Journal of the Florida House of Representatives

Journal

of the

Florida

House of Representatives

Special Session "C"
November 1 through November 10, 1993

of the
Seventy-sixth House
since Statehood in 1845

[Including a record of transmittal of Acts subsequent to sine die adjournment]

MEMBERS OF THE HOUSE OF REPRESENTATIVES
[Democrats in Roman (71); Republicans in Italic (49)]

District
1. Parts of Escambia, Okaloosa, Santa Rosa
Bolley L. "Bo" Johnson, Milton
2. Part of Escambia
Lois Benson, Pensacola
3. Part of Escambia
Buzz Ritchie, Pensacola
4. Parts of Escambia, Okaloosa, Santa Rosa
James P. "Jim" Kerrigan, Gulf Breeze
5. Holmes, Washington and parts of Okaloosa,
Walton
Sam Mitchell, Vernon
6. Part of Bay
Scott W. Clemons, Panama City
7. Calhoun, Gulf, Jackson, Liberty and parts of
Bay, Gadsden, Leon, Walton
Robert DeWitt "Rob" Trammell, Marianna
8. Parts of Gadsden, Leon
Alfred J. "Al" Lawson, Jr., Tallahassee
9. Part of Leon
Hurley W. Rudd, Tallahassee
10. Franklin, Jefferson, Levy, Taylor, Wakulla
and parts of Alachua, Dixie, Gilchrist, Leon,
Marion
F. Allen Boyd, Jr., Monticello
11. Columbia, Hamilton, Lafayette, Madison,
Suwannee and parts of Dixie, Gilchrist
Joseph R. "Randy" Mackey, Jr., Lake City
12. Baker, Bradford, Nassau, Union and part of
Duval
George A. Crady, Yulee
13. Parts of Clay, Duval
Stephen R. Wise, Jacksonville
14. Part of Duval
Anthony C. "Tony" Hill, Sr., Jacksonville
15. Part of Duval
Willye F. Clayton Dennis, Jacksonville
16. Part of Duval
James B. "Jim" Fuller, Jacksonville
17. Part of Duval
James E. "Jim" King, Jr., Jacksonville
18. Parts of Duval, St. Johns
Joseph "Joe" Arnall, Jacksonville Beach

District
19. Parts of Clay, Duval, St. Johns
John Thrasher, Orange Park
20. Parts of Clay, Flagler, St. Johns, Volusia
Tracy W. Upchurch, St. Augustine
21. Putnam and parts of Clay, Marion
Kelley R. Smith, Palatka
22. Parts of Alachua, Marion
Robert K. "Bob" Casey, Gainesville
23. Parts of Alachua, Marion
Cynthia Moore Chestnut, Gainesville
24. Part of Marion
George Albright, Ocala
25. Parts of Lake, Marion, Seminole, Volusia
Stan Bainter, Eustis
26. Parts of Flagler, Lake, Volusia
Richard A. "Dick" McMahan, DeLand
27. Part of Volusia
Jimmy Charles, Ormond Beach
28. Part of Volusia
Jack Ascherl, New Smyrna Beach
29. Part of Brevard
Charlie Roberts, Titusville
30. Part of Brevard
Howard E. Futch, Melbourne Beach
31. Part of Brevard
Harry C. Goode, Jr., Melbourne
32. Parts of Brevard, Indian River, Orange
Bill Posey, Rockledge
33. Parts of Orange, Seminole, Volusia
Marvin Couch, Oviedo
34. Parts of Orange, Seminole
Robert J. "Bob" Starks, Winter Park
35. Parts of Orange, Seminole
Tom Feeney, Orlando
36. Part of Orange
Kimberly M. "Kim" Shepard, Orlando
37. Parts of Orange, Seminole
D. Lee Constantine, Altamonte Springs

District
38. Parts of Lake, Orange
Robert B. "Bob" Sindler, Apopka
39. Part of Orange
Alzo J. Reddick, Orlando
40. Part of Orange
William E. "Bill" Sublette, Orlando
41. Parts of Lake, Orange, Osceola
Daniel Webster, Orlando
42. Parts of Lake, Marion, Sumter
Everett A. Kelly, Tavares
43. Citrus and parts of Hernando, Marion
Paul M. Hawkes, Crystal River
44. Parts of Hernando, Lake, Pasco, Polk, Sumter
Jeff "Stabe" Stabins, Spring Hill
45. Parts of Hernando, Pasco
John Long, Land O'Lakes
46. Part of Pasco
Philip Mishkin, Port Richey
47. Parts of Hillsborough, Pinellas
Brian P. Rush, Tampa
48. Parts of Hillsborough, Pinellas
R. Z. Safley, Clearwater
49. Part of Pinellas
Sandra Barringer Mortham, Largo
50. Part of Pinellas
John Morroni, Clearwater
51. Part of Pinellas
Mary Brennan, Pinellas Park
52. Part of Pinellas
Peter Rudy Wallace, St. Petersburg
53. Part of Pinellas
Lars A. Hafner, St. Petersburg
54. Part of Pinellas
Dennis L. Jones, Treasure Island
55. Parts of Manatee, Pinellas
Douglas L. "Tim" Jamerson, St. Petersburg
(Resigned December 31, 1993)
Rudolph "Rudy" Bradley, St. Petersburg
(Elected March 1, 1994)
56. Part of Hillsborough
Jim Davis, Tampa
57. Part of Hillsborough
Ronald C. "Ron" Glickman, Tampa
58. Part of Hillsborough
Elvin L. Martinez, Tampa

59. Part of Hillsborough
Lesley "Les" Miller, Jr., Tampa

District
60. Part of Hillsborough
Victor D. Crist, Temple Terrace
61. Parts of Hillsborough, Pasco
Carl D. Littlefield, Dade City
62. Part of Hillsborough
Buddy Johnson, Plant City
63. Part of Polk
Dean P. Saunders, Lakeland
64. Part of Polk
Joseph G. "Joe" Tedder, Lakeland
65. Part of Polk
Lori Edwards, Auburndale
66. Parts of Hillsborough, Polk
John Laurent, Bartow
67. Parts of Hillsborough, Manatee, Sarasota
Mark R. Ogles, Bradenton
68. Part of Manatee
Julie McClure, Bradenton
69. Part of Sarasota
Shirley Brown, Sarasota
70. Part of Sarasota
David L. "Dave" Thomas, Sarasota
71. Parts of Charlotte, Sarasota
David I "Dave" Bitner, Port Charlotte
72. DeSoto, Hardee and parts of Charlotte, Lee
Vernon Peeples, Punta Gorda
73. Part of Lee
J. Keith Arnold, Fort Myers
74. Parts of Charlotte, Lee, Sarasota
Greg Gay, Cape Coral
75. Parts of Collier, Lee
Timothy F. "Tim" Ireland, Cape Coral/
Fort Myers
76. Part of Collier
Mary Ellen Hawkins, Naples
77. Glades, Hendry and parts of Collier,
Highlands
Bert J. Harris, Jr., Lake Placid
78. Parts of Highlands, Martin, Okeechobee, Palm
Beach, St. Lucie
O. R. "Rick" Minton, Jr., Fort Pierce
79. Parts of Okeechobee, Osceola
Irlo "Bud" Bronson, Kissimmee

