44. Paragraph (c) of subsection (13) of section 1959
2909	2909	634.401, Florida Statutes, is amended to read: 1960
2910	2910	634.401 Definitions. —As used in this part, the term: 1961
2911	2911	(13) "Service warranty" means any warranty, guaranty, 1962
2912	2912	extended warranty or extended guaranty, maintenance service 1963
2913	2913	contract equal to or greater than 1 year in length or which does 1964
2914	2914	not meet the exemption in paragraph (a), contract ag reement, or 1965
2915	2915	other written promise for a specific duration to perform the 1966
2916	2916	repair, replacement, or maintenance of a consumer product, or 1967
2917	2917	for indemnification for repair, replacement, or maintenance, for 1968
2918	2918	operational or structural failure due to a defect in mat erials 1969
2919	2919	or workmanship, normal wear and tear, power surge, or accidental 1970
2920	2920	damage from handling in return for the payment of a segregated 1971
2921	2921	charge by the consumer; however: 1972
2922	2922	(c) All contracts that include coverage for accidental 1973
2923	2923	damage from handling must be co vered by the contractual 1974
2924	2924	liability policy referred to in s. 634.406(3) , unless issued by 1975
2925	2925
2926	2926	HB 1429 2025
2927	2927
2928	2928
2929	2929
2930	2930	CODING: Words stricken are deletions; words underlined are additions.
2931	2931	hb1429-00
2932	2932	Page 80 of 168
2933	2933	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
2934	2934
2935	2935
2936	2936
2937	2937	an association not required to establish an unearned premium 1976
2938	2938	reserve or maintain contractual liability insurance under s. 1977
2939	2939	634.406(7). 1978
2940	2940	Section 45. Section 641.2012, Florida Statutes, is created 1979
2941	2941	to read: 1980
2942	2942	641.2012 Service of process. —Sections 624.422 and 624.423 1981
2943	2943	apply to health maintenance organizations. 1982
2944	2944	Section 46. Subsections (1) and (3), paragraph (a) of 1983
2945	2945	subsection (5), and subsection (6) of section 641.26, Fl orida 1984
2946	2946	Statutes, are amended to read: 1985
2947	2947	641.26 Annual and quarterly reports. — 1986
2948	2948	(1) Every health maintenance organization shall file an 1987
2949	2949	annual statement covering the preceding calendar year on or 1988
2950	2950	before March 1, and quarterly statements covering the periods 1989
2951	2951	ending on March 31, June 30, and September 30 within 45 days 1990
2952	2952	after each such date , annually within 3 months after the end of 1991
2953	2953	its fiscal year, or within an extension of time therefor as the 1992
2954	2954	office, for good cause, may grant, in a form prescribed by the 1993
2955	2955	commission, file a report with the office , verified by the oath 1994
2956	2956	of two officers of the organization or, if not a corporation, of 1995
2957	2957	two persons who are principal managing directors of the affairs 1996
2958	2958	of the organization, properly notarized, showing its condition 1997
2959	2959	on the last day of the immediately preceding reporting period. 1998
2960	2960	Such report shall include: 1999
2961	2961	(a) A financial statement of the health maintenance 2000
2962	2962
2963	2963	HB 1429 2025
2964	2964
2965	2965
2966	2966
2967	2967	CODING: Words stricken are deletions; words underlined are additions.
2968	2968	hb1429-00
2969	2969	Page 81 of 168
2970	2970	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
2971	2971
2972	2972
2973	2973
2974	2974	organization filed by electronic means in a computer -readable 2001
2975	2975	form using a format acceptable to the office. 2002
2976	2976	(b) A financial statement of the health maintenance 2003
2977	2977	organization filed on forms acceptable to the office. 2004
2978	2978	(c) An audited financial statement of the health 2005
2979	2979	maintenance organization, including its balance sheet and a 2006
2980	2980	statement of operations for the preceding ye ar certified by an 2007
2981	2981	independent certified public accountant, prepared in accordance 2008
2982	2982	with statutory accounting principles. 2009
2983	2983	(d) The number of health maintenance contracts issued and 2010
2984	2984	outstanding and the number of health maintenance contracts 2011
2985	2985	terminated. 2012
2986	2986	(e) The number and amount of damage claims for medical 2013
2987	2987	injury initiated against the health maintenance organization and 2014
2988	2988	any of the providers engaged by it during the reporting year, 2015
2989	2989	broken down into claims with and without formal legal process, 2016
2990	2990	and the disposition, if any, of each such claim. 2017
2991	2991	(f) An actuarial certification that: 2018
2992	2992	1. The health maintenance organization is actuarially 2019
2993	2993	sound, which certification shall consider the rates, benefits, 2020
2994	2994	and expenses of, and any other funds available for the payment 2021
2995	2995	of obligations of, the organization. 2022
2996	2996	2. The rates being charged or to be charged are 2023
2997	2997	actuarially adequate to the end of the period for which rates 2024
2998	2998	have been guaranteed. 2025
2999	2999
3000	3000	HB 1429 2025
3001	3001
3002	3002
3003	3003
3004	3004	CODING: Words stricken are deletions; words underlined are additions.
3005	3005	hb1429-00
3006	3006	Page 82 of 168
3007	3007	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
3008	3008
3009	3009
3010	3010
3011	3011	3. Incurred but not reported claims and claims reported 2026
3012	3012	but not fully paid have been adequately provided for. 2027
3013	3013	4. The health maintenance organization has adequately 2028
3014	3014	provided for all obligations required by s. 641.35(3)(a). 2029
3015	3015	(g) A report prepared by the certified public accountant 2030
3016	3016	and filed with the office describing material weaknes ses in the 2031
3017	3017	health maintenance organization's internal control structure as 2032
3018	3018	noted by the certified public accountant during the audit. The 2033
3019	3019	report must be filed with the annual audited financial report as 2034
3020	3020	required in paragraph (c). The health maintenance org anization 2035
3021	3021	shall provide a description of remedial actions taken or 2036
3022	3022	proposed to correct material weaknesses, if the actions are not 2037
3023	3023	described in the independent certified public accountant's 2038
3024	3024	report. 2039
3025	3025	(h) Such other information relating to the performance o f 2040
3026	3026	health maintenance organizations as is required by the 2041
3027	3027	commission or office. 2042
3028	3028	(3) Every health maintenance organization shall file 2043
3029	3029	quarterly, for the first three calendar quarters of each year, 2044
3030	3030	an unaudited financial statement of the organization as 2045
3031	3031	described in paragraphs (1)(a) and (b). The statement for the 2046
3032	3032	quarter ending March 31 shall be filed on or before May 15, the 2047
3033	3033	statement for the quarter ending June 30 shall be filed on or 2048
3034	3034	before August 15, and the statement for the quarter ending 2049
3035	3035	September 30 shall be filed on or before November 15. The 2050
3036	3036
3037	3037	HB 1429 2025
3038	3038
3039	3039
3040	3040
3041	3041	CODING: Words stricken are deletions; words underlined are additions.
3042	3042	hb1429-00
3043	3043	Page 83 of 168
3044	3044	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
3045	3045
3046	3046
3047	3047
3048	3048	quarterly report shall be verified by the oath of two officers 2051
3049	3049	of the organization, properly notarized. 2052
3050	3050	(5) Each authorized health maintenance organization shall 2053
3051	3051	retain an independent certified public account ant, referred to 2054
3052	3052	in this section as "CPA," who agrees by written contract with 2055
3053	3053	the health maintenance organization to comply with the 2056
3054	3054	provisions of this part. 2057
3055	3055	(a) The CPA shall provide to the HMO audited financial 2058
3056	3056	statements consistent with this part and s. 624.424. 2059
3057	3057	(6) To facilitate uniformity in financial statements and 2060
3058	3058	to facilitate office analysis, the commission may by rule adopt 2061
3059	3059	the form for financial statements of a health maintenance 2062
3060	3060	organization, requiring the financial statement to comply with 2063
3061	3061	s. 624.424 including supplements as approved by the National 2064
3062	3062	Association of Insurance Commissioners in 1995, and may adopt 2065
3063	3063	subsequent amendments thereto if the methodology remains 2066
3064	3064	substantially consistent , and may by rule require each health 2067
3065	3065	maintenance organization to submit to the office all or part of 2068
3066	3066	the information contained in the annual statement in a computer -2069
3067	3067	readable form compatible with the electronic data processing 2070
3068	3068	system specified by the office. 2071
3069	3069	Section 47. Section 641.283, Florida Statute s, is created 2072
3070	3070	to read: 2073
3071	3071	641.283 Administrative supervision and hazardous insurer 2074
3072	3072	conditions.—Sections 624.80-624.87 apply to health maintenance 2075
3073	3073
3074	3074	HB 1429 2025
3075	3075
3076	3076
3077	3077
3078	3078	CODING: Words stricken are deletions; words underlined are additions.
3079	3079	hb1429-00
3080	3080	Page 84 of 168
3081	3081	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
3082	3082
3083	3083
3084	3084
3085	3085	organizations. 2076
3086	3086	Section 48. Subsections (5) through (15) and (16) through 2077
3087	3087	(29) of section 651.011, Florida S tatutes, are renumbered as 2078
3088	3088	subsections (7) through (17) and (19) through (32), 2079
3089	3089	respectively, present subsections (7), (8), (19), and (26) are 2080
3090	3090	amended, and new subsections (5), (6), and (18) are added to 2081
3091	3091	that section, to read: 2082
3092	3092	651.011 Definitions. —As used in this chapter, the term: 2083
3093	3093	(5) "Affiliate" means an entity that exercises control 2084
3094	3094	over or is directly or indirectly controlled by the insurer 2085
3095	3095	provider through: 2086
3096	3096	(a) Equity ownership of voting securities; 2087
3097	3097	(b) Common managerial control; or 2088
3098	3098	(c) Collusive participation by the management of the 2089
3099	3099	insurer and affiliate in the management of the insurer or the 2090
3100	3100	affiliate. 2091
3101	3101	(6) "Affiliated person" of another person means: 2092
3102	3102	(a) The spouse of the other person; 2093
3103	3103	(b) The parents of the other person and their lin eal 2094
3104	3104	descendants, or the parents of the other person's spouse and 2095
3105	3105	their lineal descendants; 2096
3106	3106	(c) A person who directly or indirectly owns or controls, 2097
3107	3107	or holds with the power to vote, 10 percent or more of the 2098
3108	3108	outstanding voting securities of the other per son; 2099
3109	3109	(d) A person 10 percent or more of whose outstanding 2100
3110	3110
3111	3111	HB 1429 2025
3112	3112
3113	3113
3114	3114
3115	3115	CODING: Words stricken are deletions; words underlined are additions.
3116	3116	hb1429-00
3117	3117	Page 85 of 168
3118	3118	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
3119	3119
3120	3120
3121	3121
3122	3122	voting securities are directly or indirectly owned or 2101
3123	3123	controlled, or held with power to vote, by the other person; 2102
3124	3124	(e) A person or group of persons who directly or 2103
3125	3125	indirectly control, are contro lled by, or are under common 2104
3126	3126	control with the other person; 2105
3127	3127	(f) An officer, director, partner, copartner, or employee 2106
3128	3128	of the other person; 2107
3129	3129	(g) If the other person is an investment company, an 2108
3130	3130	investment adviser of such company, or a member of an adviso ry 2109
3131	3131	board of such company; 2110
3132	3132	(h) If the other person is an unincorporated investment 2111
3133	3133	company not having a board of directors, the depositor of such 2112
3134	3134	company; or 2113
3135	3135	(i) A person who has entered into a written or unwritten 2114
3136	3136	agreement to act in concert with the o ther person in acquiring 2115
3137	3137	or limiting the disposition of securities of a domestic stock 2116
3138	3138	insurer provider or controlling company. 2117
3139	3139	(9)(7) "Continuing care at-home" means, pursuant to a 2118
3140	3140	contract other than a contract described in subsection (7) (5), 2119
3141	3141	furnishing to a resident who resides outside the facility the 2120
3142	3142	right to future access to shelter and nursing care or personal 2121
3143	3143	services, whether such services are provided in the facility or 2122
3144	3144	in another setting designated in the contract, by an individual 2123
3145	3145	not related by consanguinity or affinity to the resident, upon 2124
3146	3146	payment of an entrance fee. 2125
3147	3147
3148	3148	HB 1429 2025
3149	3149
3150	3150
3151	3151
3152	3152	CODING: Words stricken are deletions; words underlined are additions.
3153	3153	hb1429-00
3154	3154	Page 86 of 168
3155	3155	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
3156	3156
3157	3157
3158	3158
3159	3159	(10)(8) "Control," "controlling," "controlled by," "under 2126
3160	3160	common control with," or "controlling company" means any 2127
3161	3161	corporation, trust, or association that directly or indirectly 2128
3162	3162	owns 10 25 percent or more of either the following : 2129
3163	3163	(a) The direct or indirect possession of the power to 2130
3164	3164	direct or cause the direction of the management and policies of 2131
3165	3165	a person, whether through the ownership of voting securities, by 2132
3166	3166	contract other than a commercial contract for goods or 2133
3167	3167	nonmanagement services, or otherwise. Control is presumed to 2134
3168	3168	exist if a person, directly or indirectly, owns, controls, holds 2135
3169	3169	with the power to vote, or holds proxies representing 10 percent 2136
3170	3170	or more of the voting securities of another person; or 2137
3171	3171	(b) A management company exercising control through a 2138
3172	3172	management agreement whereby the management company is 2139
3173	3173	responsible for the day -to-day business operations of the 2140
3174	3174	provider or the day-to-day decisionmaking on behalf of the 2141
3175	3175	provider. 2142
3176	3176	(a) The voting securities of one or more providers that 2143
3177	3177	are stock corporations; or 2144
3178	3178	(b) The ownership interest of one or more providers that 2145
3179	3179	are not stock corporations. 2146
3180	3180	(18) "Governing body" or "full governing body" means a 2147
3181	3181	board of directors, a management company, a body of a provider, 2148
3182	3182	or an obligated group whose members are elected or appointed to 2149
3183	3183	set strategy, oversee management or operations of a provider, 2150
3184	3184
3185	3185	HB 1429 2025
3186	3186
3187	3187
3188	3188
3189	3189	CODING: Words stricken are deletions; words underlined are additions.
3190	3190	hb1429-00
3191	3191	Page 87 of 168
3192	3192	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
3193	3193
3194	3194
3195	3195
3196	3196	facility, or obligated group, and protect the interests of the 2151
3197	3197	provider, facility, or group. 2152
3198	3198	(22)(19) "Manager," "management," or "management company" 2153
3199	3199	means a person who administers the day -to-day business 2154
3200	3200	operations of a facility for a provider, is part of a committee 2155
3201	3201	that supervises the activities of a business that pro vides 2156
3202	3202	continuing care or a member of the full governing body of a 2157
3203	3203	business that provides continuing care, or is subject to the 2158
3204	3204	policies, directives, and oversight of the provider or governing 2159
3205	3205	body. 2160
3206	3206	(29)(26) "Regulatory action level event" means that any 2161
3207	3207	two of the following have occurred: 2162
3208	3208	(a) The provider's debt service coverage ratio is less 2163
3209	3209	than the greater of the minimum ratio specified in the 2164
3210	3210	provider's bond covenants or lending agreement for long -term 2165
3211	3211	financing or 1.20:1 as of the most recent annual report filed 2166
3212	3212	with the office pursuant to s. 651.026 or s. 651.0261, or, if 2167
3213	3213	the provider does not have a debt service coverage ratio 2168
3214	3214	required by its lending institution, the provider's debt service 2169
3215	3215	coverage ratio is less than 1.20:1 as of the most recent annual 2170
3216	3216	report filed with the office pursuant to s. 651.026 or s. 2171
3217	3217	651.0261. If the provider is a member of an obligated group 2172
3218	3218	having cross-collateralized debt, the obligated group's debt 2173
3219	3219	service coverage ratio must be used as the provider's debt 2174
3220	3220	service coverage ratio. 2175
3221	3221
3222	3222	HB 1429 2025
3223	3223
3224	3224
3225	3225
3226	3226	CODING: Words stricken are deletions; words underlined are additions.
3227	3227	hb1429-00
3228	3228	Page 88 of 168
3229	3229	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
3230	3230
3231	3231
3232	3232
3233	3233	(b) The provider's days cash on hand is less than the 2176
3234	3234	greater of the minimum number of days cash on hand specified in 2177
3235	3235	the provider's bond covenants or lending agreement for long -term 2178
3236	3236	financing or 100 days. If the provider does not have a day s cash 2179
3237	3237	on hand required by its lending institution, the days cash on 2180
3238	3238	hand may not be less than 100 as of the most recent annual 2181
3239	3239	report filed with the office pursuant to s. 651.026 or s. 2182
3240	3240	651.0261. If the provider is a member of an obligated group 2183
3241	3241	having cross-collateralized debt, the days cash on hand of the 2184
3242	3242	obligated group must be used as the provider's days cash on 2185
3243	3243	hand. 2186
3244	3244	(c) The occupancy of the provider's facility is less than 2187
3245	3245	80 percent averaged over the 12 -month period immediately 2188
3246	3246	preceding the annual report filed with the office pursuant to s. 2189
3247	3247	651.026. 2190
3248	3248	Section 49. Section 651.018, Florida Statutes, is amended 2191
3249	3249	to read: 2192
3250	3250	651.018 Administrative supervision. —The office may place a 2193
3251	3251	facility in administrative supervision pursuant to part VI of 2194
3252	3252	chapter 624. If the office finds that any of the following 2195
3253	3253	conditions exist, the office shall place a facility in 2196
3254	3254	administrative supervision until the condition is resolved to 2197
3255	3255	the satisfaction of the office: 2198
3256	3256	(1) The facility is insolvent or impaired. 2199
3257	3257	(2) The facility is at a regulatory action level, pursuant 2200
3258	3258
3259	3259	HB 1429 2025
3260	3260
3261	3261
3262	3262
3263	3263	CODING: Words stricken are deletions; words underlined are additions.
3264	3264	hb1429-00
3265	3265	Page 89 of 168
3266	3266	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
3267	3267
3268	3268
3269	3269
3270	3270	to s. 651.034. 2201
3271	3271	(3) The facility reports a negative debt service reserve. 2202
3272	3272	(4) The facility has failed to file a monthly, quarterly, 2203
3273	3273	or annual financial statement or an audited financial statement 2204
3274	3274	as required by this chapter. 2205
3275	3275	(5) The facility was issued a financial statement with a 2206
3276	3276	going concern issue by an independent certified public 2207
3277	3277	accountant. 2208
3278	3278	(6) The facility is found to be in hazardous financial 2209
3279	3279	condition pursuant to s. 651.113. 2210
3280	3280	(7) The facility has entered into a forbearance agreement 2211
3281	3281	with a lender. 2212
3282	3282	Section 50. Paragraph (a) of subsection (1) of section 2213
3283	3283	651.019, Florida Statutes, is amended to read: 2214
3284	3284	651.019 New financing, additional financing, or 2215
3285	3285	refinancing.— 2216
3286	3286	(1)(a) A provider shall p rovide a written general outline 2217
3287	3287	of the amount and the anticipated terms of any new financing or 2218
3288	3288	refinancing, and the intended use of proceeds, to the office and 2219
3289	3289	the residents' council at least 30 days before the closing date 2220
3290	3290	of the financing or refinancin g transaction. If there is a 2221
3291	3291	material change in the noticed information, a provider shall 2222
3292	3292	provide an updated notice to the office and the residents' 2223
3293	3293	council within 10 business days after the provider becomes aware 2224
3294	3294	of such change. 2225
3295	3295
3296	3296	HB 1429 2025
3297	3297
3298	3298
3299	3299
3300	3300	CODING: Words stricken are deletions; words underlined are additions.
3301	3301	hb1429-00
3302	3302	Page 90 of 168
3303	3303	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
3304	3304
3305	3305
3306	3306
3307	3307	Section 51. Section 65 1.0212, Florida Statutes, is created 2226
3308	3308	to read: 2227
3309	3309	651.0212 General eligibility requirements to operate in 2228
3310	3310	this state.— 2229
3311	3311	(1) The office must deny or revoke a provider's authority 2230
3312	3312	to conduct business relating to continuing care in this state, 2231
3313	3313	including, but not limited to, the authority to enter into 2232
3314	3314	contracts, provide continuing care or continuing care at -home, 2233
3315	3315	or construct facilities for the purpose of providing continuing 2234
3316	3316	care in this state, if the office determines that any of the 2235
3317	3317	following applies to the provider's management, officers, or 2236
3318	3318	directors: 2237
3319	3319	(a) They are incompetent or untrustworthy. 2238
3320	3320	(b) They lack sufficient experience in continuing care 2239
3321	3321	management, posing a risk to contract holders. 2240
3322	3322	(c) They lack the experience, ability, or reputation 2241
3323	3323	necessary to ensure a reasonable likelihood of successful 2242
3324	3324	operation. 2243
3325	3325	(d) They are affiliated, directly or indirectly, with 2244
3326	3326	individuals or entities whose business practices have harmed 2245
3327	3327	residents, stockholders, investors, creditors, or the public 2246
3328	3328	through asset manipulation, fraudulent accounting, or bad faith 2247
3329	3329	actions. 2248
3330	3330	(2) The office must deny or revoke a provider's authority 2249
3331	3331	to conduct business relating to continuing care in this state, 2250
3332	3332
3333	3333	HB 1429 2025
3334	3334
3335	3335
3336	3336
3337	3337	CODING: Words stricken are deletions; words underlined are additions.
3338	3338	hb1429-00
3339	3339	Page 91 of 168
3340	3340	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
3341	3341
3342	3342
3343	3343
3344	3344	including, but not limited to, the authority to enter into 2251
3345	3345	contracts, provide continuing care or continuing care at -home, 2252
3346	3346	or construct facilities for the purpose of providing continuing 2253
3347	3347	care in this state, if the office determines that any general 2254
3348	3348	partner, subscriber, stockholder, or incorporator who exercises 2255
3349	3349	or has the ability to exercise effective control of the 2256
3350	3350	provider, or who influences or has the ability to influence the 2257
3351	3351	provider's business transactions, lacks the financial standing 2258
3352	3352	and business experience necessary for the provider's successful 2259
3353	3353	operation. 2260
3354	3354	(3) The office may deny, suspend, or revoke a provider's 2261
3355	3355	authority to conduct business relating to continuing care in 2262
3356	3356	this state, including, but not limited to, the authority to 2263
3357	3357	enter into contracts, provide continuing care or continuing care 2264
3358	3358	at-home, or construct facilities for the purpose of providing 2265
3359	3359	continuing care, if the office determines that any general 2266
3360	3360	partner, subscriber, stockholder, or incorporator who exercises 2267
3361	3361	or has the ability to exercise effective control of the 2268
3362	3362	provider, or who influences or has the ability to influence the 2269
3363	3363	provider's business transactions, has been found guilty of, or 2270
3364	3364	has pleaded guilty or nolo contendere to, any felony or crime 2271
3365	3365	punishable by imprisonment of 1 year or more under the laws of 2272
3366	3366	the United States, any state, o r any other country, if the crime 2273
3367	3367	involves moral turpitude, regardless of whether a judgment of 2274
3368	3368	conviction has been entered by the court. However, if a provider 2275
3369	3369
3370	3370	HB 1429 2025
3371	3371
3372	3372
3373	3373
3374	3374	CODING: Words stricken are deletions; words underlined are additions.
3375	3375	hb1429-00
3376	3376	Page 92 of 168
3377	3377	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
3378	3378
3379	3379
3380	3380
3381	3381	operates under a valid certificate of authority, the provider 2276
3382	3382	must immediately remove any such person from his or her role in 2277
3383	3383	the business upon discovery of the conditions set forth in this 2278
3384	3384	subsection or remove such person upon the order of the office. 2279
3385	3385	Failure to remove such person constitutes grounds for suspension 2280
3386	3386	or revocation of the provider's c ertificate of authority. 2281
3387	3387	(4) The office may deny, suspend, or revoke a provider's 2282
3388	3388	authority to conduct business relating to continuing care in 2283
3389	3389	this state, including, but not limited to, the authority to 2284
3390	3390	enter into contracts, provide continuing care or co ntinuing care 2285
3391	3391	at-home, or construct facilities for providing continuing care, 2286
3392	3392	if the office determines that any general partner, subscriber, 2287
3393	3393	stockholder, or incorporator who exercises or has the ability to 2288
3394	3394	exercise effective control of the provider, or who influences or 2289
3395	3395	has the ability to influence the provider's business 2290
3396	3396	transactions, is now or was previously affiliated, directly or 2291
3397	3397	indirectly, through ownership of 10 percent or more, with any 2292
3398	3398	business, corporation, or entity that has been found guilty of, 2293
3399	3399	or has pleaded guilty or nolo contendere to, any felony or crime 2294
3400	3400	punishable by imprisonment for 1 year or more under the laws of 2295
3401	3401	the United States, any state, or any other country. However, if 2296
3402	3402	a provider operates under a valid certificate of authority, th e 2297
3403	3403	provider must immediately remove any such person from his or her 2298
3404	3404	role in the business or notify the office upon discovery of the 2299
3405	3405	conditions set forth in this subsection. Failure to remove the 2300
3406	3406
3407	3407	HB 1429 2025
3408	3408
3409	3409
3410	3410
3411	3411	CODING: Words stricken are deletions; words underlined are additions.
3412	3412	hb1429-00
3413	3413	Page 93 of 168
3414	3414	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
3415	3415
3416	3416
3417	3417
3418	3418	person, provide notice to the office, or comply with an order 2301
3419	3419	from the office to remove the person from his or her role 2302
3420	3420	constitutes grounds for suspension or revocation of the 2303
3421	3421	provider's certificate of authority. 2304
3422	3422	Section 52. Subsections (6) through (10) of section 2305
3423	3423	651.0215, Florida Statutes, are renumbered as sub sections (5) 2306
3424	3424	through (9), respectively, and subsection (4) and present 2307
3425	3425	subsection (5) of that section are amended to read: 2308
3426	3426	651.0215 Consolidated application for a provisional 2309
3427	3427	certificate of authority and a certificate of authority; 2310
3428	3428	required restrictions on use of entrance fees. — 2311
3429	3429	(4) Within 30 45 days after receipt of the information 2312
3430	3430	required under subsection (2), the office shall examine the 2313
3431	3431	information and notify the applicant in writing, specifically 2314
3432	3432	requesting any additional information that the offi ce is 2315
3433	3433	authorized to require. An application is deemed complete when 2316
3434	3434	the office receives all requested information and the applicant 2317
3435	3435	corrects any error or omission of which the applicant was timely 2318
3436	3436	notified or when the time for such notification has expired . 2319
3437	3437	Within 15 days after receipt of all of the requested additional 2320
3438	3438	information, the office shall notify the applicant in writing 2321
3439	3439	that all of the requested information has been received and that 2322
3440	3440	the application is deemed complete as of the date of the notice . 2323
3441	3441	Failure to notify the applicant in writing within the 15 -day 2324
3442	3442	period constitutes acknowledgment by the office that it has 2325
3443	3443
3444	3444	HB 1429 2025
3445	3445
3446	3446
3447	3447
3448	3448	CODING: Words stricken are deletions; words underlined are additions.
3449	3449	hb1429-00
3450	3450	Page 94 of 168
3451	3451	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
3452	3452
3453	3453
3454	3454
3455	3455	received all requested additional information, and the 2326
3456	3456	application is deemed complete for purposes of review on the 2327
3457	3457	date the applicant files all of the required additional 2328
3458	3458	information. 2329
3459	3459	(5) Within 45 days after an application is deemed complete 2330
3460	3460	as set forth in subsection (4) and upon completion of the 2331
3461	3461	remaining requirements of this section, the office shall 2332
3462	3462	complete its review and issu e or deny a certificate of authority 2333
3463	3463	to the applicant. If a certificate of authority is denied, the 2334
3464	3464	office shall notify the applicant in writing, citing the 2335
3465	3465	specific failures to satisfy this chapter, and the applicant is 2336
3466	3466	entitled to an administrative heari ng pursuant to chapter 120. 2337
3467	3467	Section 53. Subsections (7) and (8) of section 651.022, 2338
3468	3468	Florida Statutes, are renumbered as subsections (6) and (7), 2339
3469	3469	respectively, and subsections (3) and (5) and present subsection 2340
3470	3470	(6) of that section are amended to read: 2341
3471	3471	651.022 Provisional certificate of authority; 2342
3472	3472	application.— 2343
3473	3473	(3) In addition to the information required in subsection 2344
3474	3474	(2), an applicant for a provisional certificate of authority 2345
3475	3475	shall submit a feasibility study , prepared by an independent 2346
3476	3476	consultant, with appropriate financial, marketing, and actuarial 2347
3477	3477	assumptions for the first 5 years of operations. The feasibility 2348
3478	3478	study must include at least the following information: 2349
3479	3479	(a) A description of the proposed facility, including the 2350
3480	3480
3481	3481	HB 1429 2025
3482	3482
3483	3483
3484	3484
3485	3485	CODING: Words stricken are deletions; words underlined are additions.
3486	3486	hb1429-00
3487	3487	Page 95 of 168
3488	3488	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
3489	3489
3490	3490
3491	3491
3492	3492	location, size, anticipa ted completion date, and the proposed 2351
3493	3493	construction program. 2352
3494	3494	(b) An identification and evaluation of the primary and, 2353
3495	3495	if appropriate, the secondary market areas of the facility and 2354
3496	3496	the projected unit sales per month. 2355
3497	3497	(c) Projected revenues, including an ticipated entrance 2356
3498	3498	fees; monthly service fees; nursing care revenues, if 2357
3499	3499	applicable; and all other sources of revenue. 2358
3500	3500	(d) Projected expenses, including staffing requirements 2359
3501	3501	and salaries; cost of property, plant, and equipment, including 2360
3502	3502	depreciation expense; interest expense; marketing expense; and 2361
3503	3503	other operating expenses. 2362
3504	3504	(e) A projected balance sheet. 2363
3505	3505	(f) Expectations of the financial condition of the 2364
3506	3506	project, including the projected cash flow, and an estimate of 2365
3507	3507	the funds anticipated to be neces sary to cover startup losses. 2366
3508	3508	(g) The inflation factor, if any, assumed in the 2367
3509	3509	feasibility study for the proposed facility and how and where it 2368
3510	3510	is applied. 2369
3511	3511	(h) Project costs and the total amount of debt financing 2370
3512	3512	required, marketing projections, reside nt fees and charges, the 2371
3513	3513	competition, resident contract provisions, and other factors 2372
3514	3514	that affect the feasibility of the facility. 2373
3515	3515	(i) Appropriate population projections, including 2374
3516	3516	morbidity and mortality assumptions. 2375
3517	3517
3518	3518	HB 1429 2025
3519	3519
3520	3520
3521	3521
3522	3522	CODING: Words stricken are deletions; words underlined are additions.
3523	3523	hb1429-00
3524	3524	Page 96 of 168
3525	3525	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
3526	3526
3527	3527
3528	3528
3529	3529	(j) The name of the person who pre pared the feasibility 2376
3530	3530	study and the experience of such person in preparing similar 2377
3531	3531	studies or otherwise consulting in the field of continuing care. 2378
3532	3532	The preparer of the feasibility study may be the provider or a 2379
3533	3533	contracted third party. 2380
3534	3534	(k) Any other infor mation that the applicant deems 2381
3535	3535	relevant and appropriate to enable the office to make a more 2382
3536	3536	informed determination. 2383
3537	3537	(5)(a) Within 30 days after receipt of an application for 2384
3538	3538	a provisional certificate of authority, the office shall examine 2385
3539	3539	the application and shall notify the applicant in writing, 2386
3540	3540	specifically setting forth and specifically requesting any 2387
3541	3541	additional information the office is permitted by law to 2388
3542	3542	require. If the application submitted is determined by the 2389
3543	3543	office to be substantially incomplet e so as to require 2390
3544	3544	substantial additional information, including biographical 2391
3545	3545	information, the office may return the application to the 2392
3546	3546	applicant with a written notice that the application as received 2393
3547	3547	is substantially incomplete and, therefore, unacceptabl e for 2394
3548	3548	filing without further action required by the office. Any filing 2395
3549	3549	fee received shall be refunded to the applicant. 2396
3550	3550	(b) Within 15 days after receipt of all of the requested 2397
3551	3551	additional information, the office shall notify the applicant in 2398
3552	3552	writing that all of the requested information has been received 2399
3553	3553	and the application is deemed to be complete as of the date of 2400
3554	3554
3555	3555	HB 1429 2025
3556	3556
3557	3557
3558	3558
3559	3559	CODING: Words stricken are deletions; words underlined are additions.
3560	3560	hb1429-00
3561	3561	Page 97 of 168
3562	3562	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
3563	3563
3564	3564
3565	3565
3566	3566	the notice. Failure to so notify the applicant in writing within 2401
3567	3567	the 15-day period shall constitute acknowledgment by the office 2402
3568	3568	that it has received all requested additional information, and 2403
3569	3569	the application shall be deemed to be complete for purposes of 2404
3570	3570	review upon the date of the filing of all of the requested 2405
3571	3571	additional information. 2406
3572	3572	(6) Within 45 days after the date an application is deeme d 2407
3573	3573	complete as set forth in paragraph (5)(b), the office shall 2408
3574	3574	complete its review and issue a provisional certificate of 2409
3575	3575	authority to the applicant based upon its review and a 2410
3576	3576	determination that the application meets all requirements of 2411
3577	3577	law, that the feasibility study was based on sufficient data and 2412
3578	3578	reasonable assumptions, and that the applicant will be able to 2413
3579	3579	provide continuing care or continuing care at -home as proposed 2414
3580	3580	and meet all financial and contractual obligations related to 2415
3581	3581	its operations, includ ing the financial requirements of this 2416
3582	3582	chapter. If the application is denied, the office shall notify 2417
3583	3583	the applicant in writing, citing the specific failures to meet 2418
3584	3584	the provisions of this chapter. Such denial entitles the 2419
3585	3585	applicant to a hearing pursuant to chapter 120. 2420
3586	3586	Section 54. Subsections (4) through (9) of section 2421
3587	3587	651.023, Florida Statutes, are renumbered as subsections (3) 2422
3588	3588	through (8), respectively, and paragraphs (c) and (h) of 2423
3589	3589	subsection (1), subsection (2), and present subsections (3) and 2424
3590	3590	(7) of that section are amended to read: 2425
3591	3591
3592	3592	HB 1429 2025
3593	3593
3594	3594
3595	3595
3596	3596	CODING: Words stricken are deletions; words underlined are additions.
3597	3597	hb1429-00
3598	3598	Page 98 of 168
3599	3599	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
3600	3600
3601	3601
3602	3602
3603	3603	651.023 Certificate of authority; application. — 2426
3604	3604	(1) After issuance of a provisional certificate of 2427
3605	3605	authority, the office shall issue to the holder of such 2428
3606	3606	provisional certificate a certificate of authority if the hol der 2429
3607	3607	of the provisional certificate provides the office with the 2430
3608	3608	following information: 2431
3609	3609	(c) Subject to subsection (3) (4), a provider may submit 2432
3610	3610	an application for a certificate of authority and any required 2433
3611	3611	exhibits upon submission of documents evidencin g that the 2434
3612	3612	project has a minimum of 30 percent of the units reserved for 2435
3613	3613	which the provider is charging an entrance fee. 2436
3614	3614	(h) Documents evidencing that the applicant has complied 2437
3615	3615	with the escrow requirements of subsection (4) (5) or subsection 2438
3616	3616	(6) (7) and will be able to comply with s. 651.035. 2439
3617	3617	2440
3618	3618	If any material change occurs in the facts set forth in an 2441
3619	3619	application filed with the office pursuant to this subsection, 2442
3620	3620	an amendment setting forth such change must be filed with the 2443
3621	3621	office within 10 business days after the applicant becomes aware 2444
3622	3622	of such change, and a copy of the amendment must be sent by 2445
3623	3623	registered mail to the principal office of the facility and to 2446
3624	3624	the principal office of the controlling company. 2447
3625	3625	(2) Within 30 days after receipt of the informa tion 2448
3626	3626	required under subsection (1), the office shall examine such 2449
3627	3627	information and notify the provider in writing, specifically 2450
3628	3628
3629	3629	HB 1429 2025
3630	3630
3631	3631
3632	3632
3633	3633	CODING: Words stricken are deletions; words underlined are additions.
3634	3634	hb1429-00
3635	3635	Page 99 of 168
3636	3636	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
3637	3637
3638	3638
3639	3639
3640	3640	requesting any additional information the office is permitted by 2451
3641	3641	law to require. Within 15 days after receipt of all of the 2452
3642	3642	requested additional information, the office shall notify the 2453
3643	3643	provider in writing that all of the requested information has 2454
3644	3644	been received and the application is deemed to be complete as of 2455
3645	3645	the date of the notice. Failure to notify the applicant in 2456
3646	3646	writing within the 15-day period constitutes acknowledgment by 2457
3647	3647	the office that it has received all requested additional 2458
3648	3648	information, and the application shall be deemed complete for 2459
3649	3649	purposes of review on the date of filing all of the required 2460
3650	3650	additional information. 2461
3651	3651	(3) Within 45 days after an application is deemed complete 2462
3652	3652	as set forth in subsection (2), and upon completion of the 2463
3653	3653	remaining requirements of this section, the office shall 2464
3654	3654	complete its review and issue or deny a certificate of authority 2465
3655	3655	to the holder of a provisional certificate of authority. If a 2466
3656	3656	certificate of authority is denied, the office must notify the 2467
3657	3657	holder of the provisional certificate in writing, citing the 2468
3658	3658	specific failures to satisfy the provisions of this chapter. If 2469
3659	3659	denied, the holder of the provisional certificate is entitled to 2470
3660	3660	an administrative hearing pursuant to chapter 120. 2471
3661	3661	(6)(7) In lieu of the provider fulfilling the requirements 2472
3662	3662	imposed under in subsection (4) (5) and paragraphs (5)(b) (6)(b) 2473
3663	3663	and (c), the office may authorize th e release of escrowed funds 2474
3664	3664	to retire all outstanding debts on the facility and equipment 2475
3665	3665
3666	3666	HB 1429 2025
3667	3667
3668	3668
3669	3669
3670	3670	CODING: Words stricken are deletions; words underlined are additions.
3671	3671	hb1429-00
3672	3672	Page 100 of 168
3673	3673	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
3674	3674
3675	3675
3676	3676
3677	3677	upon application of the provider and upon the provider's showing 2476
3678	3678	that the provider will grant to the residents a first mortgage 2477
3679	3679	on the land, buildings, and equipment that constitute the 2478
3680	3680	facility, and that the provider has satisfied paragraphs (5)(a) 2479
3681	3681	(6)(a) and (d). Such mortgage shall secure the refund of the 2480
3682	3682	entrance fee in the amount required by this chapter. The 2481
3683	3683	granting of such mortgage is subject to the following: 2482
3684	3684	(a) The first mortgage is granted to an independent trust 2483
3685	3685	that is beneficially held by the residents. The document 2484
3686	3686	creating the trust must include a provision that agrees to an 2485
3687	3687	annual audit and will furnish to the office all information the 2486
3688	3688	office may reasonably require. The mortgage may secure payment 2487
3689	3689	on bonds issued to the residents or trustee. Such bonds are 2488
3690	3690	redeemable after termination of the residency contract in the 2489
3691	3691	amount and manner required by this chapter for the refund of an 2490
3692	3692	entrance fee. 2491
3693	3693	(b) Before granting a first mortgage to the residents, all 2492
3694	3694	construction must be substantially completed and substantially 2493
3695	3695	all equipment must be purchased. No part of the entrance fees 2494
3696	3696	may be pledged as security for a construction loan or otherwise 2495
3697	3697	used for construction expenses before the completion of 2496
3698	3698	construction. 2497
3699	3699	(c) If the provider is leasing the land or buildings used 2498
3700	3700	by the facility, the leasehold interest must be for a term of at 2499
3701	3701	least 30 years. 2500
3702	3702
3703	3703	HB 1429 2025
3704	3704
3705	3705
3706	3706
3707	3707	CODING: Words stricken are deletions; words underlined are additions.
3708	3708	hb1429-00
3709	3709	Page 101 of 168
3710	3710	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
3711	3711
3712	3712
3713	3713
3714	3714	Section 55. Subsection (3) of section 651.024, Flori da 2501
3715	3715	Statutes, is renumbered as subsection (5), and new subsections 2502
3716	3716	(3) and (4) are added to that section to read: 2503
3717	3717	651.024 Acquisition. — 2504
3718	3718	(3) A bondholder that obtains consent rights from a 2505
3719	3719	provider which allow the bondholder to have oversight or 2506
3720	3720	decisionmaking authority over a facility or in the financial 2507
3721	3721	decisions of the facility is subject to s. 628.4615 and is not 2508
3722	3722	required to submit filings pursuant to s. 651.022, s. 651.023, 2509
3723	3723	or s. 651.0245. For purposes of this subsection, the term 2510
3724	3724	"consent rights" includes, but is not limited to, all of the 2511
3725	3725	following: 2512
3726	3726	(a) Approving or initiating the sale of a facility. 2513
3727	3727	(b) Approving or entering into an affiliation arrangement 2514
3728	3728	on behalf of the facility. 2515
3729	3729	(c) Approving or executing new or amended financing for 2516
3730	3730	the facility. 2517
3731	3731	(d) Approving or entering into a forbearance agreement for 2518
3732	3732	the facility. 2519
3733	3733	(4) A continuing care retirement community that enters 2520
3734	3734	into an affiliation agreement with another entity resulting in a 2521
3735	3735	change of officers, directors, or effective contr ol is subject 2522
3736	3736	to s. 628.4615 and is not required to submit filings pursuant to 2523
3737	3737	s. 651.022, s. 651.023, or s. 651.0245. 2524
3738	3738	Section 56. Paragraph (a) of subsection (2), paragraph (a) 2525
3739	3739
3740	3740	HB 1429 2025
3741	3741
3742	3742
3743	3743
3744	3744	CODING: Words stricken are deletions; words underlined are additions.