80. Parts of Indian River, St. Lucie
Charles W. "Charlie" Sembler II, Sebastian

District
81. Parts of Martin, St. Lucie
Kenneth P. "Ken" Pruitt, Port St. Lucie
82. Parts of Martin, Palm Beach
Tom Warner, Stuart
83. Part of Palm Beach
Sharon J. Merchant, Palm Beach Gardens
84. Part of Palm Beach
Addie L. Greene, Mangonia Park
85. Part of Palm Beach
Mimi K. McAndrews, Royal Palm Beach
86. Part of Palm Beach
Edward J. "Ed" Healey, West Palm Beach
87. Part of Palm Beach
Carol G. Hanson, Boca Raton
88. Part of Palm Beach
Suzanne Jacobs, Delray Beach
89. Part of Palm Beach
Ron Klein, Boca Raton
90. Part of Broward
John C. Rayson, Pompano Beach
91. Parts of Broward, Palm Beach
Debby P. Sanderson, Fort Lauderdale
92. Part of Broward
Tracy Stafford, Wilton Manors
93. Part of Broward
Muriel "Mandy" Dawson, Fort Lauderdale
94. Part of Broward
Josephus Eggelletion, Jr., Lauderdale Lakes
95. Part of Broward
Jack N. Tobin, Margate
96. Part of Broward
Ben Graber, Coral Springs
97. Part of Broward
Debbie Wasserman Schultz, Davie
98. Part of Broward
Steven B. "Steve" Feren, Sunrise
99. Part of Broward
Anne Mackenzie, Fort Lauderdale
100. Part of Broward
Frederick "Fred" Lippman, Hollywood
101. Parts of Broward, Dade
Steven A. Geller, Hallandale

District
102. Parts of Collier, Dade
Luis E. Rojas, Hialeah
103. Part of Dade
Willie Logan, Jr., Opa-locka
104. Part of Dade
Elaine Gordon, North Miami
105. Part of Dade
Michael I. "Mike" Abrams, North Miami Beach
106. Part of Dade
Elaine Bloom, Miami Beach
107. Part of Dade
Bruno A. Barreiro, Jr., Miami
108. Part of Dade
Beryl D. Burke, Miami
109. Part of Dade
James Bush III, Miami
110. Part of Dade
Rodolfo "Rudy" Garcia, Jr., Hialeah
111. Part of Dade
Carlos L. Valdes, Miami Springs
112. Part of Dade
J. Alex Villalobos, Miami
113. Part of Dade
Luis C. Morse, Miami
114. Part of Dade
Miguel A. De Grandy, Miami
(Resigned June 12, 1994)
115. Part of Dade
Carlos A. Manrique, Westchester
116. Part of Dade
Art Simon, Miami
117. Part of Dade
Eladio Armesto-Garcia, Miami
118. Part of Dade
Larcenia J. Bullard, Miami
119. Part of Dade
John F. Cosgrove, Miami
120. Monroe and part of Dade
Ron Saunders, Key West

OFFICERS OF THE HOUSE OF REPRESENTATIVES

Speaker-Bolley L. "Bo" Johnson
Speaker pro tempore-Elaine Bloom

Clerk-John B. Phelps
Sergeant at Arms-Wayne Westmark

MEMBERS OF THE HOUSE OF REPRESENTATIVES

Michael I. Abrams (D)
North Miami Beach
District 105

George Albright (R)
Ocala
District 24

Eladio Armesto-Garcia (R)
Miami
District 117

Joseph Amall (R)
Jacksonville Beach
District 18

J. Keith Arnold (D)
Fort Myers
District 73

Jack Ascherl (D)
New Smyrna Beach
District 28

Stan Bainter (R)
Eustis
District 25

Bruno A. Barreiro, Jr. (R)
Miami
District 107

Lois Benson (R)
Pensacola
District 2

David I. Bitner (R)
Port Charlotte
District 71

Elaine Bloom (D)
Miami Beach
District 106

Shirley Brown (D)
Sarasota
District 69

Jimmy Charles (D)
Ormond Beach
District 27

F. Allen Boyd, Jr. (D)
Monticello
District 10

Larcenia J. Bullard (D)
Miami
District 118

Cynthia Moore Chestnut (D)
Gainesville
District 23

Rudolph Bradley (D)
St. Petersburg
District 55

Beryl D. Burke (D)
Miami
District 108

Scott W. Clemons (D)
Panama City
District 6

Mary Brennan (D)
Pinellas Park
District 51

James Bush III (D)
Miami
District 109

D. Lee Constantine (R)
Altamonte Springs
District 37

Irlo "Bud" Bronson (D)
Kissimmee
District 79

Robert K. Casey, M.D. (R)
Gainesville
District 22

: -- ---- ...

John F. Cosgrove (D)
Miami
District 119

9

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ih:-:
"'

Marvin Couch (R)
Oviedo
District 33

George A. Crady (D)
Yulee
District 12

Victor D. Crist (R) Jim Davis (D)
Temple Terrace Tampa
District 60 District 56

Muriel Dawson (D)
Fort Lauderdale
District 93

Miguel A. De Grandy (R)
Miami
District 114

Steven B. Feren (D)
Sunrise
District 98

Willye F. Clayton Dennis (D)
Jacksonville
District 15

James B. Fuller (R)
Jacksonville
District 16

Lori Edwards (D)
Auburdale
District 65

Howard E. Futch (R)
Melbourne Beach
District 30

Josephus Eggelletion, Jr. (D)
Lauderdale Lakes
District 94

Rodolfo Garcia, Jr. (R)
Hialeah
District 110

Steven A. Geller (D)
Hallandale
District 101

Ronald C. Glickman (D)
Tampa
District 57

Harry C. Goode, Jr. (D)
Melbourne
District 31

Elaine Gordon (D)
North Miami
District 104

Ben Graber, M.D. (D)
Coral Springs
District 96

[7T]

Addie L. Greene (D)
Mangonia Park
District 84

Lars A. Hafner (D)
St. Petersburg
District 53

Carol G. Hanson (R)
Boca Raton
District 87

Bert J. Harris, Jr. (D)
Lake Placid
District 77

Paul M. Hawkes (R)
Crystal River
District 43

Tom Feeney (R)
Orlando
District 35

Greg Gay (R)
Cape Coral
District 74

. ...

Mary Ellen Hawkins (R)
Naples
District 76

Bolley L. Johnson (D)
Milton
District 1

Edward J. Healey (D)
West Palm Beach
District 86

Buddy Johnson (R)
Plant City
District 62

Anthony C. Hill, Sr. (D)
Jacksonville
District 14

Dennis L. Jones, D.C. (R)
Treasure Island
District 54

Timothy F. Ireland (R)
Cape Coral/Fort Myers
District 75

Everett A. Kelly (D)
Tavares
District 42

Suzanne Jacobs (D)
Delray Beach
District 88

James P. Kerrigan (R)
Gulf Breeze
District 4

James E. King, Jr. (R)
Jacksonville
District 17

Carl D. Littlefield (R)
Dade City
District 61

Ron Klein (D) John Laurent (R)
Boca Raton Bartow
District 89 District 66

Willie Logan, Jr. (D)
Opa-locka
District 103

John Long (D)
Land O'Lakes
District 45

Alfred J. Lawson, Jr. (D)
Tallahassee
District 8

Anne Mackenzie (D)
Fort Lauderdale
District 99

Frederick Lippman (D)
Hollywood
District 100

Joseph R. Mackey, Jr. (D)
Lake City
District 11

Carlos A. Manrique (R)
Westchester
District 115

Elvin L. Martinez (D)
Tampa
District 58

Mimi K. McAndrews (D)
Royal Palm Beach
District 85

Julie McClure (D)
Bradenton
District 68

Richard A. McMahan (D)
DeLand
District 26

Sharon J. Merchant (R)
Palm Beach Gardens
District 83

John Morroni (R)
Clearwater
District 50

Bill Posey (R)
Rockledge
District 32

Lesley Miller, Jr. (D)
Tampa
District 59

Luis C. Morse (R)
Miami
District 113

Kenneth P. Pruitt (R)
Port St. Lucie
District 81

O. R. Minton, Jr. (D)
Fort Pierce
District 78

Sandra Barringer Mortham (R)
Largo
District 49

John C. Rayson (D)
Pompano Beach
District 90

Philip Mishkin (D)
Port Richey
District 46

Mark R. Ogles (R)
Bradenton
District 67

Alzo J. Reddick (D)
Orlando
District 39

Sam Mitchell (D)
Vernon
District 5

Vernon Peeples (D)
Punta Gorda
District 72

Buzz Ritchie (D)
Pensacola
District 3

Charlie Roberts (D)
Titusville
District 29

Luis E. Rojas (R)
Hialeah
District 102

Hurley W. Rudd (D)
Tallahassee
District 9

Brian P. Rush (D)
Tampa
District 47

Debby P. Sanderson (R) Dean P. Saunders (D)
Fort Lauderdale Lakeland
District 91 District 63

Ron Saunders (D)
Key West
District 120

Debbie Wasserman Schultz (D) Charles W. Sembler II (R)
Davie Sebastian
District 97 District 80

R. Z. Safley (R)
Clearwater
District 48

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Kimberly M. Shepard (D)
Orlando
District 36

Art Simon (D)
Miami
District 116

Robert B. Sindler, D.V.M. (D)
Apopka
District 38

Kelley R. Smith (D)
Palatka
District 21

Tracy Stafford (D)
Wilton Manors
District 92

John Thrasher (R)
Orange Park
District 19

Robert J. Starks (R)
Winter Park
District 34

Jack N. Tobin (D)
Margate
District 95

William E. Sublette (R)
Orlando
District 40

Robert DeWitt Trammell (D)
Marianna
District 7

Joseph G. Tedder (D)
Lakeland
District 64

Tracy W. Upchurch (D)
St. Augustine
District 20

David L. Thomas, M.D. (R)
Sarasota
District 70

------ -

Carlos L. Valdes (R)
Miami Springs
District 111

J. Alex Villalobos (R)
Miami
District 112

Peter Rudy Wallace (D)
St. Petersburg
District 52

Tom Warner (R)
Stuart
District 82

Daniel Webster (R)
Orlando
District 41

Stephen R. Wise (R)
Jacksonville
District 13

Jeff Stabins (R)
Spring Hill
District 44

The Journal OFTHE

House of Representatives

THIRD SPECIAL SESSION-"C" of 1992-1994

Number 1

Monday, November 1, 1993

Journal of the House of Representatives for a Special Session of the Seventy-sixth House since Statehood in 1845,
convened by Proclamation of the Governor and held at the Capitol in the City of Tallahassee in the State of Florida, on
Monday, November 1, 1993.

Pursuant to the following proclamation, the House was called to order
by the Honorable Bolley L. Johnson, Speaker, at 2:00 p.m.
The following proclamations were read:

PROCLAMATION

State of Florida
Executive Department
Tallahassee
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE AND
THE FLORIDA HOUSE OF REPRESENTATIVES:
WHEREAS, the Thirteenth Legislature of the State of Florida, under
the Florida Constitution, 1968 Revision, convened in regular session on
Tuesday, February 2, 1993, and adjourned sine die on Sunday, April 4,
1993, and
WHEREAS, it is appropriate to consider the issues of workers'
compensation, juvenile crime, property insurance and reinsurance, and tax
credits for defense industries converting their defense production into
civilian applications, before the Florida Legislature convenes in its next
regular session in 1994, and
WHEREAS, the exorbitant workers' compensation rates paid by Florida
businesses severely hinder the State's ability to encourage new and
expanded business development and job creation, and
WHEREAS, Florida's current Workers' Compensation rates are among
the highest in the nation, and
WHEREAS, it has been estimated that for every 1 % increase in workers'
compensation premium rates, 50,000 Florida jobs are lost, and
WHEREAS, workers' compensation issues should be considered by a
special session of the Florida Legislature because insurance companies
underwriting workers' compensation insurance in Florida are seeking a
13.8% rate increase, and
WHEREAS, during a series of public hearings recently held around the
State, small and large businesses, private employees, health care providers,
and insurers have called for workers' compensation reform, and
WHEREAS, in spite of significant new programs and resources
appropriated in the 1993 regular legislative session and the subsequent
special legislative session on crime, juvenile crime continues to be a tragic
undercurrent in our society and warrants more attention, and
WHEREAS, numerous new juvenile programs and resources are being
implemented as a result of recent authorization and the state will benefit
from these efforts, although much remains to be done, and

WHEREAS, various reform proposals have surfaced that warrant
careful consideration in the 1994 regular session, but selected items can
and should be decided before the regular session convenes February 8,
1994, and
WHEREAS, the problem of juvenile crime and delinquency should be
considered in a special session of the Florida Legislature because it is
widely recognized that juvenile crime has become the greatest single crime
problem in America today, and
WHEREAS, the issue of defense reinvestment should be considered by
the Legislature in special session because the reduction of the military
threat due to the end of the cold war and the break up of the Soviet Union
has resulted in a diversion of federal monies away from the defense
industry, and
WHEREAS, fifty percent of the high technology jobs in Florida have
been created as a direct result of defense supply contracts, and
WHEREAS, it is incumbent upon the Florida Legislature to restructure
the business opportunities within this state to continue to attract high
quality jobs and industry for Florida workers, and
WHEREAS, insurance issues should be considered by the Florida
Legislature in special session because, in the aftermath of Hurricane
Andrew the insurance industry has taken steps to non-renew or cancel as
many as 844,000 homeowner insurance policies in the state, and
WHEREAS, the Legislature imposed a moratorium on such
cancellations and non-renewals until November 14, 1993, and
WHEREAS, the Legislature established a Study Commission on
Propery Insurance and Reinsurance to examine this potential crisis and to
recommend solutions to guide the Legislature in considering issues related
to the property insurance and reinsurance industry, and
WHEREAS, the Study Commission has finished its work and issued its
report.
NOW, THEREFORE, I, LAWTON CHILES, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article III,
Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:
Section 1.
The Legislature of the State of Florida is convened in Special Session
commencing on Monday, November 1, 1993, at 2:00 p.m. and ending, at
11:59 p.m. Friday, November 5, 1993.
Section 2.
The Legislature of Florida is convened for the sole and exclusive
purpose of considering the following:
1

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(a) Legislation to amend Florida statutes regarding Workers'
Compensation.
(b) Legislation responding to the recommendations of the Study
Commission on Property Insurance and Reinsurance.
(c) Legislation amending Sections 790.17, 790.23 and 790.25,
Florida Statutes, regarding possession of a firearm by a juvenile
or delivery of a firearm to a juvenile under certain conditions.
(d) Legislation to encourage the development of industrial
employment opportunities in Florida to help alleviate the
potential hardship associated with the reduction of defense
related contracting.