3745	3745	hb1429-00
3746	3746	Page 102 of 168
3747	3747	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
3748	3748
3749	3749
3750	3750
3751	3751	of subsection (5), and subsection (6) of section 651.0246, 2526
3752	3752	Florida Statutes, are amended to read: 2527
3753	3753	651.0246 Expansions. — 2528
3754	3754	(2) A provider applying for expansion of a certificated 2529
3755	3755	facility must submit all of the following: 2530
3756	3756	(a) A feasibility study prepared by an independent 2531
3757	3757	certified public accountant. The feasibility study mus t include 2532
3758	3758	at least the following information: 2533
3759	3759	1. A description of the facility and proposed expansion, 2534
3760	3760	including the location, the size, the anticipated completion 2535
3761	3761	date, and the proposed construction program. 2536
3762	3762	2. An identification and evaluation of the primary and, if 2537
3763	3763	applicable, secondary market areas of the facility and the 2538
3764	3764	projected unit sales per month. 2539
3765	3765	3. Projected revenues, including anticipated entrance 2540
3766	3766	fees; monthly service fees; nursing care revenues, if 2541
3767	3767	applicable; and all other sources of re venue. 2542
3768	3768	4. Projected expenses, including for staffing requirements 2543
3769	3769	and salaries; the cost of property, plant, and equipment, 2544
3770	3770	including depreciation expense; interest expense; marketing 2545
3771	3771	expense; and other operating expenses. 2546
3772	3772	5. A projected balance sheet of the applicant. 2547
3773	3773	6. The expectations for the financial condition of the 2548
3774	3774	project, including the projected cash flow and an estimate of 2549
3775	3775	the funds anticipated to be necessary to cover startup losses. 2550
3776	3776
3777	3777	HB 1429 2025
3778	3778
3779	3779
3780	3780
3781	3781	CODING: Words stricken are deletions; words underlined are additions.
3782	3782	hb1429-00
3783	3783	Page 103 of 168
3784	3784	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
3785	3785
3786	3786
3787	3787
3788	3788	7. The inflation factor, if any, assumed in the study for 2551
3789	3789	the proposed expansion and how and where it is applied. 2552
3790	3790	8. Project costs; the total amount of debt financing 2553
3791	3791	required; marketing projections; resident rates, fees, and 2554
3792	3792	charges; the competition; resident contract provisions; and 2555
3793	3793	other factors that aff ect the feasibility of the facility. 2556
3794	3794	9. Appropriate population projections, including morbidity 2557
3795	3795	and mortality assumptions. 2558
3796	3796	10. The name of the person who prepared the feasibility 2559
3797	3797	study and his or her experience in preparing similar studies or 2560
3798	3798	otherwise consulting in the field of continuing care. 2561
3799	3799	11. Financial forecasts or projections prepared in 2562
3800	3800	accordance with standards adopted by the American Institute of 2563
3801	3801	Certified Public Accountants or in accordance with standards for 2564
3802	3802	feasibility studies for continuing care retirement communities 2565
3803	3803	adopted by the Actuarial Standards Board. 2566
3804	3804	12. An independent evaluation and examination opinion for 2567
3805	3805	the first 5 years of operations, or a comparable opinion 2568
3806	3806	acceptable to the office, by the certified public accounta nt who 2569
3807	3807	prepared the study, of the underlying assumptions used as a 2570
3808	3808	basis for the forecasts or projections in the study and that the 2571
3809	3809	assumptions are reasonable and proper and the project as 2572
3810	3810	proposed is feasible. 2573
3811	3811	13. The description of and plan for the ongoing operation 2574
3812	3812	of existing facilities. 2575
3813	3813
3814	3814	HB 1429 2025
3815	3815
3816	3816
3817	3817
3818	3818	CODING: Words stricken are deletions; words underlined are additions.
3819	3819	hb1429-00
3820	3820	Page 104 of 168
3821	3821	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
3822	3822
3823	3823
3824	3824
3825	3825	14.13. Any other information that the provider deems 2576
3826	3826	relevant and appropriate to provide to enable the office to make 2577
3827	3827	a more informed determination. 2578
3828	3828	2579
3829	3829	If any material change occurs in the facts set forth in an 2580
3830	3830	application filed with the office pursuant to this section, an 2581
3831	3831	amendment setting forth such change must be filed with the 2582
3832	3832	office within 10 business days after the applicant becomes aware 2583
3833	3833	of such change, and a copy of the amendment must be sent by 2584
3834	3834	registered mail to the principal office of the facility and to 2585
3835	3835	the principal office of the controlling company. 2586
3836	3836	(5)(a) Within 30 days after receipt of an application for 2587
3837	3837	expansion, the office shall examine the application and shall 2588
3838	3838	notify the applicant in writing, s pecifically requesting any 2589
3839	3839	additional information that the office is authorized to require. 2590
3840	3840	Within 15 days after the office receives all the requested 2591
3841	3841	additional information, the office shall notify the applicant in 2592
3842	3842	writing that the requested information h as been received and 2593
3843	3843	that the application is deemed complete as of the date of the 2594
3844	3844	notice. Failure to notify the applicant in writing within the 2595
3845	3845	15-day period constitutes acknowledgment by the office that it 2596
3846	3846	has received all requested additional informatio n, and the 2597
3847	3847	application is deemed complete for purposes of review on the 2598
3848	3848	date the applicant files all of the required additional 2599
3849	3849	information. If the application submitted is determined by the 2600
3850	3850
3851	3851	HB 1429 2025
3852	3852
3853	3853
3854	3854
3855	3855	CODING: Words stricken are deletions; words underlined are additions.
3856	3856	hb1429-00
3857	3857	Page 105 of 168
3858	3858	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
3859	3859
3860	3860
3861	3861
3862	3862	office to be substantially incomplete so as to require 2601
3863	3863	substantial additional information, including biographical 2602
3864	3864	information, the office may return the application to the 2603
3865	3865	applicant with a written notice stating that the application as 2604
3866	3866	received is substantially incomplete and, therefore, is 2605
3867	3867	unacceptable for filing witho ut further action required by the 2606
3868	3868	office. Any filing fee received must be refunded to the 2607
3869	3869	applicant. 2608
3870	3870	(6) Within 45 30 days after the date on which an 2609
3871	3871	application is deemed complete as provided in paragraph (5)(b), 2610
3872	3872	the office shall complete its review and , based upon its review, 2611
3873	3873	approve an expansion by the applicant and issue a determination 2612
3874	3874	that the application meets all requirements of law, that the 2613
3875	3875	feasibility study was based on sufficient data and reasonable 2614
3876	3876	assumptions, and that the applicant will be able to provide 2615
3877	3877	continuing care or continuing care at -home as proposed and meet 2616
3878	3878	all financial and contractual obligations related to its 2617
3879	3879	operations, including the financial requirements of this 2618
3880	3880	chapter. If the application is denied, the office must notify 2619
3881	3881	the applicant in writing, citing the specific failures to meet 2620
3882	3882	the requirements of this chapter. The denial entitles the 2621
3883	3883	applicant to a hearing pursuant to chapter 120. 2622
3884	3884	Section 57. Subsections (3) through (10) of section 2623
3885	3885	651.026, Florida Statutes, are renumbered as subsections (5) 2624
3886	3886	through (12), respectively, subsection (1), paragraphs (e) and 2625
3887	3887
3888	3888	HB 1429 2025
3889	3889
3890	3890
3891	3891
3892	3892	CODING: Words stricken are deletions; words underlined are additions.
3893	3893	hb1429-00
3894	3894	Page 106 of 168
3895	3895	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
3896	3896
3897	3897
3898	3898
3899	3899	(f) of subsection (2), and present subsection (6) are amended, 2626
3900	3900	paragraphs (g) and (h) are added to subsection (2), and new 2627
3901	3901	subsections (3) and (4) are added to tha t section, to read: 2628
3902	3902	651.026 Annual and quarterly reports.— 2629
3903	3903	(1) Annually, on or before May 1, the provider shall file 2630
3904	3904	an annual report and such other information and data showing its 2631
3905	3905	condition as of the last day of the preceding calendar year, 2632
3906	3906	except as provided in subsection (7) (5). If the office does not 2633
3907	3907	receive the required information on or before May 1, a late fee 2634
3908	3908	may be charged pursuant to s. 651.015(2)(c). The office may 2635
3909	3909	approve an extension of up to 30 days. 2636
3910	3910	(2) The annual report shall be in s uch form as the 2637
3911	3911	commission prescribes and shall contain at least the following: 2638
3912	3912	(e) Each facility shall file with the office annually, 2639
3913	3913	together with the annual report required by this section, A 2640
3914	3914	computation of its minimum liquid reserve calculated in 2641
3915	3915	accordance with s. 651.035 on a form prescribed by the 2642
3916	3916	commission. 2643
3917	3917	(f) If, due to a change in generally accepted accounting 2644
3918	3918	principles, the balance sheet, statement of income and expenses, 2645
3919	3919	statement of equity or fund balances, or statement of cash flows 2646
3920	3920	is known by any other name or title, the annual report must 2647
3921	3921	contain Financial statements using the changed name names or 2648
3922	3922	title titles that most closely corresponds correspond to a 2649
3923	3923	balance sheet, statement of income and expenses, statement of 2650
3924	3924
3925	3925	HB 1429 2025
3926	3926
3927	3927
3928	3928
3929	3929	CODING: Words stricken are deletions; words underlined are additions.
3930	3930	hb1429-00
3931	3931	Page 107 of 168
3932	3932	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
3933	3933
3934	3934
3935	3935
3936	3936	equity or fund balances, and statement of changes in cash flows , 2651
3937	3937	in the event that, due to a change in generally accepted 2652
3938	3938	accounting principles, the balance sheet, statement of income 2653
3939	3939	and expenses, statement of equity or fund balances, or statement 2654
3940	3940	of cash flows is known b y another name or title . 2655
3941	3941	(g) An accounts payable aging schedule that lists all 2656
3942	3942	outstanding debt obligations and the corresponding amounts owed 2657
3943	3943	to each vendor. 2658
3944	3944	(h) Details on any debt that has been forgiven or deferred 2659
3945	3945	during the period. Details must in clude the entity the debt is 2660
3946	3946	due to, the amount forgiven or deferred, an explanation as to 2661
3947	3947	why the debt was forgiven or deferred, and whether the debt has 2662
3948	3948	been assumed by another party on behalf of the facility. 2663
3949	3949	(3) Each facility shall file quarterly wit h the office all 2664
3950	3950	escrow bank statements for the last quarter of the reporting 2665
3951	3951	period which support the funds held in each of the minimum 2666
3952	3952	liquid reserves bank accounts. The liquid reserves funds include 2667
3953	3953	the debt service reserve, the operating reserve, and t he renewal 2668
3954	3954	and replacement reserve. 2669
3955	3955	(4) Any provider that has been placed into administrative 2670
3956	3956	supervision under s. 651.018 shall provide a compiled 2 -year 2671
3957	3957	forecast, submitted on a form prescribed by the office, as long 2672
3958	3958	as the provider operates under admi nistrative supervision. The 2673
3959	3959	compiled data in the 2 -year forecast shall be presented on a 2674
3960	3960	monthly basis. 2675
3961	3961
3962	3962	HB 1429 2025
3963	3963
3964	3964
3965	3965
3966	3966	CODING: Words stricken are deletions; words underlined are additions.
3967	3967	hb1429-00
3968	3968	Page 108 of 168
3969	3969	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
3970	3970
3971	3971
3972	3972
3973	3973	(8)(6) The workpapers, account analyses, descriptions of 2676
3974	3974	basic assumptions, and other information necessary for a full 2677
3975	3975	understanding of the annual sta tement of a provider as filed 2678
3976	3976	with the office shall be made available for visual inspection by 2679
3977	3977	the office at the facility or, if the office requests, at 2680
3978	3978	another agreed-upon site. Photocopies shall be provided to the 2681
3979	3979	office upon request may not be made unle ss consented to by the 2682
3980	3980	provider. 2683
3981	3981	Section 58. Subsections (2), (3), and (4) of section 2684
3982	3982	651.0261, Florida Statutes, are renumbered as subsections (3), 2685
3983	3983	(4), and (5), respectively, subsection (1) and present 2686
3984	3984	subsection (3) are amended, and a new subsection (2) is added to 2687
3985	3985	that section, to read: 2688
3986	3986	651.0261 Quarterly and monthly statements. — 2689
3987	3987	(1) Within 45 days after the end of each fiscal quarter, 2690
3988	3988	each provider shall file a quarterly unaudited financial 2691
3989	3989	statement of the provider or of the facility in the fo rm 2692
3990	3990	prescribed by commission rule and days cash on hand, occupancy, 2693
3991	3991	debt service coverage ratio, and a detailed listing of the 2694
3992	3992	assets maintained in the liquid reserve as required under s. 2695
3993	3993	651.035. The last quarterly statement for a fiscal year is not 2696
3994	3994	required if a provider does not have pending a regulatory action 2697
3995	3995	level event, impairment, or a corrective action plan. If a 2698
3996	3996	provider falls below two or more of the thresholds set forth in 2699
3997	3997	s. 651.011(29) s. 651.011(26) at the end of any fiscal quarter, 2700
3998	3998
3999	3999	HB 1429 2025
4000	4000
4001	4001
4002	4002
4003	4003	CODING: Words stricken are deletions; words underlined are additions.
4004	4004	hb1429-00
4005	4005	Page 109 of 168
4006	4006	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
4007	4007
4008	4008
4009	4009
4010	4010	the provider shall submit to the office, at the same time as the 2701
4011	4011	quarterly statement, an explanation of the circumstances and a 2702
4012	4012	description of the actions it will take to meet the 2703
4013	4013	requirements. 2704
4014	4014	(2) Each provider shall file with the office quarterly, 2705
4015	4015	together with the quarterly statement required by this section: 2706
4016	4016	(a) All escrow bank statements for each quarter which 2707
4017	4017	support the funds held in each of the minimum liquid reserve 2708
4018	4018	bank account, including, but not limited to, the debt service 2709
4019	4019	reserve, the operating rese rve, and the renewal and replacement 2710
4020	4020	reserve. 2711
4021	4021	(b) An accounts payable aging schedule that lists all 2712
4022	4022	outstanding debt obligations and the corresponding amounts owed 2713
4023	4023	to vendors. 2714
4024	4024	(c) Details on any debt that has been forgiven or deferred 2715
4025	4025	during the period. Such details must include the entity the debt 2716
4026	4026	is due to, the amount forgiven or deferred, an explanation as to 2717
4027	4027	why the debt was forgiven or deferred, and whether the debt has 2718
4028	4028	been assumed by another party on behalf of the facility. If a 2719
4029	4029	facility is required to file monthly financial statements with 2720
4030	4030	the office, the facility is required to include details on 2721
4031	4031	forgiven or deferred debt with the monthly filing. 2722
4032	4032	(4)(3) A filing under subsection (3) (2) may be required 2723
4033	4033	if any of the following applies: 2724
4034	4034	(a) The provider is: 2725
4035	4035
4036	4036	HB 1429 2025
4037	4037
4038	4038
4039	4039
4040	4040	CODING: Words stricken are deletions; words underlined are additions.
4041	4041	hb1429-00
4042	4042	Page 110 of 168
4043	4043	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
4044	4044
4045	4045
4046	4046
4047	4047	1. Subject to administrative supervision proceedings; 2726
4048	4048	2. Subject to a corrective action plan resulting from a 2727
4049	4049	regulatory action level event and for up to 2 years after the 2728
4050	4050	factors that caused the regulatory action level event have been 2729
4051	4051	corrected; or 2730
4052	4052	3. Subject to delinquency or receivership proceedings or 2731
4053	4053	has filed for bankruptcy. 2732
4054	4054	(b) The provider or facility displays a declining 2733
4055	4055	financial position. 2734
4056	4056	(c) A change of ownership of the provider or facility has 2735
4057	4057	occurred within the previ ous 2 years. 2736
4058	4058	(d) The provider is found to be impaired. 2737
4059	4059	Section 59. Paragraph (c) of subsection (1), subsection 2738
4060	4060	(2), paragraph (a) of subsection (3), and paragraph (c) of 2739
4061	4061	subsection (5) of section 651.033, Florida Statutes, are 2740
4062	4062	amended, and subsection (7) is added to that section, to read: 2741
4063	4063	651.033 Escrow accounts. — 2742
4064	4064	(1) When funds are required to be deposited in an escrow 2743
4065	4065	account pursuant to s. 651.0215, s. 651.022, s. 651.023, s. 2744
4066	4066	651.0246, s. 651.035, or s. 651.055: 2745
4067	4067	(c) Any agreement establishing an escrow account required 2746
4068	4068	under this chapter is subject to approval by the office before 2747
4069	4069	execution. The agreement must be in writing and contain, in 2748
4070	4070	addition to any other provisions required by law, a provision 2749
4071	4071	whereby the escrow agent agrees to abide by the duties imposed 2750
4072	4072
4073	4073	HB 1429 2025
4074	4074
4075	4075
4076	4076
4077	4077	CODING: Words stricken are deletions; words underlined are additions.
4078	4078	hb1429-00
4079	4079	Page 111 of 168
4080	4080	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
4081	4081
4082	4082
4083	4083
4084	4084	by paragraphs (b) and (e), (3)(a) and (b), (5)(a), and 2751
4085	4085	subsection (6). 2752
4086	4086	(2)(a) As used in this subsection, the term "emergency" 2753
4087	4087	means conditions that exist beyond the control of the provider, 2754
4088	4088	such as severe damage to the provider's phy sical premises caused 2755
4089	4089	by a natural or manmade disaster or another event of comparable 2756
4090	4090	gravity and severity. 2757
4091	4091	(b) Notwithstanding s. 651.035(7), in the event of an 2758
4092	4092	emergency and upon written petition by the provider to the 2759
4093	4093	office, on a form prescribed by the office, the office may allow 2760
4094	4094	a withdrawal of up to 10 percent of the required minimum liquid 2761
4095	4095	reserve, consistent with the requirements governing how funds 2762
4096	4096	can be used under s. 651.035. Before submitting the petition to 2763
4097	4097	the office, the provider must mee t with the office to review the 2764
4098	4098	emergency petition. In the meeting, the provider must address 2765
4099	4099	the details of the emergency, the circumstances leading to the 2766
4100	4100	need for an emergency petition, the provider's plan to mitigate 2767
4101	4101	the emergency, the amount being req uested, and the provider's 2768
4102	4102	plan and timeline to restore the minimum liquid reserves into 2769
4103	4103	compliance with s. 651.035 . The office shall have 10 business 3 2770
4104	4104	working days to deny the petition for the emergency 10 -percent 2771
4105	4105	withdrawal. If the office fails to deny the petition within 10 2772
4106	4106	business 3 working days, the petition is deemed to have been 2773
4107	4107	granted by the office. For purposes of this section, the term 2774
4108	4108	"business day working day" means each day that is not a 2775
4109	4109
4110	4110	HB 1429 2025
4111	4111
4112	4112
4113	4113
4114	4114	CODING: Words stricken are deletions; words underlined are additions.
4115	4115	hb1429-00
4116	4116	Page 112 of 168
4117	4117	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
4118	4118
4119	4119
4120	4120
4121	4121	Saturday, Sunday, or legal holiday as defined by Flori da law. 2776
4122	4122	Also, for purposes of this section, the day the petition is 2777
4123	4123	received by the office is not counted as one of the 10 3 days. 2778
4124	4124	(3) When entrance fees are required to be deposited in an 2779
4125	4125	escrow account pursuant to s. 651.0215, s. 651.022, s. 651.023, 2780
4126	4126	s. 651.0246, or s. 651.055: 2781
4127	4127	(a) The provider shall deliver to the resident a written 2782
4128	4128	receipt. The receipt must show the payor's name and address, the 2783
4129	4129	date, the price of the care contract, and the amount of money 2784
4130	4130	paid. A copy of each receipt, together with the funds, must be 2785
4131	4131	deposited with the escrow agent or as provided in paragraph (c). 2786
4132	4132	The escrow agent must release such funds to the provider 7 days 2787
4133	4133	after the date of receipt of the funds by the escrow agent if 2788
4134	4134	the provider, operating under a certificate o f authority issued 2789
4135	4135	by the office, has met the requirements of s. 651.0215(7) s. 2790
4136	4136	651.0215(8), s. 651.023(5) s. 651.023(6), or s. 651.0246. 2791
4137	4137	However, if the resident rescinds the contract within the 7 -day 2792
4138	4138	period, the escrow agent must release the escrowed fee s to the 2793
4139	4139	resident. 2794
4140	4140	(5) When funds are required to be deposited in an escrow 2795
4141	4141	account pursuant to s. 651.0215, s. 651.022, s. 651.023, s. 2796
4142	4142	651.0246, or s. 651.035, the following apply: 2797
4143	4143	(c) In accordance with the annual and quarterly filing 2798
4144	4144	deadlines set forth in ss. 651.026 and 651.0261 On or before the 2799
4145	4145	20th day of the month following the quarter for which the 2800
4146	4146
4147	4147	HB 1429 2025
4148	4148
4149	4149
4150	4150
4151	4151	CODING: Words stricken are deletions; words underlined are additions.
4152	4152	hb1429-00
4153	4153	Page 113 of 168
4154	4154	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
4155	4155
4156	4156
4157	4157
4158	4158	statement is due, the provider shall file with the office a copy 2801
4159	4159	of the escrow agent's statement or, if the provider has not 2802
4160	4160	received the escrow age nt's statement, a copy of the written 2803
4161	4161	request to the escrow agent for the statement. 2804
4162	4162	(7) The escrow agent shall provide prompt written 2805
4163	4163	notification to the office upon withdrawal of any funds from an 2806
4164	4164	account required by s. 651.035. Any escrow agreement es tablished 2807
4165	4165	to meet any requirement of s. 651.035 must contain this 2808
4166	4166	provision. 2809
4167	4167	Section 60. Subsection (2) of section 651.034, Florida 2810
4168	4168	Statutes, is amended to read: 2811
4169	4169	651.034 Financial and operating requirements for 2812
4170	4170	providers.— 2813
4171	4171	(2) Except when the offic e's remedial rights are suspended 2814
4172	4172	pursuant to s. 651.114(11)(a), The office must take action 2815
4173	4173	necessary to place an impaired provider under regulatory 2816
4174	4174	control, including administrative supervision or any remedy 2817
4175	4175	available under part I of chapter 631. An impairment is 2818
4176	4176	sufficient grounds for the department to be appointed as 2819
4177	4177	receiver as provided in chapter 631, except when the office's 2820
4178	4178	remedial rights are suspended pursuant to s. 651.114(11)(a). If 2821
4179	4179	the office's remedial rights are suspended pursuant to s. 2822
4180	4180	651.114(11)(a), the impaired provider must make available to the 2823
4181	4181	office copies of any corrective action plan approved by the 2824
4182	4182	third-party lender or trustee to cure the impairment and any 2825
4183	4183
4184	4184	HB 1429 2025
4185	4185
4186	4186
4187	4187
4188	4188	CODING: Words stricken are deletions; words underlined are additions.
4189	4189	hb1429-00
4190	4190	Page 114 of 168
4191	4191	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
4192	4192
4193	4193
4194	4194
4195	4195	related required report. For purposes of s. 631.051, impairment 2826
4196	4196	of a provider is defined according to the term "impaired" has 2827
4197	4197	the same meaning as in under s. 651.011. The office may forego 2828
4198	4198	taking action for up to 90 180 days after the impairment if the 2829
4199	4199	office finds there is a reasonable expectation that the 2830
4200	4200	impairment may be elim inated within the 90-day 180-day period. 2831
4201	4201	Section 61. Subsections (1) and (3), paragraph (b) of 2832
4202	4202	subsection (7), and subsection (8) of section 651.035, Florida 2833
4203	4203	Statutes, are amended to read: 2834
4204	4204	651.035 Minimum liquid reserve requirements. — 2835
4205	4205	(1) A provider shall maintain in escrow a minimum liquid 2836
4206	4206	reserve consisting of the following reserves, as applicable . 2837
4207	4207	Each established account must be separate and unique to a 2838
4208	4208	facility, unencumbered, and not commingled with any other funds 2839
4209	4209	from any other account, facil ity, affiliate, or obligated group. 2840
4210	4210	Funds held in escrow under paragraphs (a), (c), and (d) must be 2841
4211	4211	held completely separate from any funds held by a trustee under 2842
4212	4212	paragraph (b), meaning the debt service, operating, and renewal 2843
4213	4213	and replacement reserves mus t have their own distinct account 2844
4214	4214	number: 2845
4215	4215	(a) Each provider shall maintain in escrow as a debt 2846
4216	4216	service reserve the aggregate amount of all principal and 2847
4217	4217	interest payments due during the fiscal year on any mortgage 2848
4218	4218	loan or other long-term financing of the facility, including 2849
4219	4219	property taxes as recorded in the audited financial report 2850
4220	4220
4221	4221	HB 1429 2025
4222	4222
4223	4223
4224	4224
4225	4225	CODING: Words stricken are deletions; words underlined are additions.
4226	4226	hb1429-00
4227	4227	Page 115 of 168
4228	4228	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
4229	4229
4230	4230
4231	4231
4232	4232	required under s. 651.026. The amount must include any leasehold 2851
4233	4233	payments and all costs related to such payments. If principal 2852
4234	4234	payments are not due during the fiscal year, the provider must 2853
4235	4235	maintain in escrow as a minimum liquid reserve an amount equal 2854
4236	4236	to interest payments due during the next 12 months on any 2855
4237	4237	mortgage loan or other long -term financing of the facility, 2856
4238	4238	including property taxes. If a provider does not have a mortg age 2857
4239	4239	loan or other financing on the facility, the provider must 2858
4240	4240	deposit monthly in escrow as a minimum liquid reserve an amount 2859
4241	4241	equal to one-twelfth of the annual property tax liability as 2860
4242	4242	indicated in the most recent tax notice provided pursuant to s. 2861
4243	4243	197.322(3), and must annually pay property taxes out of such 2862
4244	4244	escrow. 2863
4245	4245	(b) A provider that has outstanding indebtedness that 2864
4246	4246	requires a debt service reserve to be held in escrow pursuant to 2865
4247	4247	a trust indenture or mortgage lien on the facility and for which 2866
4248	4248	the debt service reserve may only be used to pay principal and 2867
4249	4249	interest payments on the debt that the debtor is obligated to 2868
4250	4250	pay, and which may include property taxes and insurance, may 2869
4251	4251	include such debt service reserve in computing the minimum 2870
4252	4252	liquid reserve needed to satisfy this subsection if the provider 2871
4253	4253	furnishes to the office a copy of the agreement under which such 2872
4254	4254	debt service reserve is held, together with a statement of the 2873
4255	4255	amount being held in escrow for the debt service reserve, 2874
4256	4256	certified by the lend er or trustee and the provider to be 2875
4257	4257
4258	4258	HB 1429 2025
4259	4259
4260	4260
4261	4261
4262	4262	CODING: Words stricken are deletions; words underlined are additions.
4263	4263	hb1429-00
4264	4264	Page 116 of 168
4265	4265	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
4266	4266
4267	4267
4268	4268
4269	4269	correct. The trustee shall provide the office with any 2876
4270	4270	information concerning the debt service reserve account upon 2877
4271	4271	request of the provider or the office. In addition, the trust 2878
4272	4272	indenture, loan agreement, or escrow agre ement must provide that 2879
4273	4273	the provider, trustee, lender, escrow agent, or a person 2880
4274	4274	designated to act in its place shall notify the office in 2881
4275	4275	writing at least 10 days before the withdrawal of any portion of 2882
4276	4276	the debt service reserve funds required to be held i n escrow as 2883
4277	4277	described in this paragraph. The notice must include an 2884
4278	4278	affidavit sworn to by the provider, the trustee, or a person 2885
4279	4279	designated to act in its place which includes the amount of the 2886
4280	4280	scheduled debt service payment, the payment due date, the amoun t 2887
4281	4281	of the withdrawal, the accounts from which the withdrawal will 2888
4282	4282	be made, and a plan with a schedule for replenishing the 2889
4283	4283	withdrawn funds. If the plan is revised by a consultant that is 2890
4284	4284	retained as prescribed in the provider's financing documents, 2891
4285	4285	the revised plan must be submitted to the office within 10 days 2892
4286	4286	after the approval by the lender or trustee. If a debt service 2893
4287	4287	reserve is transferred from one financial institution or lender 2894
4288	4288	to another, the provider must provide notice to the office at 2895
4289	4289	least 10 days before the transfer takes place. The notice must 2896
4290	4290	include an affidavit sworn to by the provider and include the 2897
4291	4291	name of the institution where the debt service reserve is being 2898
4292	4292	transferred, the date of transfer, the amount being transferred, 2899
4293	4293	a copy of the agreement requiring the transfer to the new 2900
4294	4294
4295	4295	HB 1429 2025
4296	4296
4297	4297
4298	4298
4299	4299	CODING: Words stricken are deletions; words underlined are additions.
4300	4300	hb1429-00
4301	4301	Page 117 of 168
4302	4302	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
4303	4303
4304	4304
4305	4305
4306	4306	financial institution, and the contact information for the 2901
4307	4307	escrow agent of the new account. The new escrow agreement must 2902
4308	4308	comply with s. 651.033. Any funds held pursuant to this section 2903
4309	4309	do not negate the require ment to maintain an escrow account as 2904
4310	4310	required in paragraph (a). Any such separate debt service 2905
4311	4311	reserves are not subject to the transfer provisions set forth in 2906
4312	4312	subsection (8). 2907
4313	4313	(c) Each provider shall maintain in escrow an operating 2908
4314	4314	reserve equal to or greater than the following amounts: 2909
4315	4315	1. Thirty 30 percent of the total operating expenses 2910
4316	4316	projected in the feasibility study required by s. 651.023 for 2911
4317	4317	the first 12 months of operation. 2912
4318	4318	2. After the first 12 months of operation, 30 percent of 2913
4319	4319	the operating reserve in the annual report filed pursuant to s. 2914
4320	4320	651.026. 2915
4321	4321	3. Once a provider maintains an occupancy level in excess 2916
4322	4322	of 80 percent for at least 12 months and has presented in its 2917
4323	4323	most recent annual report that it has reached stabilized 2918
4324	4324	occupancy, 15 percent of the total operating reserve upon 2919
4325	4325	approval of the office. 2920
4326	4326	4. If the provider has been found to meet any of the 2921
4327	4327	following conditions, 50 percent of the total operating reserve: 2922
4328	4328	a. Is insolvent or financially impaired. 2923
4329	4329	b. Is at regulatory action level under s. 651.034. 2924
4330	4330	c. Is placed under administrative supervision. 2925
4331	4331
4332	4332	HB 1429 2025
4333	4333
4334	4334
4335	4335
4336	4336	CODING: Words stricken are deletions; words underlined are additions.
4337	4337	hb1429-00
4338	4338	Page 118 of 168
4339	4339	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
4340	4340
4341	4341
4342	4342
4343	4343	d. Is in a hazardous financial condition under s. 651.113. 2926
4344	4344	e. Entered into a forbearance agreement with a lender. 2927
4345	4345	f. Filed or has notified the office of its intent to file 2928
4346	4346	for bankruptcy. 2929
4347	4347	g. Failed to maintain minimum liquid reserve requirements 2930
4348	4348	under subsections (10) and (11). 2931
4349	4349	2932
4350	4350	Upon notice from the office that a condition identified in this 2933
4351	4351	subparagraph exists, the provider has 10 days within which to 2934
4352	4352	fund the operating reserve at 50 percent and provide evidence of 2935
4353	4353	the funding to the office. 2936
4354	4354	(d) Before reducing the operating reserve required under 2937
4355	4355	paragraph (c), the provider must obtain written approval from 2938
4356	4356	the office Thereafter, each provider shall maintain in es crow an 2939
4357	4357	operating reserve equal to 15 percent of the total operating 2940
4358	4358	expenses in the annual report filed pursuant to s. 651.026 . 2941
4359	4359	(e) If a provider has been in operation for more than 12 2942
4360	4360	months, the total annual operating expenses must be determined 2943
4361	4361	by averaging the total annual operating expenses reported to the 2944
4362	4362	office by the number of annual reports filed with the office 2945
4363	4363	within the preceding 3 -year period subject to adjustment if 2946
4364	4364	there is a change in the number of facilities owned. For 2947
4365	4365	purposes of this subsection, total annual operating expenses 2948
4366	4366	include all expenses of the facility except depreciation and 2949
4367	4367	amortization; interest and property taxes included in paragraph 2950
4368	4368
4369	4369	HB 1429 2025
4370	4370
4371	4371
4372	4372
4373	4373	CODING: Words stricken are deletions; words underlined are additions.
4374	4374	hb1429-00
4375	4375	Page 119 of 168
4376	4376	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
4377	4377
4378	4378
4379	4379
4380	4380	(a); extraordinary expenses that are adequately explained and 2951
4381	4381	documented in accordance with generally accepted accounting 2952
4382	4382	principles; liability insurance premiums in excess of those paid 2953
4383	4383	in calendar year 1999; and changes in the obligation to provide 2954
4384	4384	future services to current residents. For providers initially 2955
4385	4385	licensed during or after calen dar year 1999, liability insurance 2956
4386	4386	must be included in the total operating expenses in an amount 2957
4387	4387	not to exceed the premium paid during the first 12 months of 2958
4388	4388	facility operation. The operating reserves required under this 2959
4389	4389	subsection must be in an unencumber ed account held in escrow for 2960
4390	4390	the benefit of the residents. Such funds may not be encumbered 2961
4391	4391	or subject to any liens or charges by the escrow agent or 2962
4392	4392	judgments, garnishments, or creditors' claims against the 2963
4393	4393	provider or facility. However, if a facility ha d a lien, 2964
4394	4394	mortgage, trust indenture, or similar debt instrument in place 2965
4395	4395	before January 1, 1993, which encumbered all or any part of the 2966
4396	4396	reserves required by this subsection and such funds were used to 2967
4397	4397	meet the requirements of this subsection, then such ar rangement 2968
4398	4398	may be continued, unless a refinancing or acquisition has 2969
4399	4399	occurred, and the provider is in compliance with this 2970
4400	4400	subsection. 2971
4401	4401	(f)(d) Each provider shall maintain in escrow a renewal 2972
4402	4402	and replacement reserve equal to 15 percent of the total 2973
4403	4403	accumulated depreciation based on the audited financial 2974
4404	4404	statement required to be filed pursuant to s. 651.026, not to 2975
4405	4405
4406	4406	HB 1429 2025
4407	4407
4408	4408
4409	4409
4410	4410	CODING: Words stricken are deletions; words underlined are additions.
4411	4411	hb1429-00
4412	4412	Page 120 of 168
4413	4413	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
4414	4414
4415	4415
4416	4416
4417	4417	exceed 15 percent of the facility's average operating expenses 2976
4418	4418	for the past 3 fiscal years based on the audited financial 2977
4419	4419	statements for each of those years. For a provider who is an 2978
4420	4420	operator of a facility but is not the owner and depreciation is 2979
4421	4421	not included as part of the provider's financial statement, the 2980
4422	4422	renewal and replacement reserve required by this paragraph must 2981
4423	4423	equal 15 percent of the to tal operating expenses of the 2982
4424	4424	provider, as described in this section. Each provider licensed 2983
4425	4425	before October 1, 1983, shall fully fund the renewal and 2984
4426	4426	replacement reserve by October 1, 2003, by multiplying the 2985
4427	4427	difference between the former escrow requiremen t and the present 2986
4428	4428	escrow requirement by the number of years the facility has been 2987
4429	4429	in operation after October 1, 1983. 2988
4430	4430	(3) If principal and interest payments are paid to a trust 2989
4431	4431	that is beneficially held by the residents as described in s. 2990
4432	4432	651.023(6) s. 651.023(7), the office may waive all or any 2991
4433	4433	portion of the escrow requirements for mortgage principal and 2992
4434	4434	interest contained in subsection (1) if the office finds that 2993
4435	4435	such waiver is not inconsistent with the security protections 2994
4436	4436	intended by this chapter. 2995
4437	4437	(7) 2996
4438	4438	(b)1. For all other proposed withdrawals, in order to 2997
4439	4439	receive the consent of the office, the provider must file 2998
4440	4440	documentation showing why the withdrawal is necessary for the 2999
4441	4441	continued operation of the facility and such additional 3000
4442	4442
4443	4443	HB 1429 2025
4444	4444
4445	4445
4446	4446
4447	4447	CODING: Words stricken are deletions; words underlined are additions.
4448	4448	hb1429-00
4449	4449	Page 121 of 168
4450	4450	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
4451	4451
4452	4452
4453	4453
4454	4454	information as the o ffice reasonably requires. 3001
4455	4455	2. The office shall notify the provider when the filing is 3002
4456	4456	deemed complete. If the provider has complied with all prior 3003
4457	4457	requests for information, the filing is deemed complete after 30 3004
4458	4458	days without communication from the office . 3005
4459	4459	3. Within 30 days after the date a file is deemed 3006
4460	4460	complete, the office shall provide the provider with written 3007
4461	4461	notice of its approval or disapproval of the request. The 3008
4462	4462	provider may not withdraw funds until the office provides such 3009
4463	4463	written notice. The office may disapprove any request to 3010
4464	4464	withdraw such funds if it determines that the withdrawal is not 3011
4465	4465	in the best interest of the residents. 3012
4466	4466	(8) The office may order the immediate transfer of up to 3013
4467	4467	100 percent of the funds held in the minimum liquid reser ve to 3014
4468	4468	the custody of the department pursuant to part III of chapter 3015
4469	4469	625 if the office finds that the provider is impaired or 3016
4470	4470	insolvent, or if the facility fails to fund the minimum liquid 3017
4471	4471	reserve required by subsection (10) or subsection (11) . The 3018
4472	4472	office may order such a transfer regardless of whether the 3019
4473	4473	office has suspended or revoked, or intends to suspend or 3020
4474	4474	revoke, the certificate of authority of the provider. 3021
4475	4475	Section 62. Subsection (2) of section 651.043, Florida 3022
4476	4476	Statutes, is amended to read: 3023
4477	4477	651.043 Approval of change in management. — 3024
4478	4478	(2) A provider or management company shall notify the 3025
4479	4479
4480	4480	HB 1429 2025
4481	4481
4482	4482
4483	4483
4484	4484	CODING: Words stricken are deletions; words underlined are additions.
4485	4485	hb1429-00
4486	4486	Page 122 of 168
4487	4487	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
4488	4488
4489	4489
4490	4490
4491	4491	office, in writing or electronically, of any change in the 3026
4492	4492	information required by s. 651.022(2) management within 10 3027
4493	4493	business days. For each new management co mpany or manager not 3028
4494	4494	employed by a management company, the provider shall submit to 3029
4495	4495	the office the information required by s. 651.022(2) and a copy 3030
4496	4496	of the written management contract, if applicable. 3031
4497	4497	Section 63. Subsection (2) of section 651.055, Florid a 3032
4498	4498	Statutes, is amended to read: 3033
4499	4499	651.055 Continuing care contracts; right to rescind. — 3034
4500	4500	(2) A resident has the right to rescind a continuing care 3035
4501	4501	contract and receive a full refund of any funds paid, without 3036
4502	4502	penalty or forfeiture, within 7 days after exe cuting the 3037
4503	4503	contract. However, if an individual signs a reservation contract 3038
4504	4504	pursuant to s. 651.023(3) s. 651.023(4) and fails to cancel such 3039
4505	4505	contract within 30 days after executing the contract and 3040
4506	4506	subsequently signs a residency contract pursuant to this s ection 3041
4507	4507	and rescinds the contract within 7 days, the forfeiture penalty 3042
4508	4508	authorized under s. 651.023(3) s. 651.023(4) may be deducted 3043
4509	4509	from the refund unless there is evidence of extenuating 3044
4510	4510	circumstances such as, but not limited to, the death, illness, 3045
4511	4511	or diagnosis of a chronic or terminal illness of the individual 3046
4512	4512	or the individual's spouse or partner or a change in financial 3047
4513	4513	or asset position which warrants cancellation of the contract. A 3048
4514	4514	resident may not be required to move into the facility 3049
4515	4515	designated in the contract before the expiration of the 7 -day 3050
4516	4516
4517	4517	HB 1429 2025
4518	4518
4519	4519
4520	4520
4521	4521	CODING: Words stricken are deletions; words underlined are additions.