B IN TESTIMONY WHEREOF, I have hereunto
set my hand and have caused the Great Seal of
the State of Florida to be affixed at Tallahassee,
the Capitol, this 11th day of October, 1993.
LAWTON CHILES
Governor

ATTEST:
JIM SMITH
Secretary of State

PROCLAMATION

State of Florida
Executive Department
Tallahassee
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE AND
THE FLORIDA HOUSE OF REPRESENTATIVES:
WHEREAS, the Thirteenth Legislature of the State of Florida, under
the Florida Constitution, 1968 Revision, convened in regular session on
Tuesday, February 2, 1993, and adjourned sine die on Sunday, April 4,
1993, and
WHEREAS, by proclamation dated October 11, 1993, the Governor
called the Florida Legislature into special session to convene on November
1, 1993, to consider the issues of workers' compensation, juvenile crime,
property insurance and reinsurance, and tax credits for defense industries
converting their defense production into civilian applications, and
WHEREAS, it is appropriate to amend that proclamation to include
additional sections of Chapter 790, Florida Statutes, to be amended during
the special session.
NOW, THEREFORE, I, LAWTON CHILES, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article III,
Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:
Section 2(c) of the Proclamation of the Governor dated October 11, 1993,
is hereby amended to read:
(c) Legislation amending Sections 790.17, 790.174, 790.175, 790.18,
790.22, 790.23, 790.25, Florida Statutes, regarding possession of a firearm
by a juvenile or delivery of a firearm to a juvenile under certain conditions.

IN TESTIMONY WHEREOF, I have hereunto set
my hand and have caused the Great Seal of the
State of Florida to be affixed at Tallahassee, the
Capitol, this 1st day of November, 1993.
LAWTON CHILES
Governor

ATTEST:
JIM SMITH
Secretary of State

Prayer
The following prayer was offered by the Honorable George A. Crady of
Yulee:
Our Father, who art in heaven, we recognize that every session causes
many prayers to be sent Your way. Workers' compensation, insurance,
juvenile justice issues will cause prayers that reflect many concerns and
represent different entities. Our prayer today asks simply that, as You sift
through these prayers, You select those that reflect the best destiny for the
citizens of the state of Florida. Honor those and kindly return the rest. We
ask these things in Thy name. Amen.
The following Members were recorded present:

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Crady
Crist
De Grandy
Dennis

Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Goode
Gordon
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent

Lawson
Lippman
Littlefield
Logan
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Wise

Excused: Reps. Barreiro, Bush, Couch, Davis, Dawson, Garcia,
Glickman, Graber, Hill, Long, Rush, Simon, Starks, Sublette and Webster.
A quorum was present.

Pledge
The Members, led by the Honorable James P. Kerrigan of Gulf Breeze,
pledged allegiance to the Flag.

The Journal
The Journal of May 27, Special Session "B," was corrected and approved
as corrected.

Select Committee Appointment
The Speaker advised that he had created, under Rule 6.3, the House
Working Group on Right-to-Know which is charged with developing
recommendations to protect Florida's farmworkers through providing the
information they need to safeguard their health. The following Members
were appointed by the Speaker to serve on the committee: Rep. Harris,
Chair; Rep. Greene, Vice Chair; Reps. Boyd, Bush, Edwards, Fuller,
Graber, Hill, and Rojas.

Changes in Committee Assignments
The Speaker advised that he had made the following changes in
committee assignments:
Rep. Posey was added to the Select Committee on Agency Rules.
Rep. McAndrews was added to the Committee on Judiciary and the
Subcommittee on Claims.
Rep. Harris was added to the Subcommittee on Real Property and
Family Law of the Committee on Judiciary.

November 1, 1993

2

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Rep. Harris was removed from the Subcommittee on Claims of the
Committee on Judiciary.

Introduction and Reference

By Representative Hawkes-
HB 13-C-A bill to be entitled An act relating to workers'
compensation; amending s. 440.01, F.S.; providing a short title; amending
s. 440.02, F.S.; revising certain definitions; deleting certain definitions;
creating s. 440.025, F.S.; providing purposes; amending s. 440.05, F.S.,
relating to notice and waiver of exemption or acceptance; deleting certain
provisions relating to the construction industry; eliminating a fee;
amending s. 440.077, F.S.; specifying procedures in certain actions to
recover damages; amending s. 440.09, F.S.; revising provisions relating to
coverage; amending s. 440.091, F.S.; providing for coverage of law
enforcement officers under certain circumstances; creating s. 440.095, F.S.;
providing required injury protection benefits; creating s. 440.096, F.S.;
specifying additional liability insurance coverage for employers; amending
s. 440.10, F.S.; specifying liability for compensation; creating s. 440.105,
F.S.; providing exemptions from tort liability under certain circumstances;
providing limitations on rights to damages; amending s. 440.13, F.S.;
substantially revising provisions relating to providing medical services and
supplies; providing penalties; providing limitations; creating s. 440.135,
F.S.; providing for collateral sources of indemnity; providing a definition;
providing an exclusion; amending s. 440.14, F.S.; deleting certain
provisions relating to determination of pay; amending s. 440.151, F.S.;
deleting a provision prohibiting payment of compensation for death from
an occupational disease under certain circumstances; amending s. 440.185,
F.S.; substantially revising provisions relating to notice of injury or death;
requiring reports; amending s. 440.20, F.S.; substantially revising
provisions relating to payment of compensation; amending s. 440.205, F.S.,
to conform; amending s. 440.23, F.S.; providing a limitation upon certain
compensation as a lien against assets; creating s. 440.235, F.S.; establishing
certain presumptions with respect to proceedings for enforcement of claims
for compensation; amending s. 440.32, F.S.; deleting authority of judges of
compensation claims to assess certain costs in certain proceedings;
amending s. 440.37, F.S.; deleting a required notice provision from claims
forms; deleting a penalty for making certain false or misleading statements
or representations; providing penalties; amending s. 440.385, F.S.; deleting
certain provisions relating to withdrawing members of the Florida Self-
Insurers Guaranty Association; providing for obligation of the association
under certain circumstances; authorizing the association to develop
guidelines to determine member insolvency; providing a credit against
corporate income tax for members; amending s. 440.39, F.S.; deleting a
provision related to liability of compensation for certain injuries to migrant
workers under specified circumstances; deleting a provision making certain
nonprivileged documents confidential and exempt from public records
inspection requirements; amending s. 440.40, F.S.; revising provisions
relating to notice of compensation; creating s. 440.405, F.S.; providing for
proceedings against the state; amending s. 440.43, F.S.; specifying a time
period for securing certain compensation; deleting a requirement that
evidence of compensation be shown by a time certain; deleting provisions
imposing fines for failing to provide such evidence; repealing ss. 440.015,
440.021,440.055,440.075, 440.092, 440.101, 440.102, 440.11, 440.12, 440.15,
440.152, 440.16, 440.17, 440.19, 440.207, 440.21, 440.24, 440.25, 440.271,
440.28, 440.29, 440.30, 440.31, 440.33, 440.34, 440.35, 440.38, 440.381,
440.386, 440.41, 440.42, 440.44, 440.442, 440.45, 440.46, 440.47, 440.48,
440.49, 440.50, 440.51, 440.515, 440.52, 440.53, 440.54, 440.55, 440.56,
440.57, 440.5705, 440.571,440.572, 440.575, 440.58, 440.585, 440.59, 440.60,
F.S., relating to workers' compensation; providing an effective date.
-was read the first time by title and referred to the Committees on
Commerce, Finance & Taxation and Appropriations.