4522	4522	hb1429-00
4523	4523	Page 123 of 168
4524	4524	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
4525	4525
4526	4526
4527	4527
4528	4528	period. During the 7 -day period, the resident's funds must be 3051
4529	4529	held in an escrow account, or the provider may hold the check 3052
4530	4530	until the 7-day period expires pursuant to s. 651.033(3)(c). 3053
4531	4531	Section 64. Subsect ion (1) of section 651.071, Florida 3054
4532	4532	Statutes, is amended to read: 3055
4533	4533	651.071 Contracts as preferred claims on liquidation or 3056
4534	4534	receivership.— 3057
4535	4535	(1) In the event of receivership or liquidation 3058
4536	4536	proceedings against a provider, all continuing care and 3059
4537	4537	continuing care at-home contracts executed by a provider are 3060
4538	4538	deemed preferred claims against all assets owned by the 3061
4539	4539	provider.; however, Such claims are not subordinate to any 3062
4540	4540	secured claim and must be treated with higher priority over all 3063
4541	4541	other claims, except Class 1 claims. For purposes of s. 631.271, 3064
4542	4542	such contracts are deemed Class 2 claims. 3065
4543	4543	Section 65. Subsections (2) and (3) of section 651.085, 3066
4544	4544	Florida Statutes, are amended to read: 3067
4545	4545	651.085 Quarterly meetings between residents and the 3068
4546	4546	governing body of the provider; resident representation before 3069
4547	4547	the governing body of the provider. — 3070
4548	4548	(2) A residents' council formed pursuant to s. 651.081, 3071
4549	4549	members of which are elected by the residents, shall nominate 3072
4550	4550	and elect a designated resident representative to represent them 3073
4551	4551	before the governing body of the provider on matters specified 3074
4552	4552	in subsection (3). The initial designated resident 3075
4553	4553
4554	4554	HB 1429 2025
4555	4555
4556	4556
4557	4557
4558	4558	CODING: Words stricken are deletions; words underlined are additions.
4559	4559	hb1429-00
4560	4560	Page 124 of 168
4561	4561	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
4562	4562
4563	4563
4564	4564
4565	4565	representative elected under this section shall be elected to 3076
4566	4566	serve at least 12 months. The designated resident representative 3077
4567	4567	does not have to be a current member of the residents' council; 3078
4568	4568	however, such individua l must be a resident, as defined in s. 3079
4569	4569	651.011. Designated resident representatives shall perform their 3080
4570	4570	duties in good faith. For providers that own or operate more 3081
4571	4571	than one facility in the state, each facility must have its own 3082
4572	4572	designated resident represe ntative. 3083
4573	4573	(3) The designated resident representative shall be 3084
4574	4574	notified in writing or electronically by a representative of the 3085
4575	4575	provider at least 14 days in advance of any meeting of the full 3086
4576	4576	governing body at which the annual budget and proposed changes 3087
4577	4577	or increases in resident fees or services are on the agenda or 3088
4578	4578	will be discussed before presenting the increases in resident 3089
4579	4579	fees or services to all residents . The designated resident 3090
4580	4580	representative shall be invited to attend and participate in 3091
4581	4581	that portion of the meeting designated for the discussion of 3092
4582	4582	such changes. Designated resident representatives shall perform 3093
4583	4583	their duties in good faith. For providers that own or operate 3094
4584	4584	more than one facility in the state, each facility must have its 3095
4585	4585	own designated resident representative. 3096
4586	4586	Section 66. Section 651.087, Florida Statutes, is created 3097
4587	4587	to read: 3098
4588	4588	651.087 Resident funds for charitable or operational 3099
4589	4589	purposes.— 3100
4590	4590
4591	4591	HB 1429 2025
4592	4592
4593	4593
4594	4594
4595	4595	CODING: Words stricken are deletions; words underlined are additions.
4596	4596	hb1429-00
4597	4597	Page 125 of 168
4598	4598	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
4599	4599
4600	4600
4601	4601
4602	4602	(1) The organized collection and distribution of funds by 3101
4603	4603	residents for charitable or benevol ent purposes may not be under 3102
4604	4604	the control of a provider or management company. Any provider or 3103
4605	4605	management company assisting in the collection or distribution 3104
4606	4606	of funds from its residents for the purpose of creating a 3105
4607	4607	benevolence or charitable fund, and whic h is outside the 3106
4608	4608	approved operational fees, is subject to the following 3107
4609	4609	requirements: 3108
4610	4610	(a) The provider must notify the office and the residents' 3109
4611	4611	council that a fund is being established. 3110
4612	4612	(b) The provider, under the direction and approval of the 3111
4613	4613	residents' council, must establish written policies that govern 3112
4614	4614	the funds. The written policies must include, in detail, how the 3113
4615	4615	entity will be governed, the collection of funds, and the 3114
4616	4616	criteria to be used for the distribution of funds. Any changes 3115
4617	4617	to the written policy must be agreed upon by the residents' 3116
4618	4618	council. 3117
4619	4619	(c) Within 60 days after the fund is established, the 3118
4620	4620	provider must provide the written policy to the office and 3119
4621	4621	current residents and post it in a prominent position in the 3120
4622	4622	facility which is ac cessible to all residents and the general 3121
4623	4623	public. Additionally, the written policy must be given to all 3122
4624	4624	prospective residents. 3123
4625	4625	(d) The provider must include in its annual and quarterly 3124
4626	4626	reports a statement detailing the financial position of the fund 3125
4627	4627
4628	4628	HB 1429 2025
4629	4629
4630	4630
4631	4631
4632	4632	CODING: Words stricken are deletions; words underlined are additions.
4633	4633	hb1429-00
4634	4634	Page 126 of 168
4635	4635	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
4636	4636
4637	4637
4638	4638
4639	4639	as of the annual or quarter period end date and a summary 3126
4640	4640	breakdown of how any funds were used during that reporting 3127
4641	4641	period, excluding any personally identifiable information. 3128
4642	4642	(2) A provider may not borrow or solicit funds from 3129
4643	4643	residents for operationa l purposes without prior written 3130
4644	4644	approval from the office. 3131
4645	4645	(a) Before any funds are eligible for distribution to the 3132
4646	4646	provider, the provider must submit to the office: 3133
4647	4647	1. A request to borrow funds, with notice to the 3134
4648	4648	residents' council, which must inc lude the requested amount, a 3135
4649	4649	detailed summary of the intended use of the funds, and any 3136
4650	4650	additional information that supports the provider's need to 3137
4651	4651	borrow funds from the residents. The requested amount may not 3138
4652	4652	exceed 10 percent of the funds available from residents and 3139
4653	4653	shall be restricted to use for only operational expenses, which 3140
4654	4654	must solely benefit the residents of the facility. Funds may not 3141
4655	4655	be used for the benefit of management, the board of directors, 3142
4656	4656	or the general partner. 3143
4657	4657	2. An anticipated payme nt schedule for repayment of the 3144
4658	4658	borrowed funds. Full repayment shall be completed within 12 3145
4659	4659	months after the distribution. 3146
4660	4660	3. A board resolution and sworn affidavit signed by two 3147
4661	4661	officers or the general partner of the provider which indicates 3148
4662	4662	support for the request to borrow funds and the repayment plan. 3149
4663	4663	(b) Within 30 days after receipt of the borrowed funds, 3150
4664	4664
4665	4665	HB 1429 2025
4666	4666
4667	4667
4668	4668
4669	4669	CODING: Words stricken are deletions; words underlined are additions.
4670	4670	hb1429-00
4671	4671	Page 127 of 168
4672	4672	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
4673	4673
4674	4674
4675	4675
4676	4676	the provider shall begin repayment to the fund in equal monthly 3151
4677	4677	payments that allow for a complete funding of the borrowed funds 3152
4678	4678	within 12 months. 3153
4679	4679	(c) The provider must acknowledge that it is required to 3154
4680	4680	repay the full amount borrowed before the office may approve 3155
4681	4681	additional funds to be borrowed from residents. 3156
4682	4682	(d) The office shall receive written majority support from 3157
4683	4683	the residents' council before approving the provider's request. 3158
4684	4684	(3) Upon receipt of approval from the office, the provider 3159
4685	4685	shall comply with the following: 3160
4686	4686	(a) Maintain a 50 percent operating reserve pursuant to s. 3161
4687	4687	651.035(1)(c)4. for the duration of the repayment period. 3162
4688	4688	Following the repayment period, the provider must obtain the 3163
4689	4689	office's prior written approval to reduce the operating reserve 3164
4690	4690	amount. 3165
4691	4691	(b) Within 5 days after receiving the office's approval, 3166
4692	4692	submit supporting documentation to the office as evidence that 3167
4693	4693	the operating reserve has been increased in compliance with this 3168
4694	4694	section. 3169
4695	4695	(c) In order to protect the residents' investment, 3170
4696	4696	immediately transfer up to 100 percent of the funds held in the 3171
4697	4697	minimum liquid reserve operating reserve account to the custody 3172
4698	4698	of the department pursuant to part III of chapter 625. The 3173
4699	4699	provider shall fund the account with the department within 15 3174
4700	4700	days after receiving the office's approval. The office may not 3175
4701	4701
4702	4702	HB 1429 2025
4703	4703
4704	4704
4705	4705
4706	4706	CODING: Words stricken are deletions; words underlined are additions.
4707	4707	hb1429-00
4708	4708	Page 128 of 168
4709	4709	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
4710	4710
4711	4711
4712	4712
4713	4713	approve the provider's request unless it has confirmation that 3176
4714	4714	the provider has established the account with the department. 3177
4715	4715	(4) Any provider that has benevolent or charitable funds 3178
4716	4716	established before July 1, 2025, shall fully comply with this 3179
4717	4717	section by October 1, 2025. 3180
4718	4718	(5) Any provider that has borrowed funds from reside nts 3181
4719	4719	before July 1, 2025, shall provide notice to the office by 3182
4720	4720	October 1, 2025. Notice must include the date the funds were 3183
4721	4721	borrowed, the amount borrowed, and any documentation supporting 3184
4722	4722	the request and approval of the borrowed funds. 3185
4723	4723	(6) In the event that a provider triggers an impairment or 3186
4724	4724	insolvency or enters into a forbearance agreement with a lender, 3187
4725	4725	the repayment of any outstanding borrowed funds shall be 3188
4726	4726	accelerated. Within 5 days after a provider becomes aware of an 3189
4727	4727	impairment or insolvency or the need to enter into a forbearance 3190
4728	4728	agreement with a lender, the provider shall provide notice of 3191
4729	4729	the triggering event to the residents' council and repay any 3192
4730	4730	outstanding amounts due under a repayment plan. Notice must also 3193
4731	4731	be given to the office within t he same 5 days. 3194
4732	4732	(7) Failure to comply with this section is a violation of 3195
4733	4733	s. 651.035, and the provider will be considered impaired 3196
4734	4734	pursuant to s. 651.011(16). 3197
4735	4735	(8) The commission may by rule require all or part of the 3198
4736	4736	statements or filings required unde r this section to be 3199
4737	4737	submitted by electronic means in a computer -readable form 3200
4738	4738
4739	4739	HB 1429 2025
4740	4740
4741	4741
4742	4742
4743	4743	CODING: Words stricken are deletions; words underlined are additions.
4744	4744	hb1429-00
4745	4745	Page 129 of 168
4746	4746	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
4747	4747
4748	4748
4749	4749
4750	4750	compatible with the electronic data format specified by the 3201
4751	4751	commission. 3202
4752	4752	Section 67. Paragraphs (h) through (n) of subsection (2) 3203
4753	4753	of section 651.091, Florida Statutes, are re designated as 3204
4754	4754	paragraphs (i) through (o), respectively, present paragraph (h) 3205
4755	4755	of subsection (2) and paragraph (d) of subsection (3) are 3206
4756	4756	amended, a new paragraph (h) and paragraph (p) are added to 3207
4757	4757	subsection (2), and subsection (5) is added to that section, to 3208
4758	4758	read: 3209
4759	4759	651.091 Availability, distribution, and posting of reports 3210
4760	4760	and records; requirement of full disclosure. — 3211
4761	4761	(2) Every continuing care facility shall: 3212
4762	4762	(h) Post a notice of any bankruptcy proceedings in a 3213
4763	4763	prominent location within the facility which is accessible to 3214
4764	4764	all residents and the general public. Such notice must include a 3215
4765	4765	summary of the bankruptcy proceedings and specify where the full 3216
4766	4766	legal record of the bankruptcy proceedings can be inspected 3217
4767	4767	within the facility. The facility shall als o designate and make 3218
4768	4768	available a management representative to discuss the bankruptcy 3219
4769	4769	proceedings and address questions from residents. The notice 3220
4770	4770	required under this paragraph must also include a listing of all 3221
4771	4771	court documents related to the bankruptcy pro ceedings and the 3222
4772	4772	designated representative's contact information. 3223
4773	4773	(i)(h) Deliver the information described in s. 651.085(4) 3224
4774	4774	in writing or electronically to the president or chair of the 3225
4775	4775
4776	4776	HB 1429 2025
4777	4777
4778	4778
4779	4779
4780	4780	CODING: Words stricken are deletions; words underlined are additions.
4781	4781	hb1429-00
4782	4782	Page 130 of 168
4783	4783	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
4784	4784
4785	4785
4786	4786
4787	4787	residents' council and make supporting documentation available 3226
4788	4788	upon request. 3227
4789	4789	(p) Maintain records showing compliance with the 3228
4790	4790	requirements of this subsection, including how, where, and when 3229
4791	4791	the required information was provided. 3230
4792	4792	(3) Before entering into a contract to furnish continuing 3231
4793	4793	care or continuing care at -home, the provider undertaking to 3232
4794	4794	furnish the care, or the agent of the provider, shall make full 3233
4795	4795	disclosure, obtain written acknowledgment of receipt, and 3234
4796	4796	provide copies of the disclosure documents to the prospective 3235
4797	4797	resident or his or her legal representative, of the following 3236
4798	4798	information: 3237
4799	4799	(d) In keeping with the intent of this subsection relating 3238
4800	4800	to disclosure, the provider shall make available for review : 3239
4801	4801	1. Master plans approved by the provider's board or 3240
4802	4802	governing body; 3241
4803	4803	2. Any proposed or approved and any plans for expansion or 3242
4804	4804	phased development within the next 3 years; and 3243
4805	4805	3. Any known legal impediments to the plans disclosed in 3244
4806	4806	subparagraphs 1. and 2., including, but not limited to, pending 3245
4807	4807	legal action to stop or modify the plans, the denial of building 3246
4808	4808	permits, or a failure to secure financing , to the extent that 3247
4809	4809	the availability of such plans does not put at risk real estate, 3248
4810	4810	financing, acquisition, negotiations, or other implementation of 3249
4811	4811	operational plans and thus jeopardize the success of 3250
4812	4812
4813	4813	HB 1429 2025
4814	4814
4815	4815
4816	4816
4817	4817	CODING: Words stricken are deletions; words underlined are additions.
4818	4818	hb1429-00
4819	4819	Page 131 of 168
4820	4820	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
4821	4821
4822	4822
4823	4823
4824	4824	negotiations, operations, and development . 3251
4825	4825	(5)(a) A provider that enters into a contract for 3252
4826	4826	continuing care at a facility without first delivering a true 3253
4827	4827	and complete copy of the full disclosure document to the 3254
4828	4828	contracting party, or that enters into a con tract based on a 3255
4829	4829	disclosure document that omits a material fact required to be 3256
4830	4830	stated or necessary to prevent misleading statements, is liable 3257
4831	4831	for actual damages and any interest thereon, reasonable attorney 3258
4832	4832	fees, and court costs and shall refund fees paid to the 3259
4833	4833	contracting party. However, the provider shall deduct the 3260
4834	4834	contractual value of care and lodging provided before the 3261
4835	4835	violation, misstatement, or omission was discovered or should 3262
4836	4836	have reasonably been discovered from the fees to be refunded to 3263
4837	4837	the contracting party. 3264
4838	4838	(b) This section applies regardless of whether the 3265
4839	4839	provider had actual knowledge of the misstatement or omission. 3266
4840	4840	(c) A person may not file or maintain an action under this 3267
4841	4841	section if, before filing the action, the person received a 3268
4842	4842	written offer citing this section for a refund of all amounts 3269
4843	4843	paid the provider, plus interest at the prime rate, less the 3270
4844	4844	contractual value of care and lodging provided before receipt of 3271
4845	4845	the offer, and failed to accept it within 30 days after actual 3272
4846	4846	receipt. 3273
4847	4847	Section 68. Section 651.104, Florida Statutes, is created 3274
4848	4848	to read: 3275
4849	4849
4850	4850	HB 1429 2025
4851	4851
4852	4852
4853	4853
4854	4854	CODING: Words stricken are deletions; words underlined are additions.
4855	4855	hb1429-00
4856	4856	Page 132 of 168
4857	4857	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
4858	4858
4859	4859
4860	4860
4861	4861	651.104 Certificate of authority to act as a management 3276
4862	4862	company.— 3277
4863	4863	(1) It is unlawful for any person to act as or hold 3278
4864	4864	himself or herself out to be management company for a continu ing 3279
4865	4865	care retirement community in this state without a valid 3280
4866	4866	certificate of authority issued by the office pursuant to this 3281
4867	4867	section. A management company that was operating in this state 3282
4868	4868	as of June 30, 2025, may continue to operate until January 1, 3283
4869	4869	2026, as a management company without a certificate of authority 3284
4870	4870	and is not in violation of the requirement to possess a valid 3285
4871	4871	certificate of authority as a management company during that 3286
4872	4872	period of time. To qualify for and hold authority to act as a 3287
4873	4873	management company in this state, a management company must 3288
4874	4874	otherwise be in compliance pursuant to this section and with its 3289
4875	4875	organizational agreement. A person who, on or after January 1, 3290
4876	4876	2026, does not hold a certificate of authority to act as a 3291
4877	4877	management company whil e operating as a management company is 3292
4878	4878	subject to a fine of $10,000 per violation per day. 3293
4879	4879	(2) A management company shall file with the office an 3294
4880	4880	application for a certificate of authority on a form adopted by 3295
4881	4881	the commission and furnished by the office. The application must 3296
4882	4882	include or have attached the following information and 3297
4883	4883	documents: 3298
4884	4884	(a) All basic organizational documents of the management 3299
4885	4885	company, such as the articles of incorporation, articles of 3300
4886	4886
4887	4887	HB 1429 2025
4888	4888
4889	4889
4890	4890
4891	4891	CODING: Words stricken are deletions; words underlined are additions.
4892	4892	hb1429-00
4893	4893	Page 133 of 168
4894	4894	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
4895	4895
4896	4896
4897	4897
4898	4898	association, partnership agreement, trade name cer tificate, 3301
4899	4899	trust agreement, shareholder agreement, and other applicable 3302
4900	4900	documents, and all amendments to those documents. 3303
4901	4901	(b) The bylaws, rules, and regulations or similar 3304
4902	4902	documents regulating the conduct or the internal affairs of the 3305
4903	4903	management company. 3306
4904	4904	(c) The names, addresses, official positions, and 3307
4905	4905	professional qualifications of the individuals employed or 3308
4906	4906	retained by the management company who are responsible for the 3309
4907	4907	conduct of the affairs of the management company, including all 3310
4908	4908	members of the board of directors, board of trustees, executive 3311
4909	4909	committee, or other governing board or committee, and the 3312
4910	4910	principal officers, or equivalent, or for a partnership or 3313
4911	4911	association of the management company, the partners or members. 3314
4912	4912	(d) Audited annual financi al statements, prepared in 3315
4913	4913	accordance with generally accepted accounting principles, for 3316
4914	4914	the 2 most recent fiscal years, which prove that the applicant 3317
4915	4915	has a positive net worth in both fiscal years. If the applicant 3318
4916	4916	has been in existence for less than 2 fi scal years, the 3319
4917	4917	application must include financial statements or reports, 3320
4918	4918	certified by an officer of the applicant and prepared in 3321
4919	4919	accordance with generally accepted accounting principles, for 3322
4920	4920	any completed fiscal years and for any month during the current 3323
4921	4921	fiscal year for which such financial statements or reports have 3324
4922	4922	been completed. If the applicant reports net losses for either 3325
4923	4923
4924	4924	HB 1429 2025
4925	4925
4926	4926
4927	4927
4928	4928	CODING: Words stricken are deletions; words underlined are additions.
4929	4929	hb1429-00
4930	4930	Page 134 of 168
4931	4931	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
4932	4932
4933	4933
4934	4934
4935	4935	of the 2 most recent fiscal years, the applicant must provide 3326
4936	4936	pro forma financial statements up to the period of time that the 3327
4937	4937	applicant demonstrates 2 consecutive years of profitability. Pro 3328
4938	4938	forma financial statements must include the balance sheet, 3329
4939	4939	income statement, and cash flow statement. An audited financial 3330
4940	4940	statement or report prepared on a consolidated basis must 3331
4941	4941	include a columnar consolidating or combining worksheet that 3332
4942	4942	must be filed with the report and comply with the following: 3333
4943	4943	1. Amounts shown on the consolidated audited financial 3334
4944	4944	report must be shown on the worksheet; 3335
4945	4945	2. Amounts for each entity must be stated separately; and 3336
4946	4946	3. Explanations of consolidating and eliminating entries 3337
4947	4947	must be included. 3338
4948	4948	(e) Any information as the office may require in order to 3339
4949	4949	review the current financial condition of the applicant. 3340
4950	4950	(f) A statement describing the business plan , including 3341
4951	4951	information on staffing levels and activities proposed or 3342
4952	4952	ongoing, in this state and nationwide. The plan must provide 3343
4953	4953	details setting forth the applicant's capability of providing a 3344
4954	4954	sufficient number of experienced and qualified personnel in t he 3345
4955	4955	areas of issuing continuing care life contracts and managing 3346
4956	4956	continuing care retirement communities or similar communities, 3347
4957	4957	compliance with statutory requirements, and claims processing, 3348
4958	4958	recordkeeping, and underwriting. 3349
4959	4959	(g) If the applicant is not cur rently acting as a 3350
4960	4960
4961	4961	HB 1429 2025
4962	4962
4963	4963
4964	4964
4965	4965	CODING: Words stricken are deletions; words underlined are additions.