By Representatives Warner and Benson--
HB 15-C-A bill to be entitled An act relating to workers'
compensation; creating the "Florida No-fault Workers' Compensation and
Employer Liability Act"; providing a short title; providing legislative
intent; authorizing election of provisions of the act in lieu of application

of chapter 440, F.S.; providing for notice of election; providing for
revocation of election; providing for notice to employees; providing
definitions; specifying benefits payable to employees; providing criteria;

providing for certain periodic medical evaluations; specifying accidental
death and dismemberment insurance coverage; requiring continuation of
coverage for employees under certain circumstances; specifying employer
duties to employees; providing for employer's defenses; providing for
coworker immunity; providing for notice of claims; limiting certain
defenses by employers under certain circumstances; specifying procedures
for filing and responding to claims; limiting expert witness testimony under
certain circumstances; providing for determination of comparative
negligence under certain circumstances; authorizing the Department of
Insurance to adopt rules requiring proof of insurance or financial
responsibility; providing for implementation and administration with
reference to certain provisions of the Workers' Compensation Law relating
to waiver of exemption, notice of exemption or acceptance, and waiver of
exemption or acceptance, coverage, specified activities within the course
of employment, legislative intent regarding drug-free workplaces, criteria
for a drug-free workplace program, determination of pay, coercion of
employees, benefits as lien against assets, misrepresentation, fraudulent
activities, security for benefits, compensation for injuries when third
parties are liable, benefits notice, effect of unconstitutionality, proceedings
against the state, pooling liabilities, self-insured public utilities, local
government pools, administrative procedures, rulemaking, and coverage;
providing application to the Department of Insurance; authorizing the
department to adopt rules; providing penalties; providing an effective date.
-was read the first time by title and referred to the Committees on
Commerce, Finance & Taxation and Appropriations.

By Representative Miller-
HB 23-C-A bill to be entitled An act relating to workers'
compensation; amending s. 440.02, F.S.; excluding from the definition of
"accident" diseases with certain prejudicial manifestations; providing an
effective date.
-was read the first time by title and referred to the Committees on
Commerce and Appropriations.

By Representative Cosgrove-
HB 31-C-A bill to be entitled An act relating to the Florida Hurricane
Catastrophe Fund; creating s. 215.555, F.S.; providing findings and
purpose; providing definitions; creating the Florida Hurricane Catastrophe
Fund as a trust fund under the State Board of Administration; specifying
uses of moneys in the fund; specifying applicability of other laws; requiring
the fund and specified insurers to enter into reimbursement contracts;
specifying obligations of the fund under reimbursement contracts;
requiring reports; providing for loans; requiring payment of
reimbursement premium; providing for calculation of reimbursement
premium; specifying accounting and regulatory treatment of
reimbursement premium; requiring advance payment; providing
circumstances for issuance of revenue bonds on behalf of the fund;
specifying pledged revenues; authorizing units of local government to issue
such bonds; requiring validation; authorizing emergency assessments;
authorizing the fund to procure reinsurance; authorizing borrowing by the
fund; authorizing the fund to expend certain moneys to support programs
to mitigate hurricane losses; providing for appointment of an advisory
council; providing for per diem and travel expenses; specifying
applicability of s. 19, Art. III, State Constitution, to the fund; providing
that violations constitute violations of the Insurance Code; providing for
recommendations with respect to federal or multistate catastrophic funds;
providing an exemption from the deduction required by s. 215.20(1), F.S.;
providing an effective date.
-was read the first time by title and referred to the Committees on
Insurance, Finance & Taxation and Appropriations.

By Representative Cosgrove-
HB 33-C-A bill to be entitled An act relating to insurance; amending
s. 624.307, F.S.; requiring the Department of Insurance to implement a
program to encourage the entry of additional insurers into the Florida
market; creating s. 624.3101, F.S.; prohibiting false or misleading financial
statements; providing penalties; creating s. 624.3102, F.S.; providing

immunity from civil liability for persons who provide the department with
certain information about insurers; amending s. 624.316, F.S.; specifying
frequency of examinations of insurers; providing for adoption of rules;

November 1, 1993

3

4 JOURNAL OF THE HOUSE

amending s. 624.407, F.S.; increasing the minimum surplus as to
policyholders required for issuance of a certificate of authority as a
property and casualty insurer; amending s. 624.408, F.S.; increasing the
minimum surplus as to policyholders required for maintenance of a
certificate of authority as a property and casualty insurer; amending s.
624.424, F.S.; requiring an insurer's annual statement to include a
statement of opinion on reserves; limiting waivers of accounting
requirements; creating s. 624.4243, F.S.; providing for computation and
reporting of premium growth; specifying powers of the department;
amending s. 624.610, F.S.; providing criteria for classification as an
approved reinsurer; requiring a ceding insurer to conduct a due diligence
inquiry with respect to an assuming reinsurer; amending s. 625.305, F.S.;
removing authority of the department to waive certain investment
restrictions; amending s. 626.7491, F.S.; specifying when an insurer is
presumed to be producer-controlled; amending s. 626.918, F.S.; increasing
minimum surplus requirements for surplus lines insurers; creating s.
627.0629, F.S.; requiring residential property insurance rate filings to
include rate differentials for properties on which certain fixtures have been
installed; authorizing such rate filings to include factors reflecting the
quality of particular building codes and enforcement thereof; providing for
adoption and use of a standard hurricane loss exposure model; amending
s. 627.351, F.S.; revising provisions with respect to deficit assessments in
the windstorm insurance risk apportionment plan; authorizing issuance of
bonds on behalf of the plan; providing circumstances under which a
classification is immediately eligible for coverage in the Florida Property
and Casualty Joint Underwriting Association; providing criteria for rates;
activating coverage with respect to commercial coverages of residences;
providing for legislative review; providing for termination; revising
provisions with respect to deficit assessments; authorizing issuance of
bonds on behalf of the association; providing legislative intent with respect
to the Residential Property and Casualty Joint Underwriting Association;
providing criteria for rates; requiring rate filings; revising provisions
relating to deficit assessments; authorizing issuance of bonds on behalf of
the association; providing for dissolution of the association; amending s.
627.4133, F.S.; specifying period for notice of nonrenewal, renewal
premium, and cancellation; amending s. 627.701, F.S.; specifying powers of
the department with respect to deductible provisions in certain policies;
creating s. 627.7011, F.S.; requiring certain provisions to be offered with
respect to homeowner's policies; providing for rejection or selection of
alternative coverages; requiring notice; creating s. 627.7012, F.S.;
authorizing the department to establish pools of qualified adjusters for use
in emergencies; creating s. 627.7013, F.S.; providing findings and purpose;
limiting cancellation or nonrenewal of policies that were subject to the
moratorium contained in ch. 93-401, Laws of Florida; providing for future
repeal; requiring insurers to submit exposure reduction plans to the
department for approval; creating s. 627.7014, F.S.; requiring insurers to
implement plans for the avoidance of certain concentrations of property
insurance exposures; providing for reports; providing circumstances for
submission of plans to the department; amending s. 628.801, F.S.;
specifying content and applicability of rules relating to insurance holding
companies; amending s. 631.52, F.S.; specifying applicability of the Florida
Insurance Guaranty Association Act; amending s. 631.54, F.S.; including
certain surplus lines insurers as member insurers; amending s. 631.55, F.S.;
requiring a separate account for surplus lines insurers; requiring the
Department of Insurance to conduct a study of the classification of
condominium association coverage; requiring reports; amending ss. 625.330
and 631.011, F.S.; correcting cross references; providing effective dates.
-was read the first time by title and referred to the Committees on
Insurance, Finance & Taxation and Appropriations.

By Representative Geller--
HB 43-C-A bill to be entitled An act relating to insurance; amending
s. 627.351, F.S.; providing circumstances under which a classification is
immediately eligible for coverage in the Florida Property and Casualty
Joint Underwriting Association; providing criteria for rates; activating
coverage with respect to commercial coverages of residences; providing for

legislative review; providing for termination; revising provisions with
respect to deficit assessments; authorizing issuance of bonds on behalf of
the association; providing an effective date.
-was read the first time by title and referred to the Committees on
Insurance, Finance & Taxation and Appropriations.

I1

F.S.; revising certain definitions; amending s. 440.05, F.S.; pro-riding for
election of exemption; providing for revocation of an election; amending s.
440.055, F.S.; requiring notices of noncoverage be posted at worksites;
amending s. 440.075, F.S.; providing for effect of election of exemption;
amending s. 440.09, F.S.; requiring an employer to pay compensation or

E OF REPRESENTATIVES November 1, 1993

By Representative Cosgrove-
HM 51-C-A memorial to the Congress of the United States urging
adoption of legislation concerning natural disasters and related relief
efforts and urging leadership by the Florida delegation.
-was read the first time by title and referred to the Committee on
Insurance.

By Representative De Grandy-
HM 61-C-A memorial to the Congress of the United States urging
creation of a federal catastrophe fund and federal tax deductions to
insurance companies for use after catastrophic events.
-was read the first time by title and referred to the Committee on
Insurance.

By Representative Cosgrove-
HB 69-C-A bill to be entitled An act relating to public records and
public meetings; exempting certain dispute resolution proceedings
conducted by the Department of Insurance and documents connected with
such proceedings from certain public records and public meetings
requirements; providing for future review and repeal; providing a finding
of public necessity; providing a contingent effective date.
-was read the first time by title and referred to the Committee on
Governmental Operations.

By Representative Cosgrove-
HB 71-C-A bill to be entitled An act relating to public records;
exempting certain plans and annual reports submitted by insurers to the
Department of Insurance from certain public records requirements;
providing for future review and repeal; providing a finding of public
necessity; providing a contingent effective date.
-was read the first time by title and referred to the Committee on
Governmental Operations.

By Representative Cosgrove-
HB 73-C-A bill to be entitled An act relating to public records;
exempting certain reports of insured values under certain insurance
policies submitted to the State Board of Administration from public
records requirements; providing for future review and repeal; providing a
finding of public necessity; providing a contingent effective date.
-was read the first time by title and referred to the Committee on
Governmental Operations.

By Representative King-
HB 79-C-A bill to be entitled An act relating to workers'
compensation; amending s. 440.20, F.S.; establishing a deductible for
workers' compensation claims; authorizing employers to pay the
deductible; requiring workers' compensation insurance rates to reflect such
deductible; providing applications; providing an effective date.
-was read the first time by title and referred to the Committees on
Commerce, Finance & Taxation and Appropriations.

By Representatives Lippman, Mackey and Jones-
HB 85-C-A bill to be entitled An act relating to workers'
compensation; amending s. 27.34, F.S.; authorizing the Insurance
Commissioner to contract with state attorneys to prosecute certain
criminal violations and to contribute funds to pay salaries and expenses of
certain assistant state attorneys for certain purposes; creating s. 287.044,
F.S.; providing for compliance with chapter 440, F.S.; providing
definitions; requiring a sworn statement prior to bidding on a contract
under certain circumstances; amending s. 287.058, F.S.; requiring certain
contract documents to contain certain payment security provisions;
amending s. 440.015, F.S.; providing legislative intent; amending s. 440.02,

JOURNAL OF THE HOUSI

furnish certain benefits under certain circumstances; providing criteria;
revising coverage provisions related to injuries due to alcohol or drug abuse;
denying an employee entitlement to certain benefits under certain
circumstances; amending s. 440.092, F.S.; clarifying application of certain
benefits provisions to traveling employees under certain circumstances;
amending s. 440.10, F.S.; deleting a penalty; authorizing the Division of
Workers' Compensation of the Department of Labor and Employment
Security to assess a penalty against certain employers; amending s. 440.101,
F.S.; revising legislative intent with regard to drug-free workplaces;
amending s. 440.102, F.S.; revising provisions related to the drug-free
workplace program; revising definitions; providing certain employers are
ineligible for certain discounts; providing additional requirements for
followup testing; providing for payment of medical treatments; providing
a penalty; providing that certain screening and testing need not comply
with certain rules; providing additional employer protection provisions;
revising provisions relating to confidentiality of drug test results; adding
provisions relating to public employees in safety-sensitive or special-risk
positions; prohibiting an employer from refusing to deny certain benefits;
creating s. 440.103, F.S.; requiring proof of secured compensation as a
condition to receiving a building permit; creating s. 440.104, F.S.; providing
for civil actions for competitive bidders; creating s. 440.105, F.S.; requiring
reports of suspected fraudulent acts to the Bureau of Workers'
Compensation Fraud; limiting liability; prohibiting certain activities;
providing penalties; creating s. 440.106, F.S.; providing for civil remedies,
stop-work orders, and liens under certain circumstances; authorizing the
division to bring certain actions; creating s. 440.107, F.S.; providing powers
of the division to enforce certain employer compliance; authorizing the
division to bring certain actions in circuit court; providing penalties;
providing that certain judgments constitute liens under certain
circumstances; providing for application of the Administrative Procedures
Act; providing for disposition of penalties; authorizing law enforcement
agencies to assist the division; amending s. 440.11, F.S.; expanding
provisions with respect to exclusiveness of liability; amending s. 440.13,
F.S.; providing definitions; requiring employers to provide certain medical
services and supplies; providing for eligibility of providers; requiring notice
of treatment to carriers; providing for independent medical examinations;
providing for utilization review; providing for resolving utilization and
reimbursement disputes; providing for certification of expert medical
advisors; providing for witness fees; providing for audits by the division;
providing for creation of a three-member panel; providing duties;
providing for managed care; providing for a community health purchasing
alliance; providing for removal of physicians from lists of those authorized
to render medical care under certain conditions; providing for payment of
medical fees and employee copayment; providing practice parameters for
outpatient services; amending s. 440.135, F.S.; providing legislative intent
regarding certain pilot programs; providing for additional pilot programs;
specifying criteria; amending s. 440.15, F.S.; revising criteria relating to
total and permanent disability; requiring certain reports to the division of
all earned income of certain temporarily totally disabled persons; requiring
wage-loss and job-search information of temporarily partially disabled
persons; providing for repayment of certain benefits under certain
circumstances; providing for coordination of benefits; amending s. 440.151,
F.S.; specifying application to benefits payable rather than compensation;
amending s. 440.16, F.S.; revising certain provisions relating to
compensation for death; amending s. 440.185, F.S.; revising certain
provisions relating to notice of injury or death; deleting a requirement that
the division forward certain files to a judge of compensation claims;
amending s. 440.19, F.S.; providing additional claim filing requirements;
creating s. 440.191, F.S.; creating the Employment Assistance and
Ombudsman Office within the Division of Workers' Compensation;
providing duties of the office; amending s. 440.20, F.S.; requiring the
division to monitor the timely payment of compensation benefits;
providing fines; amending s. 440.21, F.S.; deleting a penalty; creating s.
440.211, F.S.; providing for authorization of collective bargaining
agreements; providing criteria; amending s. 440.25, F.S.; revising provisions
relating to certain hearings held by a judge of compensation claims;
revising procedures relating to such hearings; authorizing the division to
adopt rules; amending s. 440.29, F.S.; requiring receipt of certain medical
reports into evidence; amending s. 440.32, F.S.; expanding provisions with
respect to assessment of costs in proceedings brought without reasonable

grounds; providing an administrative penalty; amending s. 440.34, F.S.;
providing for award of extraordinary fees under certain circumstances;