4966	4966	hb1429-00
4967	4967	Page 135 of 168
4968	4968	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
4969	4969
4970	4970
4971	4971
4972	4972	management company, a statement of the amounts and sources of 3351
4973	4973	the funds available for organization expenses and the proposed 3352
4974	4974	arrangements for reimbursement and compensation of incorporators 3353
4975	4975	or other principals. 3354
4976	4976	(h) Such other data, fin ancial statements, and pertinent 3355
4977	4977	information as the commission or office may reasonably require 3356
4978	4978	with respect to the management company, its directors, or its 3357
4979	4979	trustees, or with respect to any parent, subsidiary, or 3358
4980	4980	affiliate, if the management company relie s on a contractual or 3359
4981	4981	financial relationship with such parent, subsidiary, or 3360
4982	4982	affiliate in order to meet the financial requirements of this 3361
4983	4983	chapter, to determine the financial status of the management 3362
4984	4984	company and the management capabilities of its managers and 3363
4985	4985	owners. 3364
4986	4986	(3) An applicant must also submit all of the following for 3365
4987	4987	all individuals referenced in paragraph (2)(c): 3366
4988	4988	(a) A complete biographical statement on a form prescribed 3367
4989	4989	by the commission. 3368
4990	4990	(b) An independent background report as prescribed b y the 3369
4991	4991	commission. 3370
4992	4992	(c) A full set of fingerprints to the office or to a 3371
4993	4993	vendor, entity, or agency authorized by s. 943.053(13). The 3372
4994	4994	office, vendor, entity, or agency, as applicable, shall forward 3373
4995	4995	the fingerprints to the Department of Law Enforcement for state 3374
4996	4996	processing, and the Department of Law Enforcement shall forward 3375
4997	4997
4998	4998	HB 1429 2025
4999	4999
5000	5000
5001	5001
5002	5002	CODING: Words stricken are deletions; words underlined are additions.
5003	5003	hb1429-00
5004	5004	Page 136 of 168
5005	5005	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
5006	5006
5007	5007
5008	5008
5009	5009	the fingerprints to the Federal Bureau of Investigation for 3376
5010	5010	national processing in accordance with s. 943.053 and 28 C.F.R. 3377
5011	5011	s. 20. 3378
5012	5012	(d) A self-disclosure of any administrative, civil, or 3379
5013	5013	criminal complaints, settlements, or discipline of the 3380
5014	5014	applicant, or any of the applicant's affiliates, which relates 3381
5015	5015	to a violation of the insurance laws or continuing care 3382
5016	5016	retirement community laws, in any state. 3383
5017	5017	(4)(a) The applicant shall make available for inspection 3384
5018	5018	by the office copies of all contracts and contract templates 3385
5019	5019	relating to services provided by the management company to 3386
5020	5020	providers or other persons using the services of the management 3387
5021	5021	company. 3388
5022	5022	(b) The applicant shall also make available for inspection 3389
5023	5023	by the office copies of all contracts and contract templates 3390
5024	5024	with any provider. 3391
5025	5025	(5) The office may not issue a certificate of authority if 3392
5026	5026	it determines that the management company or any individual 3393
5027	5027	specified in paragraph (2)(c) is not competent, trustwort hy, 3394
5028	5028	financially responsible, or of good personal and business 3395
5029	5029	reputation. 3396
5030	5030	(6) A certificate of authority issued under this section 3397
5031	5031	remains valid, unless suspended or revoked by the office, so 3398
5032	5032	long as the certificateholder continues in business in this 3399
5033	5033	state. 3400
5034	5034
5035	5035	HB 1429 2025
5036	5036
5037	5037
5038	5038
5039	5039	CODING: Words stricken are deletions; words underlined are additions.
5040	5040	hb1429-00
5041	5041	Page 137 of 168
5042	5042	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
5043	5043
5044	5044
5045	5045
5046	5046	Section 69. Section 651.1041, Florida Statutes, is created 3401
5047	5047	to read: 3402
5048	5048	651.1041 Acquisition of a management company. —An 3403
5049	5049	acquisition of a management company is governed by s. 628.4615 3404
5050	5050	as if the company were a specialty insurer. 3405
5051	5051	Section 70. Section 651.1043, Florida Statutes, is created 3406
5052	5052	to read: 3407
5053	5053	651.1043 Management company annual and quarterly financial 3408
5054	5054	statements; notice of change of ownership; fines for 3409
5055	5055	noncompliance.— 3410
5056	5056	(1) Each authorized management company shall annually file 3411
5057	5057	with the office a full and true statement of its financial 3412
5058	5058	condition, transactions, and affairs within 3 months after the 3413
5059	5059	end of the management company's fiscal year or within such 3414
5060	5060	extension of time as the office may grant for good cause. The 3415
5061	5061	statement must be for the p receding fiscal year and must be in 3416
5062	5062	such form and contain such matters as the commission prescribes 3417
5063	5063	and must be verified by at least two officers of the management 3418
5064	5064	company. 3419
5065	5065	(2) Each authorized management company shall also annually 3420
5066	5066	file an audited financ ial statement prepared in accordance with 3421
5067	5067	generally accepted accounting principles by an independent 3422
5068	5068	certified public accountant. The audited financial statement 3423
5069	5069	must be filed with the office within 3 months after the end of 3424
5070	5070	the management company's fiscal year and be for the preceding 3425
5071	5071
5072	5072	HB 1429 2025
5073	5073
5074	5074
5075	5075
5076	5076	CODING: Words stricken are deletions; words underlined are additions.
5077	5077	hb1429-00
5078	5078	Page 138 of 168
5079	5079	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
5080	5080
5081	5081
5082	5082
5083	5083	fiscal year. An audited financial statement prepared on a 3426
5084	5084	consolidated basis must include a columnar consolidating or 3427
5085	5085	combining worksheet that must be filed with the statement and 3428
5086	5086	must comply with all of the following: 3429
5087	5087	(a) Amounts shown on the consolidated audited financial 3430
5088	5088	statement must be shown on the worksheet. 3431
5089	5089	(b) Amounts for each entity must be stated separately. 3432
5090	5090	(c) Explanations of consolidating and eliminating entries 3433
5091	5091	must be included. 3434
5092	5092	(3) For the purpose of de termining the financial status of 3435
5093	5093	the management company and the management capabilities of its 3436
5094	5094	managers and owners, the management company must submit such 3437
5095	5095	other data, financial statements, and pertinent information as 3438
5096	5096	the commission or office may reasona bly require with respect to 3439
5097	5097	the management company, its directors, or its trustees, or with 3440
5098	5098	respect to any parent, subsidiary, or affiliate if the 3441
5099	5099	management company relies on a contractual or financial 3442
5100	5100	relationship with such parent, subsidiary, or affilia te in order 3443
5101	5101	to meet the financial requirements of this chapter. 3444
5102	5102	(4) For any material change in its ownership, a management 3445
5103	5103	company shall file an acquisition application as required by s. 3446
5104	5104	651.024. 3447
5105	5105	(5) Within 45 days after the end of each fiscal quarter, 3448
5106	5106	each management company shall file a quarterly unaudited 3449
5107	5107	financial statement in the form prescribed by commission rule. 3450
5108	5108
5109	5109	HB 1429 2025
5110	5110
5111	5111
5112	5112
5113	5113	CODING: Words stricken are deletions; words underlined are additions.
5114	5114	hb1429-00
5115	5115	Page 139 of 168
5116	5116	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
5117	5117
5118	5118
5119	5119
5120	5120	(6) If the office finds that such information is needed to 3451
5121	5121	properly monitor the financial condition of a management company 3452
5122	5122	or is otherwise needed to protect the public interest, the 3453
5123	5123	office may require the management company to file: 3454
5124	5124	(a) Within 25 days after the end of each month, a monthly 3455
5125	5125	unaudited financial statement of the management company in the 3456
5126	5126	form prescribed by the commissi on by rule. 3457
5127	5127	(b) For the purpose of determining the financial status of 3458
5128	5128	the management company and the management capabilities of its 3459
5129	5129	managers and owners, such other data, financial statements, and 3460
5130	5130	pertinent information as the office may reasonably requir e with 3461
5131	5131	respect to the management company, its directors, or its 3462
5132	5132	trustees, or with respect to any parent, subsidiary, or 3463
5133	5133	affiliate if the management company relies on a contractual or 3464
5134	5134	financial relationship with such parent, subsidiary, or 3465
5135	5135	affiliate in order to meet the financial requirements of this 3466
5136	5136	chapter. 3467
5137	5137	(7) Any management company that fails to file an annual 3468
5138	5138	financial report or quarterly financial report in the form and 3469
5139	5139	within the time required by this section shall forfeit to the 3470
5140	5140	office an amount set by order of the office which does not 3471
5141	5141	exceed $1,000 for each of the first 10 days of noncompliance and 3472
5142	5142	does not exceed $2,000 for each subsequent day of noncompliance. 3473
5143	5143	Upon notice by the office that the management company is not in 3474
5144	5144	compliance with this s ection, the management company's authority 3475
5145	5145
5146	5146	HB 1429 2025
5147	5147
5148	5148
5149	5149
5150	5150	CODING: Words stricken are deletions; words underlined are additions.
5151	5151	hb1429-00
5152	5152	Page 140 of 168
5153	5153	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
5154	5154
5155	5155
5156	5156
5157	5157	to perform in the capacity of a management company for any 3476
5158	5158	provider or facility in this state ceases until the office 3477
5159	5159	determines the management company to be in compliance. The 3478
5160	5160	office may not collect more than $10 0,000 under this subsection 3479
5161	5161	with respect to any particular report. 3480
5162	5162	(8) All moneys collected by the office under this section 3481
5163	5163	must be deposited to the credit of the Insurance Regulatory 3482
5164	5164	Trust Fund. 3483
5165	5165	(9) The commission may by rule require all or part of t he 3484
5166	5166	statements or filings required under this section to be 3485
5167	5167	submitted by electronic means in a computer -readable form 3486
5168	5168	compatible with the electronic data format specified by the 3487
5169	5169	commission. 3488
5170	5170	Section 71. Section 651.1045, Florida Statutes, is created 3489
5171	5171	to read: 3490
5172	5172	651.1045 Management company grounds for discretionary 3491
5173	5173	denial, suspension, or revocation of certificate of authority. — 3492
5174	5174	(1) The office may deny an application or suspend or 3493
5175	5175	revoke the certificate of authority of any applicant or 3494
5176	5176	management company i f it finds that any one or more of the 3495
5177	5177	following grounds applicable to the applicant or management 3496
5178	5178	company exist: 3497
5179	5179	(a) Failing to continue to meet the requirements for the 3498
5180	5180	certificate of authority originally granted. 3499
5181	5181	(b) Failing to meet one or more of t he qualifications for 3500
5182	5182
5183	5183	HB 1429 2025
5184	5184
5185	5185
5186	5186
5187	5187	CODING: Words stricken are deletions; words underlined are additions.
5188	5188	hb1429-00
5189	5189	Page 141 of 168
5190	5190	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
5191	5191
5192	5192
5193	5193
5194	5194	the certificate of authority under this chapter. 3501
5195	5195	(c) Making a material misstatement or misrepresentation to 3502
5196	5196	obtain the certificate of authority or committing fraud in 3503
5197	5197	obtaining or in attempting to obtain the certificate of 3504
5198	5198	authority. 3505
5199	5199	(d) Demonstrating a lack of fitness or trustworthiness. 3506
5200	5200	(e) Engaging in fraudulent or dishonest practices of 3507
5201	5201	management in the conduct of business. 3508
5202	5202	(f) Misappropriating, converting, or withholding moneys. 3509
5203	5203	(g) Failing to comply with, or violating, any lawful order 3510
5204	5204	or rule issued by the office or commission or violating any 3511
5205	5205	provision of this chapter. 3512
5206	5206	(h) Becoming insolvent or financially impaired or 3513
5207	5207	conducting business in a manner that poses a risk to the public. 3514
5208	5208	(i) Refusing to be exa mined or to produce accounts, 3515
5209	5209	records, and files for examination, refusing to give information 3516
5210	5210	with respect to its affairs, or refusing to perform any other 3517
5211	5211	legal obligation under this chapter when required by the office. 3518
5212	5212	(j) Failing to comply with the r equirements of s. 3519
5213	5213	651.1043. 3520
5214	5214	(k) Failing to maintain full compliance with escrow 3521
5215	5215	accounts or funds as required by this chapter, if responsible 3522
5216	5216	for the day-to-day operations of the provider. 3523
5217	5217	(l) Failing to meet the requirements of this chapter for 3524
5218	5218	disclosure of information to residents concerning the facility, 3525
5219	5219
5220	5220	HB 1429 2025
5221	5221
5222	5222
5223	5223
5224	5224	CODING: Words stricken are deletions; words underlined are additions.
5225	5225	hb1429-00
5226	5226	Page 142 of 168
5227	5227	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
5228	5228
5229	5229
5230	5230
5231	5231	its ownership, its management, its development, or its financial 3526
5232	5232	condition, or failing to honor its continuing care or continuing 3527
5233	5233	care at-home contracts, if responsible for the day -to-day 3528
5234	5234	operations of the provider. 3529
5235	5235	(m) Having any cause for which issuance of the license 3530
5236	5236	could have been denied had it then existed and been known to the 3531
5237	5237	office. 3532
5238	5238	(n) Having owners, managers, officers, or directors who 3533
5239	5239	have been found guilty of, or have pleaded guilty or nolo 3534
5240	5240	contendere to, a felony in this state or any other state, 3535
5241	5241	regardless of whether a judgment or conviction was entered by 3536
5242	5242	the court having jurisdiction of such cases. 3537
5243	5243	(o) Engaging in unfair methods of competition or in unfair 3538
5244	5244	or deceptive acts or p ractices prohibited under part IX of 3539
5245	5245	chapter 626. 3540
5246	5246	(p) Demonstrating a pattern of bankrupt enterprises. 3541
5247	5247	(q) Including in ownership, control, or management any 3542
5248	5248	person who: 3543
5249	5249	1. Is not reputable and of responsible character; 3544
5250	5250	2. Is so lacking in manageme nt expertise as to make the 3545
5251	5251	operation of the provider hazardous to potential and existing 3546
5252	5252	residents; 3547
5253	5253	3. Is so lacking in management experience, ability, and 3548
5254	5254	standing as to jeopardize the reasonable promise of successful 3549
5255	5255	operation; 3550
5256	5256
5257	5257	HB 1429 2025
5258	5258
5259	5259
5260	5260
5261	5261	CODING: Words stricken are deletions; words underlined are additions.
5262	5262	hb1429-00
5263	5263	Page 143 of 168
5264	5264	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
5265	5265
5266	5266
5267	5267
5268	5268	4. Is affiliated, dir ectly or indirectly, through 3551
5269	5269	ownership or control, with any person whose business operations 3552
5270	5270	are or have been marked by business practices or conduct that is 3553
5271	5271	detrimental to the public, contract holders, investors, or 3554
5272	5272	creditors; by manipulation of assets, f inances, or accounts; or 3555
5273	5273	by bad faith; or 3556
5274	5274	5. Has business operations marked by business practices or 3557
5275	5275	conduct that is detrimental to the public, contract holders, 3558
5276	5276	investors, or creditors; by manipulation of assets, finances, or 3559
5277	5277	accounts; or by bad faith. 3560
5278	5278	(r) Failing to file a notice of change in management, 3561
5279	5279	failing to remove a disapproved manager, or persisting in 3562
5280	5280	appointing disapproved managers. 3563
5281	5281	(2) Revocation of a management company's certificate of 3564
5282	5282	authority under this section does not relieve a pro vider of the 3565
5283	5283	provider's obligation to residents under the terms and 3566
5284	5284	conditions of any continuing care or continuing care at -home 3567
5285	5285	contract between the provider and residents or this chapter. The 3568
5286	5286	management company shall continue to file its annual statement 3569
5287	5287	and pay license fees to the office as required under this 3570
5288	5288	chapter as if the certificate of authority had continued in full 3571
5289	5289	force, but the management company may not issue any new 3572
5290	5290	contracts on behalf of a provider. 3573
5291	5291	(3) The office may seek an action in th e circuit court of 3574
5292	5292	the Second Judicial Circuit, in and for Leon County, to enforce 3575
5293	5293
5294	5294	HB 1429 2025
5295	5295
5296	5296
5297	5297
5298	5298	CODING: Words stricken are deletions; words underlined are additions.
5299	5299	hb1429-00
5300	5300	Page 144 of 168
5301	5301	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
5302	5302
5303	5303
5304	5304
5305	5305	the office's order and the provisions of this section. 3576
5306	5306	Section 72. Subsections (1), (4), (5), and (6) of section 3577
5307	5307	651.105, Florida Statutes, are amended to read: 3578
5308	5308	651.105 Examination.— 3579
5309	5309	(1) The office may at any time, and shall at least once 3580
5310	5310	every 3 years, examine the business of any applicant for a 3581
5311	5311	certificate of authority and any provider or management company 3582
5312	5312	engaged in the execution of care contracts or engaged in th e 3583
5313	5313	performance of obligations under such contracts, in the same 3584
5314	5314	manner as is provided for the examination of insurance companies 3585
5315	5315	pursuant to ss. 624.316 and 624.318. For a provider or 3586
5316	5316	management company as deemed accredited under s. 651.028, such 3587
5317	5317	examinations must take place at least once every 5 years. An 3588
5318	5318	examination covering the preceding 3 or 5 fiscal years of the 3589
5319	5319	provider or management company , as applicable, must be commenced 3590
5320	5320	within 12 months after the end of the most recent fiscal year 3591
5321	5321	covered by the examination. Such examination may include events 3592
5322	5322	subsequent to the end of the most recent fiscal year and the 3593
5323	5323	events of any prior period which relate to possible violations 3594
5324	5324	of this chapter or which affect the present financial condition 3595
5325	5325	of the provider or management company. At least once every 3 or 3596
5326	5326	5 fiscal years, as applicable, the office shall conduct an 3597
5327	5327	interview in person, telephonically, or through electronic 3598
5328	5328	communication with the current president or chair of the 3599
5329	5329	residents' council, or another design ated officer of the council 3600
5330	5330
5331	5331	HB 1429 2025
5332	5332
5333	5333
5334	5334
5335	5335	CODING: Words stricken are deletions; words underlined are additions.
5336	5336	hb1429-00
5337	5337	Page 145 of 168
5338	5338	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
5339	5339
5340	5340
5341	5341
5342	5342	if the president or chair is not available, as part of the 3601
5343	5343	examination process. The examinations must be made by a 3602
5344	5344	representative or examiner designated by the office whose 3603
5345	5345	compensation will be fixed by the office pursuant to s. 624.320. 3604
5346	5346	Routine examinations may be made by having the necessary 3605
5347	5347	documents submitted to the office ,; and, for this purpose, 3606
5348	5348	financial documents and records conforming to commonly accepted 3607
5349	5349	accounting principles and practices, as required under s. 3608
5350	5350	651.026, are deemed adequate. The final written report of each 3609
5351	5351	examination must be filed with the office and, when so filed, 3610
5352	5352	constitutes a public record. Any provider or management company 3611
5353	5353	being examined shall, upon request, give reasonable and timely 3612
5354	5354	access to all of its records. The representative or examiner 3613
5355	5355	designated by the office may at any time examine the records and 3614
5356	5356	affairs and inspect the physical property of any provider or 3615
5357	5357	management company, whether in connection with a formal 3616
5358	5358	examination or not. 3617
5359	5359	(4) The office shall notify the provider or management 3618
5360	5360	company and the executive officer of the governing body of the 3619
5361	5361	provider or management company in writing of all deficiencies in 3620
5362	5362	its compliance with the provisions of this chapter and the rules 3621
5363	5363	adopted pursuant to this chapter and shall set a reasonable 3622
5364	5364	length of time for compliance by the provider or management 3623
5365	5365	company. In addition, the office shall require corrective action 3624
5366	5366	or request a corrective action plan from the provider or 3625
5367	5367
5368	5368	HB 1429 2025
5369	5369
5370	5370
5371	5371
5372	5372	CODING: Words stricken are deletions; words underlined are additions.