November 1, 1993

providing penalties; amending s. 489.115, F.S.; requiring the Construction
Industry Licensing Board to specify by rule the content of certain
continuing education courses under certain circumstances; providing for
transfer of certain functions of the Department of Labor and Employment
Security to the Department of Insurance; creating s. 624.461, F.S.;

E OF REPRESENTATIVES 5

revising criteria for awarding certain fees; deleting a penalty; amending s.
440.38, F.S.; revising provisions relating to securing the payment of
compensation by employers; requiring the division to adopt rules;
permitting employers to obtain coverage by use of a 24-hour health
insurance policy; specifying certain coverages; deleting a penalty;
amending s. 440.381, F.S.; requiring updating of certain insurance
applications; amending s. 440.385, F.S.; revising provisions relating to the
Florida Self-Insurers Guaranty Association; amending s. 440.386, F.S.;
clarifying provisions with respect to individual self-insurers' insolvency;
amending s. 440.39, F.S.; prohibiting a company from requiring a waiver
of certain provisions; creating s. 440.4415, F.S.; creating the Workers'
Compensation Oversight Board; providing for membership; duties and
responsibilities; requiring the board to review the workers' compensation
system and to submit a report to the Governor and the Legislature;
specifying contents of the report; amending s. 440.442, F.S.; revising and
expanding provisions with respect to the Code of Judicial Conduct;
providing that commissioners appointed to the Workers' Compensation
Appeals Commission shall observe and abide by the Code of Judicial
Conduct; amending s. 440.45, F.S.; revising provisions relating to
membership of the statewide nominating commission; requiring reports;
amending s. 440.48, F.S.; requiring the department annually report to the
Governor and the Legislature on administration of chapter 440, F.S.;
requiring the division to complete a quarterly analysis of injuries resulting
in claims; requiring the division to submit an annual closed claim report
to the Governor and the Legislature; requiring the division to engage in
certain continuous studies; amending s. 440.49, F.S.; revising provisions
relating to reemployment of injured workers and rehabilitation; providing
definitions; providing intent; providing for reemployment status reviews
and reports; providing for reemployment assessments; providing for
medical care coordination and reemployment services; providing for
training and education; specifying provider qualifications; requiring the
division to monitor selection of providers and provision of services; revising
provisions related to limiting liability for subsequent injuries through the
Special Disabilities Trust Fund; providing for a preferred worker program;
providing for temporary compensation and medical benefits; revising the
list of compensable injuries; amending s. 440.50, F.S.; authorizing the
division to transfer certain amounts from the Workers' Compensation
Administration Trust Fund to the Insurance Commissioner's Prosecutorial
Account in the Insurance Commissioner's Regulatory Trust Fund;
amending ss. 440.51 and 440.515, F.S., to conform; renumbering and
amending ss. 440.57, 440.5705, 440.571, 440.575, and 440.58, F.S., to
conform; amending s. 440.572, F.S.; correcting cross references; creating s.
440.593, F.S.; providing for data collection by the division; creating s.
440.595, F.S.; establishing a pilot program for designated physicians;
requiring the department to make an interim report; creating the "Florida
Occupational Safety and Health Act," consisting of ss. 442.001, 442.002,
442.003, 442.004, 442.005, 442.006, 442.007, 442.008, 442.009, 422.010,
442.011, 442.012, 442.013, 442.014, 442.015, 442.016, 442.017, 442.018,
442.019, 442.020, 442.021, and 442.022, F.S.; renumbering and amending
portions of ss. 440.09,440.46, and 440.56, F.S.; renumbering s. 440.152, F.S.;
providing a short title; providing definitions; providing legislative intent;
authorizing the division to adopt rules; providing powers and duties of the
division; providing employer responsibilities related to safety; providing
for jurisdiction and authority of the division; providing for a right of entry;
requiring the division to develop safety and health programs for certain
employers; requiring safety consultations with policyholders under certain
circumstances; providing criteria; authorizing the division to adopt rules
related to such committees; providing penalties for employers who fail or
refuse to comply with division rules; requiring the division to cooperate
with the Federal Government; providing for cancellation of contracts of
certain employers under certain circumstances; providing for expenses of
administration; authorizing the division to enter and inspect places of
employment for purposes of compliance; providing a penalty for refusing
to admit; providing employees' rights and responsibilities; providing for
compliance; prohibiting making false statements to carriers; providing
penalties for carriers under certain circumstances; providing preemptive
authority to the division to adopt certain rules; prohibiting certain acts;

6 JOURNAL OF THE HOUSE

providing a definition; amending s. 624.462, F.S.; providing for
participation by commercial self-insurance funds in the Florida Self-
Insurer's Guaranty Fund Association; amending ss. 624.463, 624.473,
624.474, 624.476, 624.480, 624.482, 624.484, 624.486, and 624.488, F.S., to
conform; creating s. 624.4741, F.S.; providing for venue in assessment
actions; creating s. 624.522, F.S.; creating the Insurance Commissioner's
prosecutorial account within the Insurance Commissioner's Regulatory
Trust Fund; amending s. 627.041, F.S.; correcting a cross reference;
amending s. 627.0915, F.S.; requiring the Department of Insurance to
provide for giving consideration in setting rates to certain employers who
implement certain safety programs; creating s. 627.0916, F.S.; providing for
rates of agricultural horse farms; amending s. 627.092, F.S.; placing the
Workers' Compensation Administrator within the Division of Insurer
Services; amending s. 627.101, F.S.; requiring the department to publish
certain approved filings; providing for effect and operation of certain
filings; creating s. 627.212, F.S.; authorizing the department to approve
certain workers' compensation coverage insurance rating plans; amending
s. 627.311, F.S., relating to self-insurer participation in equitable
apportionment; amending s. 627.4133, F.S.; excluding workers'
compensation insurance from certain notice provisions; creating part XXII
of chapter 627; creating the Workers' Compensation Insurance Purchasing
Alliance within the Department of Insurance; providing powers, duties,
and responsibilities of the alliance; providing for membership; creating
part V of chapter 631, F.S.; creating the "Florida Group Self-Insurer's Fund
Guaranty Association Act"; providing definitions; providing purposes;
creating the Florida Group Self-insurer's Guaranty Fund Association,
Incorporated; providing for a board of directors; providing powers and
duties of the association; authorizing the board to make assessments;
requiring the association to submit a plan of operation to the division;
providing for preventing self-insurer's fund insolvencies or impairments;
providing for public disclosure of certain records of the association;
providing for confidentiality of certain reports and information of the
association; providing for liability for unpaid claims; providing immunity;
prohibiting certain advertisements or solicitations; providing for the
establishment of a legal counsel in certain proceedings before the
department; providing duties of the legal counsel; providing for
assumption by the association of certain liabilities of the Certified
Pulpwood Dealers Self-Insurers Fund; creating the Workers'
Compensation Small Employer Self-Insurance Fund in the Department of
Insurance; providing for coverage, eligibility, and administration of the
fund; providing duties and responsibilities of the Insurance Commissioner;
providing for a board of trustees; amending s. 772.102, F.S.; including
certain activities relating to workers' compensation within a list of criminal
activities; amending s. 895.02, F.S.; including certain activities relating to
workers' compensation within a list of racketeering activities; repealing s.
440.077, F.S., relating to the effect of electing to be exempt; repealing s.
440.20(12), F.S., relating to lump-sum payments; repealing s. 440.37, F.S.,
relating to misrepresentation and fraudulent activities; repealing s. 440.43,
F.S., relating to a penalty for failure to secure payment of compensation;
repealing s. 440.56(4), F.S., relating to employers with work-related
injuries; repealing s. 440.59, F.S., relating to risk management reports;
providing for appropriations; providing an effective date.
-was read the first time by title and referred to the Committees on
Commerce, Finance & Taxation and Appropriations.