5373	5373	hb1429-00
5374	5374	Page 146 of 168
5375	5375	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
5376	5376
5377	5377
5378	5378
5379	5379	management company which plan demonstrates a good faith attempt 3626
5380	5380	to remedy the deficiencies by a specified date. If the provider 3627
5381	5381	or management company fails to comply within the established 3628
5382	5382	length of time, the office may initiate action against the 3629
5383	5383	provider or management company in accordance with the provisions 3630
5384	5384	of this chapter. 3631
5385	5385	(5) A provider or management company shall respond to 3632
5386	5386	written correspondence from the office and provide data, 3633
5387	5387	financial statements, and pertinent information as requested by 3634
5388	5388	the office. The office has sta nding to petition a circuit court 3635
5389	5389	for mandatory injunctive relief to compel access to and require 3636
5390	5390	the provider or management company to produce the documents, 3637
5391	5391	data, records, and other information requested by the office. 3638
5392	5392	The office may petition the circuit court in the county in which 3639
5393	5393	the facility is situated or the Circuit Court of Leon County to 3640
5394	5394	enforce this section. 3641
5395	5395	(6) Unless a provider is impaired or subject to a 3642
5396	5396	regulatory action level event, any parent, subsidiary, or 3643
5397	5397	affiliate is not subject to ex amination by the office as part of 3644
5398	5398	a routine examination. However, If a provider, or facility, or 3645
5399	5399	management company relies on a contractual or financial 3646
5400	5400	relationship with a parent, a subsidiary, or an affiliate in 3647
5401	5401	order to meet the financial requirements of this chapter, the 3648
5402	5402	office may examine any parent, subsidiary, or affiliate that has 3649
5403	5403	a contractual or financial relationship with the provider , or 3650
5404	5404
5405	5405	HB 1429 2025
5406	5406
5407	5407
5408	5408
5409	5409	CODING: Words stricken are deletions; words underlined are additions.
5410	5410	hb1429-00
5411	5411	Page 147 of 168
5412	5412	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
5413	5413
5414	5414
5415	5415
5416	5416	facility, or management company to the extent necessary to 3651
5417	5417	ascertain the financial condition of the provider or management 3652
5418	5418	company. For any provider that has been placed into 3653
5419	5419	administrative supervision under s. 651.018, any parent, 3654
5420	5420	subsidiary, or affiliate is subject to examination by t he 3655
5421	5421	office. 3656
5422	5422	Section 73. Section 651.1065, Florida Statutes, is amended 3657
5423	5423	to read: 3658
5424	5424	651.1065 Soliciting or accepting new continuing care 3659
5425	5425	contracts by impaired or insolvent facilities or providers. — 3660
5426	5426	(1) Regardless of whether delinquency proceedings as to a 3661
5427	5427	continuing care facility have been or are to be initiated, a 3662
5428	5428	proprietor, a general partner, a member, an officer, a director, 3663
5429	5429	a trustee, or a manager, or a management company of a continuing 3664
5430	5430	care facility may not actively solicit, approve the solicitation 3665
5431	5431	or acceptance of, or accept new continuing care contracts in 3666
5432	5432	this state after the proprietor, general partner, member, 3667
5433	5433	officer, director, trustee, or manager, or a management company 3668
5434	5434	knew, or reasonably should have known, that the continuing care 3669
5435	5435	facility was impaired or insolvent except with the written 3670
5436	5436	permission of the office. If the facility has declared 3671
5437	5437	bankruptcy, the bankruptcy court or trustee appointed by the 3672
5438	5438	court has jurisdiction over suc h matters. The office must 3673
5439	5439	approve or disapprove the continued marketing of new contracts 3674
5440	5440	within 15 days after receiving a request from a provider. 3675
5441	5441
5442	5442	HB 1429 2025
5443	5443
5444	5444
5445	5445
5446	5446	CODING: Words stricken are deletions; words underlined are additions.
5447	5447	hb1429-00
5448	5448	Page 148 of 168
5449	5449	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
5450	5450
5451	5451
5452	5452
5453	5453	(2) A proprietor, a general partner, a member, an officer, 3676
5454	5454	a director, a trustee, or a manager, or a management company 3677
5455	5455	that who violates this section commits a felony of the third 3678
5456	5456	degree, punishable as provided in s. 775.082, s. 775.083, or s. 3679
5457	5457	775.084. 3680
5458	5458	Section 74. Section 651.1068, Florida Statutes, is created 3681
5459	5459	to read: 3682
5460	5460	651.1068 Officers and directors of insolvent providers or 3683
5461	5461	management companies. —Any person who was an officer or director 3684
5462	5462	of a provider or management company doing business in this state 3685
5463	5463	and who served in that capacity within the 2 -year period before 3686
5464	5464	the date the provider or management com pany became insolvent, 3687
5465	5465	for any insolvency that occurs on or after July 1, 2025, may not 3688
5466	5466	thereafter serve as an officer or director of a provider or 3689
5467	5467	management company authorized in this state or have direct or 3690
5468	5468	indirect control over the selection or appoint ment of an officer 3691
5469	5469	or director of a provider or management company through contract 3692
5470	5470	or trust or by operation of law, unless the officer or director 3693
5471	5471	demonstrates that his or her personal actions or omissions were 3694
5472	5472	not a significant contributing cause to the insolvency. 3695
5473	5473	Section 75. Subsections (2) and (3) of section 651.107, 3696
5474	5474	Florida Statutes, are amended to read: 3697
5475	5475	651.107 Duration of suspension; obligations during 3698
5476	5476	suspension period; reinstatement. — 3699
5477	5477	(2) During the period of suspension, the provider or 3700
5478	5478
5479	5479	HB 1429 2025
5480	5480
5481	5481
5482	5482
5483	5483	CODING: Words stricken are deletions; words underlined are additions.
5484	5484	hb1429-00
5485	5485	Page 149 of 168
5486	5486	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
5487	5487
5488	5488
5489	5489
5490	5490	management company shall file its annual statement and pay 3701
5491	5491	license fees and taxes as required under this chapter as if the 3702
5492	5492	certificate had continued in full force ,; but the provider shall 3703
5493	5493	issue no new contracts. 3704
5494	5494	(3) Upon expiration of the suspension period , if within 3705
5495	5495	such period the certificate of authority has not otherwise 3706
5496	5496	terminated, the provider's or management company's certificate 3707
5497	5497	of authority shall automatically be reinstated unless the office 3708
5498	5498	finds that the causes for the suspension have not been re moved 3709
5499	5499	or that the provider or management company is otherwise not in 3710
5500	5500	compliance with the requirements of this chapter. If not so 3711
5501	5501	automatically reinstated, the certificate of authority shall be 3712
5502	5502	deemed to be revoked as of the end of the suspension period or 3713
5503	5503	upon failure of the provider or management company to continue 3714
5504	5504	the certificate during the suspension period, whichever event 3715
5505	5505	first occurs. 3716
5506	5506	Section 76. Subsection (2) of section 651.108, Florida 3717
5507	5507	Statutes, is amended to read: 3718
5508	5508	651.108 Administrative fin es.— 3719
5509	5509	(2) If it is found that the provider or management company 3720
5510	5510	has knowingly and willfully violated a lawful order of the 3721
5511	5511	office or a provision of this chapter, the office may impose a 3722
5512	5512	fine of up to in an amount not to exceed $10,000 for each such 3723
5513	5513	violation. 3724
5514	5514	Section 77. Section 651.113, Florida Statutes, is created 3725
5515	5515
5516	5516	HB 1429 2025
5517	5517
5518	5518
5519	5519
5520	5520	CODING: Words stricken are deletions; words underlined are additions.
5521	5521	hb1429-00
5522	5522	Page 150 of 168
5523	5523	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
5524	5524
5525	5525
5526	5526
5527	5527	to read: 3726
5528	5528	651.113 Hazardous facility or provider standards; office's 3727
5529	5529	evaluation and enforcement authority; immediate final order. — 3728
5530	5530	(1) As used in this section, the term "negative fund 3729
5531	5531	balance" means a financial position of a provider or facility in 3730
5532	5532	which the assets of a provider or facility do not exceed its 3731
5533	5533	liabilities as required under generally accepted accounting 3732
5534	5534	principles. The Commissioner of Insurance Regulation may deem a 3733
5535	5535	provider or facility that has a negative fund balance to be 3734
5536	5536	insolvent or in imminent danger of becoming insolvent if any of 3735
5537	5537	the following hazardous financial condition standards or factors 3736
5538	5538	is applicable or present: 3737
5539	5539	(a) The provider's or facility's financial sta tements 3738
5540	5540	contain findings or conditions that the commissioner considers 3739
5541	5541	detrimental to its financial stability. 3740
5542	5542	(b) An independent auditor has identified significant 3741
5543	5543	financial risks or issued a going concern opinion. 3742
5544	5544	(c) The provider's or facility's cur rent or projected 3743
5545	5545	ratio of total assets, including required reserves, to total 3744
5546	5546	liabilities indicates financial impairment or deterioration, or 3745
5547	5547	trends suggest a potential decline in operations, working 3746
5548	5548	capital, or equity. 3747
5549	5549	(d) The provider's or facility's current or projected 3748
5550	5550	ratio of current assets to current liabilities indicates 3749
5551	5551	financial impairment or deterioration, or trends suggest a 3750
5552	5552
5553	5553	HB 1429 2025
5554	5554
5555	5555
5556	5556
5557	5557	CODING: Words stricken are deletions; words underlined are additions.
5558	5558	hb1429-00
5559	5559	Page 151 of 168
5560	5560	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
5561	5561
5562	5562
5563	5563
5564	5564	potential decline in operations, working capital, or equity. 3751
5565	5565	(e) The provider or facility is unable to carry out norm al 3752
5566	5566	daily activities and meet its obligations as they become due, 3753
5567	5567	based on its current or projected cash flow and liquidity 3754
5568	5568	position. 3755
5569	5569	(f) The provider's or facility's past -year operating 3756
5570	5570	losses or projected operating losses are significant enough to 3757
5571	5571	jeopardize daily operations or long -term viability. 3758
5572	5572	(g) The insolvency of an affiliated provider or facility 3759
5573	5573	or other affiliated person results in legal liability of the 3760
5574	5574	provider or facility for payments and expenses of such magnitude 3761
5575	5575	as to jeopardize the pro vider's or facility's ability to meet 3762
5576	5576	its obligations as they become due, without substantial 3763
5577	5577	disposition of assets outside the ordinary course of business, 3764
5578	5578	any restructuring of debt, or externally forced revisions of its 3765
5579	5579	operations. 3766
5580	5580	(h) The provider or facility has receivables that are more 3767
5581	5581	than 90 days past due. 3768
5582	5582	(i) The insolvency is not temporary and the provider or 3769
5583	5583	facility cannot demonstrate a significant reduction or 3770
5584	5584	resolution of the financial shortfall. 3771
5585	5585	(j) The provider or facility faces finan cial difficulties 3772
5586	5586	due to reporting entrance fees as deferred revenue, factoring in 3773
5587	5587	generally accepted accounting principles and the overall impact 3774
5588	5588	on net income. 3775
5589	5589
5590	5590	HB 1429 2025
5591	5591
5592	5592
5593	5593
5594	5594	CODING: Words stricken are deletions; words underlined are additions.
5595	5595	hb1429-00
5596	5596	Page 152 of 168
5597	5597	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
5598	5598
5599	5599
5600	5600
5601	5601	(k) A startup provider, a facility undergoing plant 3776
5602	5602	expansion, or an entity refinancing its debt has developed a 3777
5603	5603	financial condition that could seriously jeopardize current or 3778
5604	5604	future operation. 3779
5605	5605	(2) The provider or facility shall prepare a plan to 3780
5606	5606	address and correct any condition that has led to a 3781
5607	5607	determination of insolvency or imminent danger of insolvency by 3782
5608	5608	the Commissioner of Insurance Regulation. The plan must be 3783
5609	5609	presented to the commissioner within 30 days after the date of 3784
5610	5610	the insolvency determination. If the plan to correct the 3785
5611	5611	condition is disapproved by the commissioner, if the plan do es 3786
5612	5612	not correct the condition leading to the commissioner's 3787
5613	5613	determination of insolvency, or if the provider's or facility's 3788
5614	5614	hazardous condition is such that it cannot be significantly 3789
5615	5615	corrected or eliminated, the commissioner may proceed with 3790
5616	5616	liquidation under chapter 631. 3791
5617	5617	(3) If the office determines that the continued operations 3792
5618	5618	of a provider or facility authorized to transact business in 3793
5619	5619	this state may be hazardous to its residents or to the general 3794
5620	5620	public, the office may issue an order requiring the pr ovider or 3795
5621	5621	facility to do any of the following: 3796
5622	5622	(a) Obtain additional financing or revenues to maintain 3797
5623	5623	solvency. 3798
5624	5624	(b) Reduce expenses by specified methods or amounts. 3799
5625	5625	(c) Increase the operating reserve. 3800
5626	5626
5627	5627	HB 1429 2025
5628	5628
5629	5629
5630	5630
5631	5631	CODING: Words stricken are deletions; words underlined are additions.
5632	5632	hb1429-00
5633	5633	Page 153 of 168
5634	5634	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
5635	5635
5636	5636
5637	5637
5638	5638	(d) File reports in a form acceptable to the office 3801
5639	5639	concerning the market value of the provider's or facility's 3802
5640	5640	assets. 3803
5641	5641	(e) Limit or withdraw from certain investments or 3804
5642	5642	discontinue certain investment practices to the extent the 3805
5643	5643	office deems necessary. 3806
5644	5644	(f) Document the adequacy of income and oper ating reserves 3807
5645	5645	in relation to expenses. 3808
5646	5646	(g) File, in addition to regular annual statements, 3809
5647	5647	interim financial reports on a form prescribed by the 3810
5648	5648	commission. 3811
5649	5649	(h) Correct corporate governance practice deficiencies and 3812
5650	5650	adopt and use governance practices acceptable to the office. 3813
5651	5651	(i) Provide a business plan acceptable to the office in 3814
5652	5652	order to continue to transact business in this state. 3815
5653	5653	(j) Notwithstanding any other law limiting the frequency 3816
5654	5654	or amount of rate adjustments, adjust rates for any non -life 3817
5655	5655	insurance product written by the insurer which the office 3818
5656	5656	considers necessary to improve the financial condition of the 3819
5657	5657	insurer. 3820
5658	5658	(4) The office may, pursuant to ss. 120.569 and 120.57, in 3821
5659	5659	its discretion and without advance notice or hearing, issue an 3822
5660	5660	immediate final order to any insurer requiring the actions 3823
5661	5661	specified in subsection (3). 3824
5662	5662	(5) This section may not be interpreted to limit the 3825
5663	5663
5664	5664	HB 1429 2025
5665	5665
5666	5666
5667	5667
5668	5668	CODING: Words stricken are deletions; words underlined are additions.
5669	5669	hb1429-00
5670	5670	Page 154 of 168
5671	5671	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
5672	5672
5673	5673
5674	5674
5675	5675	powers granted to the office by any laws of this state, nor may 3826
5676	5676	it be interpreted to supersede any laws of this st ate. 3827
5677	5677	Section 78. Subsection (11) of section 651.114, Florida 3828
5678	5678	Statutes, is amended to read: 3829
5679	5679	651.114 Delinquency proceedings; remedial rights. — 3830
5680	5680	(11)(a) The rights of the office described in this section 3831
5681	5681	are subordinate to the rights of a trustee or l ender pursuant to 3832
5682	5682	the terms of a resolution, ordinance, loan agreement, indenture 3833
5683	5683	of trust, mortgage, lease, security agreement, or other 3834
5684	5684	instrument creating or securing bonds or notes issued to finance 3835
5685	5685	a facility, and the office, subject to paragraph (c), may not 3836
5686	5686	exercise its remedial rights provided under this section and ss. 3837
5687	5687	651.018, 651.106, 651.108, and 651.116 with respect to a 3838
5688	5688	facility that is subject to a lien, mortgage, lease, or other 3839
5689	5689	encumbrance or trust indenture securing bonds or notes issued i n 3840
5690	5690	connection with the financing of the facility, if the trustee or 3841
5691	5691	lender, by inclusion or by amendment to the loan documents or by 3842
5692	5692	a separate contract with the office, agrees that the rights of 3843
5693	5693	residents under a continuing care or continuing care at -home 3844
5694	5694	contract will be honored and will not be disturbed by a 3845
5695	5695	foreclosure or conveyance in lieu thereof as long as the 3846
5696	5696	resident: 3847
5697	5697	1. Is current in the payment of all monetary obligations 3848
5698	5698	required by the contract; 3849
5699	5699	2. Is in compliance and continues to comply wi th all 3850
5700	5700
5701	5701	HB 1429 2025
5702	5702
5703	5703
5704	5704
5705	5705	CODING: Words stricken are deletions; words underlined are additions.
5706	5706	hb1429-00
5707	5707	Page 155 of 168
5708	5708	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
5709	5709
5710	5710
5711	5711
5712	5712	provisions of the contract; and 3851
5713	5713	3. Has asserted no claim inconsistent with the rights of 3852
5714	5714	the trustee or lender. 3853
5715	5715	(b) This subsection does not require a trustee or lender 3854
5716	5716	to: 3855
5717	5717	1. Continue to engage in the marketing or resale of new 3856
5718	5718	continuing care or continuing care at -home contracts; 3857
5719	5719	2. Pay any rebate of entrance fees as may be required by a 3858
5720	5720	resident's continuing care or continuing care at -home contract 3859
5721	5721	as of the date of acquisition of the facility by the trustee or 3860
5722	5722	lender and until expiration of the period described in paragraph 3861
5723	5723	(d); 3862
5724	5724	3. Be responsible for any act or omission of any owner or 3863
5725	5725	operator of the facility arising before the acquisition of the 3864
5726	5726	facility by the trustee or lender; or 3865
5727	5727	4. Provide services to the residents to the extent that 3866
5728	5728	the trustee or lender would be required to advance or expend 3867
5729	5729	funds that have not been designated or set aside for such 3868
5730	5730	purposes. 3869
5731	5731	(c) If the office determines, at any time during the 3870
5732	5732	suspension of its remedial rights as provided in paragraph (a), 3871
5733	5733	that: 3872
5734	5734	1. The trustee or lender is not in compliance with 3873
5735	5735	paragraph (a); 3874
5736	5736	2. A lender or trustee has assigned or has agreed to 3875
5737	5737
5738	5738	HB 1429 2025
5739	5739
5740	5740
5741	5741
5742	5742	CODING: Words stricken are deletions; words underlined are additions.
5743	5743	hb1429-00
5744	5744	Page 156 of 168
5745	5745	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
5746	5746
5747	5747
5748	5748
5749	5749	assign all or a portion of a delinquent or defaulted loan to a 3876
5750	5750	third party without the office's written consent; 3877
5751	5751	3. The provider engaged in the misappropriation, 3878
5752	5752	conversion, or illegal commitment or withdrawal of minimum 3879
5753	5753	liquid reserve or escrowed funds required under this chapter; 3880
5754	5754	4. The provider refused to be examined by the office 3881
5755	5755	pursuant to s. 651.105(1); or 3882
5756	5756	5. The provider refused to produce any relevant accounts, 3883
5757	5757	records, and files requested as part of an examination, 3884
5758	5758	3885
5759	5759	the office shall notify the trustee or lender in writing of its 3886
5760	5760	determination, setting forth the reasons giving rise to the 3887
5761	5761	determination and specifying those remedial rights afforded to 3888
5762	5762	the office which the office shall then reinstate. 3889
5763	5763	(d) Upon acquisition of a facility by a trustee or lender 3890
5764	5764	and evidence satisfactory to the office that the requirements of 3891
5765	5765	paragraph (a) have been met, the office shall i ssue a 90-day 3892
5766	5766	temporary certificate of authority granting the trustee or 3893
5767	5767	lender the authority to engage in the business of providing 3894
5768	5768	continuing care or continuing care at -home and to issue 3895
5769	5769	continuing care or continuing care at -home contracts subject to 3896
5770	5770	the office's right to immediately suspend or revoke the 3897
5771	5771	temporary certificate of authority if the office determines that 3898
5772	5772	any of the grounds described in s. 651.106 apply to the trustee 3899
5773	5773	or lender or that the terms of the contract used as the basis 3900
5774	5774
5775	5775	HB 1429 2025
5776	5776
5777	5777
5778	5778
5779	5779	CODING: Words stricken are deletions; words underlined are additions.
5780	5780	hb1429-00
5781	5781	Page 157 of 168
5782	5782	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
5783	5783
5784	5784
5785	5785
5786	5786	for the issuance of the temporary certificate of authority by 3901
5787	5787	the office have not been or are not being met by the trustee or 3902
5788	5788	lender since the date of acquisition. 3903
5789	5789	Section 79. Section 651.1165, Florida Statutes, is created 3904
5790	5790	to read: 3905
5791	5791	651.1165 Recording of lien by the office.— 3906
5792	5792	(1) The office shall, as a condition to granting a 3907
5793	5793	provisional certificate of authority to an applicant, record 3908
5794	5794	with the county recorder of any county a notice of lien against 3909
5795	5795	the facility's properties on behalf of all residents and 3910
5796	5796	contract holders who enter into life care contracts with the 3911
5797	5797	applicant to secure performance of the provider's obligations to 3912
5798	5798	residents and contract holders pursuant to life care contracts. 3913
5799	5799	(2) From the time of the recording under subsection (1), 3914
5800	5800	there exists a lien for an amount equal to the reasonable value 3915
5801	5801	of services to be performed under a life care contract in favor 3916
5802	5802	of each resident and contract holder on the land and 3917
5803	5803	improvements of the facility's properties owned by the provider, 3918
5804	5804	not exempt from execution , which are listed in the notice of 3919
5805	5805	lien filed pursuant to subsection (3) and which are located in 3920
5806	5806	the county in which the notice of lien is recorded. 3921
5807	5807	(3) The lien shall be perfected by the office by executing 3922
5808	5808	by affidavit the notice and claim of lien, w hich must contain: 3923
5809	5809	(a) The legal description of the lands and improvements to 3924
5810	5810	be charged with a lien. 3925
5811	5811
5812	5812	HB 1429 2025
5813	5813
5814	5814
5815	5815
5816	5816	CODING: Words stricken are deletions; words underlined are additions.
5817	5817	hb1429-00
5818	5818	Page 158 of 168
5819	5819	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
5820	5820
5821	5821
5822	5822
5823	5823	(b) The name of the owner of the property affected. 3926
5824	5824	(c) A statement that the lien has been filed by the office 3927
5825	5825	pursuant to this section. 3928
5826	5826	(4) The lien may be released or partially released at the 3929
5827	5827	request of the applicant if, in the judgment of the director, 3930
5828	5828	such release or partial release inures to the benefit of the 3931
5829	5829	residents and contract holders and the performance of the 3932
5830	5830	provider's obligations to the residents and contract holders. 3933
5831	5831	(5) The lien may be foreclosed by civil action. Any number 3934
5832	5832	of persons claiming liens against the same property pursuant to 3935
5833	5833	this section may join in the same action. If separate actions 3936
5834	5834	are commenced, the court may cons olidate such actions. The court 3937
5835	5835	shall, as part of the costs, allow reasonable attorney fees for 3938
5836	5836	each claimant who is a party to the action. 3939
5837	5837	(6) In a civil action filed pursuant to this section, the 3940
5838	5838	judgment must be entered in favor of each resident and c ontract 3941
5839	5839	holder having a lien who has joined in the foreclosure action 3942
5840	5840	for the amount equal to the reasonable value of services to be 3943
5841	5841	performed under a life care contract in favor of each resident 3944
5842	5842	and contract holder. The court shall order the sheriff to se ll 3945
5843	5843	any property subject to the lien at the time judgment is given, 3946
5844	5844	in the same manner as real and personal property is sold on 3947
5845	5845	execution. The lien for the reasonable value of services to be 3948
5846	5846	performed under a life care contract must be on equal footing 3949
5847	5847	with claims of other residents and contract holders. If a sale 3950
5848	5848
5849	5849	HB 1429 2025
5850	5850
5851	5851
5852	5852
5853	5853	CODING: Words stricken are deletions; words underlined are additions.
5854	5854	hb1429-00
5855	5855	Page 159 of 168
5856	5856	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
5857	5857
5858	5858
5859	5859
5860	5860	is ordered and the property sold and the proceeds of the sale 3951
5861	5861	are not sufficient to discharge all liens of residents and 3952
5862	5862	contract holders against the property, the proceeds must be 3953
5863	5863	prorated among the respective residents and contract holders. 3954
5864	5864	(7) The lien provided for in this section is preferred to 3955
5865	5865	all liens, mortgages, or other encumbrances upon the property 3956
5866	5866	attaching subsequently to the time the lien is recorded and is 3957
5867	5867	preferred to all unrecord ed liens, mortgages, and other 3958
5868	5868	encumbrances. The amount secured by any lien having priority to 3959
5869	5869	the lien filed pursuant to this section may not be increased 3960
5870	5870	without prior approval of the office. 3961
5871	5871	(8) The office shall file a release of the lien upon proof 3962
5872	5872	of complete performance of all obligations to residents and 3963
5873	5873	contract holders pursuant to life care contracts. 3964
5874	5874	(9) The office may subordinate any lien filed pursuant to 3965
5875	5875	this section to the lien of a first mortgage or other long -term 3966
5876	5876	financing obtained by the provider, regardless of the time at 3967
5877	5877	which the subsequent lien attaches. 3968
5878	5878	Section 80. Subsection (3) of section 627.642, Florida 3969
5879	5879	Statutes, is amended to read: 3970
5880	5880	627.642 Outline of coverage. — 3971
5881	5881	(3) In addition to the outline of coverage, a policy as 3972
5882	5882	specified in s. 627.6699(3)(j) s. 627.6699(3)(k) must be 3973
5883	5883	accompanied by an identification card that contains, at a 3974
5884	5884	minimum: 3975
5885	5885
5886	5886	HB 1429 2025
5887	5887
5888	5888
5889	5889
5890	5890	CODING: Words stricken are deletions; words underlined are additions.
5891	5891	hb1429-00
5892	5892	Page 160 of 168
5893	5893	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
5894	5894
5895	5895
5896	5896
5897	5897	(a) The name of the organization issuing the policy or the 3976
5898	5898	name of the organization administering the policy, whichever 3977
5899	5899	applies. 3978
5900	5900	(b) The name of the contract holder. 3979
5901	5901	(c) The type of plan only if the plan is filed in the 3980
5902	5902	state, an indication that the plan is self -funded, or the name 3981
5903	5903	of the network. 3982
5904	5904	(d) The member identification number, contract number, and 3983
5905	5905	policy or group number, if applicable. 3984
5906	5906	(e) A contact phone number or electronic address for 3985
5907	5907	authorizations and admission certifications. 3986
5908	5908	(f) A phone number or electronic address whereby the 3987
5909	5909	covered person or hospital, physician, or other person rendering 3988
5910	5910	services covered by the policy may obtain benefits verification 3989
5911	5911	and information in order to estimate patient financial 3990
5912	5912	responsibility, in compliance with privacy rules under the 3991
5913	5913	Health Insurance Portability and Accountability Act. 3992
5914	5914	(g) The national plan identifier, in accord ance with the 3993
5915	5915	compliance date set forth by the federal Department of Health 3994
5916	5916	and Human Services. 3995
5917	5917	3996
5918	5918	The identification card must present the information in a 3997
5919	5919	readily identifiable manner or, alternatively, the information 3998
5920	5920	may be embedded on the card and availa ble through magnetic 3999
5921	5921	stripe or smart card. The information may also be provided 4000
5922	5922
5923	5923	HB 1429 2025
5924	5924
5925	5925
5926	5926
5927	5927	CODING: Words stricken are deletions; words underlined are additions.
5928	5928	hb1429-00
5929	5929	Page 161 of 168
5930	5930	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
5931	5931
5932	5932
5933	5933
5934	5934	through other electronic technology. 4001
5935	5935	Section 81. Paragraph (a) of subsection (2), paragraphs 4002
5936	5936	(a), (e), and (g) of subsection (7), and paragraph (a) of 4003
5937	5937	subsection (8) of section 627.6475, Florida Statutes, are 4004
5938	5938	amended to read: 4005
5939	5939	627.6475 Individual reinsurance pool. — 4006
5940	5940	(2) DEFINITIONS.—As used in this section: 4007
5941	5941	(a) "Board," "Carrier," and "health benefit plan" have the 4008
5942	5942	same meaning ascribed in s. 627.6699(3). 4009
5943	5943	(7) INDIVIDUAL HEALTH REINSURANCE PROGRAM. — 4010
5944	5944	(a) The individual health reinsurance program shall 4011
5945	5945	operate subject to the supervision and control of the board of 4012
5946	5946	the small employer health reinsurance program established 4013
5947	5947	pursuant to s. 627.6699(11) . The board shall es tablish a 4014
5948	5948	separate, segregated account for eligible individuals reinsured 4015
5949	5949	pursuant to this section, which account may not be commingled 4016
5950	5950	with the small employer health reinsurance account. 4017
5951	5951	(e)1. Before March 1 of each calendar year, the board 4018
5952	5952	shall determine and report to the office the program net loss in 4019
5953	5953	the individual account for the previous year, including 4020
5954	5954	administrative expenses for that year and the incurred losses 4021
5955	5955	for that year, taking into account investment income and other 4022
5956	5956	appropriate gains and losses. 4023
5957	5957	2. Any net loss in the individual account for the year 4024
5958	5958	shall be recouped by assessing the carriers as follows: 4025
5959	5959
5960	5960	HB 1429 2025
5961	5961
5962	5962
5963	5963
5964	5964	CODING: Words stricken are deletions; words underlined are additions.
5965	5965	hb1429-00
5966	5966	Page 162 of 168
5967	5967	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
5968	5968
5969	5969
5970	5970
5971	5971	a. The operating losses of the program shall be assessed 4026
5972	5972	in the following order subject to the specified limitations. The 4027
5973	5973	first tier of assessments shall be made against reinsuring 4028
5974	5974	carriers in an amount that may not exceed 5 percent of each 4029
5975	5975	reinsuring carrier's premiums for individual health insurance. 4030
5976	5976	If such assessments have been collected and additional moneys 4031
5977	5977	are needed, the board s hall make a second tier of assessments in 4032
5978	5978	an amount that may not exceed 0.5 percent of each carrier's 4033
5979	5979	health benefit plan premiums. 4034
5980	5980	b. Except as provided in paragraph (f), risk -assuming 4035
5981	5981	carriers are exempt from all assessments authorized pursuant to 4036
5982	5982	this section. The amount paid by a reinsuring carrier for the 4037
5983	5983	first tier of assessments shall be credited against any 4038
5984	5984	additional assessments made. 4039
5985	5985	c. The board shall equitably assess reinsuring carriers 4040
5986	5986	for operating losses of the individual account based on market 4041
5987	5987	share. The board shall annually assess each carrier a portion of 4042
5988	5988	the operating losses of the individual account. The first tier 4043
5989	5989	of assessments shall be determined by multiplying the operating 4044
5990	5990	losses by a fraction, the numerator of which equals the 4045
5991	5991	reinsuring carrier's earned premium pertaining to direct 4046
5992	5992	writings of individual health insurance in the state during the 4047
5993	5993	calendar year for which the assessment is levied, and the 4048
5994	5994	denominator of which equals the total of all such premiums 4049
5995	5995	earned by reinsuring carriers in the state during that calendar 4050
5996	5996
5997	5997	HB 1429 2025
5998	5998
5999	5999
6000	6000
6001	6001	CODING: Words stricken are deletions; words underlined are additions.
6002	6002	hb1429-00
6003	6003	Page 163 of 168
6004	6004	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
6005	6005
6006	6006
6007	6007
6008	6008	year. The second tier of assessments shall be based on the 4051
6009	6009	premiums that all carriers, except risk -assuming carriers, 4052
6010	6010	earned on all health benefit plans written in this state. The 4053
6011	6011	board may levy interim assessm ents against reinsuring carriers 4054
6012	6012	to ensure the financial ability of the plan to cover claims 4055
6013	6013	expenses and administrative expenses paid or estimated to be 4056
6014	6014	paid in the operation of the plan for the calendar year prior to 4057
6015	6015	the association's anticipated receipt of annual assessments for 4058
6016	6016	that calendar year. Any interim assessment is due and payable 4059
6017	6017	within 30 days after receipt by a carrier of the interim 4060
6018	6018	assessment notice. Interim assessment payments shall be credited 4061
6019	6019	against the carrier's annual assessment. Heal th benefit plan 4062
6020	6020	premiums and benefits paid by a carrier that are less than an 4063
6021	6021	amount determined by the board to justify the cost of collection 4064
6022	6022	may not be considered for purposes of determining assessments. 4065
6023	6023	d. Subject to the approval of the office, the bo ard shall 4066
6024	6024	adjust the assessment formula for reinsuring carriers that are 4067
6025	6025	approved as federally qualified health maintenance organizations 4068
6026	6026	by the Secretary of Health and Human Services pursuant to 42 4069
6027	6027	U.S.C. s. 300e(c)(2)(A) to the extent, if any, that restr ictions 4070
6028	6028	are placed on them which are not imposed on other carriers. 4071
6029	6029	3. Before March 1 of each year, the board shall determine 4072
6030	6030	and file with the office an estimate of the assessments needed 4073
6031	6031	to fund the losses incurred by the program in the individual 4074
6032	6032	account for the previous calendar year. 4075
6033	6033
6034	6034	HB 1429 2025
6035	6035
6036	6036
6037	6037
6038	6038	CODING: Words stricken are deletions; words underlined are additions.
6039	6039	hb1429-00
6040	6040	Page 164 of 168
6041	6041	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
6042	6042
6043	6043
6044	6044
6045	6045	4. If the board determines that the assessments needed to 4076
6046	6046	fund the losses incurred by the program in the individual 4077
6047	6047	account for the previous calendar year will exceed the amount 4078
6048	6048	specified in subparagraph 2., the board shall evaluate the 4079
6049	6049	operation of the program and report its findings and 4080
6050	6050	recommendations to the office in the format established in s. 4081
6051	6051	627.6699(11) for the comparable report for the small employer 4082
6052	6052	reinsurance program. 4083
6053	6053	(g) Except as otherwise provided in t his section, the 4084
6054	6054	board and the office shall have all powers, duties, and 4085
6055	6055	responsibilities with respect to carriers that issue and 4086
6056	6056	reinsure individual health insurance, as specified for the board 4087
6057	6057	and the office in s. 627.6699(11) with respect to small emplo yer 4088
6058	6058	carriers, including, but not limited to , the provisions of s. 4089
6059	6059	627.6699(11) relating to : 4090
6060	6060	1. Use of assessments that exceed the amount of actual 4091
6061	6061	losses and expenses. 4092
6062	6062	2. The annual determination of each carrier's proportion 4093
6063	6063	of the assessment. 4094
6064	6064	3. Interest for late payment of assessments. 4095
6065	6065	4. Authority for the office to approve deferment of an 4096
6066	6066	assessment against a carrier. 4097
6067	6067	5. Limited immunity from legal actions or carriers. 4098
6068	6068	6. Development of standards for compensation to be paid to 4099
6069	6069	agents. Such standards shall be limited to those specifically 4100
6070	6070
6071	6071	HB 1429 2025
6072	6072
6073	6073
6074	6074
6075	6075	CODING: Words stricken are deletions; words underlined are additions.
6076	6076	hb1429-00
6077	6077	Page 165 of 168
6078	6078	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
6079	6079
6080	6080
6081	6081
6082	6082	enumerated in s. 627.6699(11)(d) s. 627.6699(12)(d). 4101
6083	6083	7. Monitoring compliance by carriers with this section. 4102
6084	6084	(8) STANDARDS TO ASSURE FAIR MARKETING. — 4103
6085	6085	(a) Each health insurance issuer that offers individu al 4104
6086	6086	health insurance shall actively market coverage to eligible 4105
6087	6087	individuals in the state. The provisions of s. 627.6699(11) s. 4106
6088	6088	627.6699(12) that apply to small employer carriers that market 4107
6089	6089	policies to small employers shall also apply to health insurance 4108
6090	6090	issuers that offer individual health insurance with respect to 4109
6091	6091	marketing policies to individuals. 4110
6092	6092	Section 82. Subsection (2) of section 627.657, Florida 4111
6093	6093	Statutes, is amended to read: 4112
6094	6094	627.657 Provisions of group health insurance policies. — 4113
6095	6095	(2) The medical policy as specified in s. 627.6699(3)(j) 4114
6096	6096	s. 627.6699(3)(k) must be accompanied by an identification card 4115
6097	6097	that contains, at a minimum: 4116
6098	6098	(a) The name of the organization issuing the policy or 4117
6099	6099	name of the organization administering the policy, whichever 4118
6100	6100	applies. 4119
6101	6101	(b) The name of the certificateholder. 4120
6102	6102	(c) The type of plan only if the plan is filed in the 4121
6103	6103	state, an indication that the plan is self -funded, or the name 4122
6104	6104	of the network. 4123
6105	6105	(d) The member identification number, contract number, and 4124
6106	6106	policy or group number, if applicable. 4125
6107	6107
6108	6108	HB 1429 2025
6109	6109
6110	6110
6111	6111
6112	6112	CODING: Words stricken are deletions; words underlined are additions.
6113	6113	hb1429-00
6114	6114	Page 166 of 168
6115	6115	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
6116	6116
6117	6117
6118	6118
6119	6119	(e) A contact phone number or electronic address for 4126
6120	6120	authorizations and admission certifications. 4127
6121	6121	(f) A phone number or electronic address whereby the 4128
6122	6122	covered person or hospital, physician, or other person rendering 4129
6123	6123	services covered by the policy may obtain benefits verification 4130
6124	6124	and information in order to estimate patient financial 4131
6125	6125	responsibility, in compliance with privacy rules under the 4132
6126	6126	Health Insurance Portability and Accountability Act. 4133
6127	6127	(g) The national plan identif ier, in accordance with the 4134
6128	6128	compliance date set forth by the federal Department of Health 4135
6129	6129	and Human Services. 4136
6130	6130	4137
6131	6131	The identification card must present the information in a 4138
6132	6132	readily identifiable manner or, alternatively, the information 4139
6133	6133	may be embedded on the c ard and available through magnetic 4140
6134	6134	stripe or smart card. The information may also be provided 4141
6135	6135	through other electronic technology. 4142
6136	6136	Section 83. Subsection (1) of section 627.66997, Florida 4143
6137	6137	Statutes, is amended to read: 4144
6138	6138	627.66997 Stop-loss insurance.— 4145
6139	6139	(1) A self-insured health benefit plan established or 4146
6140	6140	maintained by a small employer, as defined in s. 627.6699(3)(s) 4147
6141	6141	s. 627.6699(3)(v), is exempt from s. 627.6699 and may use a 4148
6142	6142	stop-loss insurance policy issued to the employer. For purposes 4149
6143	6143	of this subsection, the term "stop -loss insurance policy" means 4150
6144	6144
6145	6145	HB 1429 2025
6146	6146
6147	6147
6148	6148
6149	6149	CODING: Words stricken are deletions; words underlined are additions.
6150	6150	hb1429-00
6151	6151	Page 167 of 168
6152	6152	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
6153	6153
6154	6154
6155	6155
6156	6156	an insurance policy issued to a small employer which covers the 4151
6157	6157	small employer's obligation for the excess cost of medical care 4152
6158	6158	on an equivalent basis per employee provided under a self -4153
6159	6159	insured health benefit plan. 4154
6160	6160	(a) A small employer stop -loss insurance policy is 4155
6161	6161	considered a health insurance policy and is subject to s. 4156
6162	6162	627.6699 if the policy has an aggregate attachment point that is 4157
6163	6163	lower than the greatest of: 4158
6164	6164	1. Two thousand dollars multiplied by t he number of 4159
6165	6165	employees; 4160
6166	6166	2. One hundred twenty percent of expected claims, as 4161
6167	6167	determined by the stop -loss insurer in accordance with actuarial 4162
6168	6168	standards of practice; or 4163
6169	6169	3. Twenty thousand dollars. 4164
6170	6170	(b) Once claims under the small employer health benefi t 4165
6171	6171	plan reach the aggregate attachment point set forth in paragraph 4166
6172	6172	(a), the stop-loss insurance policy authorized under this 4167
6173	6173	section must cover 100 percent of all claims that exceed the 4168
6174	6174	aggregate attachment point. 4169
6175	6175	Section 84. Reciprocal insurers licens ed before July 1, 4170
6176	6176	2025, have until July 1, 2026, to comply with the changes made 4171
6177	6177	to subscribers' advisory committees in s. 629.201, Florida 4172
6178	6178	Statutes. Reciprocal insurers licensed before July 1, 2025, have 4173
6179	6179	until July 1, 2027, to comply with the changes made to unearned 4174
6180	6180	premium reserve requirements imposed under s. 629.56, Florida 4175
6181	6181
6182	6182	HB 1429 2025
6183	6183
6184	6184
6185	6185
6186	6186	CODING: Words stricken are deletions; words underlined are additions.
6187	6187	hb1429-00
6188	6188	Page 168 of 168
6189	6189	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
6190	6190
6191	6191
6192	6192
6193	6193	Statutes. 4176
6194	6194	Section 85. Except as otherwise expressly provided in this 4177
6195	6195	act and except for this section, which shall take effect upon 4178
6196	6196	this act becoming a law, this act shall take e ffect July 1, 4179
6197	6197	2025. 4180