By Representative Mackey--
HB 89-C-A bill to be entitled An act relating to trust funds; creating
the Workers' Compensation Small Employer Self-Insurance Trust Fund
within the State Treasury; providing for annual appropriation of moneys
from the Workers' Compensation Administration Trust Fund to the
Workers' Compensation Small Employer Self-Insurance Trust Fund for
certain purposes; providing for future review and termination or re-
creation of the fund; providing an appropriation; providing a contingent
effective date.
-was read the first time by title and referred to the Committees on

Commerce, Finance & Taxation and Appropriations.

By Representatives Martinez, Logan, Ritchie and Feren-
HB 91-C-A bill to be entitled An act relating to weapons and firearms;
amending s. 790.17, F.S.; prohibiting certain transfer to a minor of a

E OF REPRESENTATIVES

November 1, 1993

weapon, or electric weapon or device; prohibiting sale or transfer to a minor
of a firearm and providing that a violation constitutes a third-degree
felony; repealing s. 790.174(3), F.S., relating to the definition of the term
"minor" for purposes of the law that requires the safe storage of a firearm;
amending s. 790.175, F.S.; redefining the term "minor" for purposes of the
requirement that the purchaser of a firearm be informed that it is unlawful
to store or leave a firearm within access of a minor; amending s. 790.18,
F.S.; prohibiting an arms dealer from selling or transferring a firearm or
certain other weapons to a minor; increasing the penalty for a violation
from a misdemeanor to a felony; amending s. 790.22, F.S.; requiring
parental consent for minors to use certain guns or electric weapons or
devices; increasing penalties for a violation by an adult; providing penalties
for a violation by a minor; prohibiting a minor from possessing a firearm;
providing certain exceptions; prohibiting adults responsible for a minor
from knowingly permitting the minor to unlawfully possess a firearm;
providing penalties for a violation by an adult; providing penalties for a
violation by a minor; providing for the seizure and disposal of a firearm or
certain guns or electric weapons or devices that are used or possessed
unlawfully by a minor; providing that such provisions are supplemental to
certain other criminal sanctions; providing for the secure detention of a
minor charged with a violation of certain provisions of ch. 790, F.S.,
pending a court hearing; amending s. 790.23, F.S.; prohibiting felons, and
juveniles found to have committed a delinquent act that would be a felony
if committed by an adult, from using or possessing a weapon or firearm
under certain conditions; providing an exception; providing penalties;
amending s. 790.25, F.S.; limiting authorization for possession in private
conveyance to persons over 18; providing an effective date.
-was read the first time by title and referred to the Committees on
Criminal Justice and Appropriations.

By Representatives Lippman and Mackey-
HB 99-C-A bill to be entitled An act relating to workers'
compensation; amending s. 20.171, F.S.; establishing a Workers'
Compensation Appellate Commission in the Department of Labor and
Employment Security; providing for appointing judges of the commission;
providing terms; providing powers and duties of the commission;
authorizing the commission to charge certain fees; providing for a clerk of
the commission; providing duties of the clerk; requiring a report; amending
s. 27.34, F.S.; authorizing the Insurance Commissioner to contract with
state attorneys to prosecute certain criminal violations and to contribute
funds to pay salaries and expenses of certain assistant state attorneys for
certain purposes; creating s. 287.044, F.S.; providing for compliance with
chapter 440, F.S.; providing definitions; requiring a sworn statement prior
to bidding on a contract under certain circumstances; amending s. 287.058,
F.S.; requiring certain contract documents to contain certain payment
security provisions; amending s. 408.7056, F.S.; clarifying application of the
Statewide Provider and Subscriber Assistance Program; amending s.
440.015, F.S.; providing legislative intent; amending s. 440.02, F.S.; revising
certain definitions; providing additional definitions; amending s. 440.05,
F.S.; providing for election of exemption; providing for revocation of an
election; amending s. 440.055, F.S.; requiring notices of noncoverage be
posted at worksites; providing for a penalty; amending s. 440.075, F.S.;
providing for effect of exemption election; amending s. 440.09, F.S.;
revising coverage provisions related to injuries due to alcohol or drug abuse;
specifying compensable injuries; amending s. 440.10, F.S.; deleting a
requirement that contractors or subcontractors show proof of securing
compensation to receive a building permit; deleting a penalty; authorizing
the Division of Workers' Compensation of the Department of Labor and
Employment Security to assess a penalty against certain employers;
amending s. 440.101, F.S.; revising legislative intent; amending s. 440.102,
F.S.; revising provisions related to the drug-free workplace program;
providing that certain employers are ineligible for certain discounts;
providing additional requirements for followup testing; providing for
payment of medical treatments; providing a penalty; providing that certain
screening and testing need not comply with certain rules; providing
additional employer protection provisions; creating s. 440.103, F.S.;
requiring proof of secured compensation as a condition to receiving a
building permit; creating s. 440.104, F.S.; providing for civil actions for

competitive bidders; creating s. 440.105, F.S.; requiring reporting of
suspected fraudulent acts to the Bureau of Workers' Compensation Fraud;
limiting liability; prohibiting certain activities; providing penalties;

JOURNAL OF THE HOUSI

creating s. 440.1055, F.S.; requiring claim forms to contain a specified
notice; requiring claimants to sign the forms; creating s. 440.106, F.S.;
providing for civil remedies, stop-work orders, and liens under certain
circumstances; authorizing the division to bring certain actions; creating s.
440.107, F.S.; providing division powers to enforce employer compliance
with coverage requirements; creating s. 440.108, F.S.; requiring certain
persons to report certain criminal activity to the department; providing
duties and responsibilities of the Bureau of Workers' Compensation
Insurance Fraud; amending s. 440.13, F.S.; providing definitions; requiring
employers to provide certain medical services and supplies; providing for
eligibility of providers; requiring notice of treatment to carriers; providing
for independent medical examinations; providing for utilization review;
providing for resolving utilization and reimbursement disputes; providing
for certification of expert medical advisors; providing for witness fees;
providing for audits by the division; creating s. 440.131, F.S.; providing
health and service provider reimbursement schedules; providing a
disability rehabilitation schedule; providing practice parameters; creating
s. 440.134, F.S.; providing for a workers' compensation certified health
maintenance organization; providing definitions; providing for
certification of such organization; providing for applications; providing for
renewal; providing requirements for such certification; requiring a plan of
operation; specifying criteria; providing for reimbursement of certain fees
and rates; providing for auditing such organization; providing a grievance
procedure; providing for dissemination of information; authorizing the
department to adopt rules; providing prohibitions; providing for continued
eligibility of certain certificates; creating s. 440.1341, F.S.; providing for
certain contracts with such organization; creating s. 440.1345, F.S.;
specifying criteria for provider contracts with such organization; creating
s. 440.1346, F.S.; providing for suspension or revocation of certificates;
providing for an administrative fine; requiring notice of actions to the
Department of Insurance; providing a penalty; creating s. 440.1347, F.S.;
requiring certain services to be provided by such organizations; amending
s. 440.135, F.S.; providing legislative intent regarding certain pilot
programs; providing for additional pilot programs; specifying criteria;
amending s. 440.15, F.S.; providing legislative intent; providing definitions;
providing for compensation for temporary disability; providing for
determination of impairment upon maximum medical improvement;
providing for impairment and extended benefits; providing for
commutation of benefits; providing for coverage for subsequent injuries;
specifying application when an employee becomes an inmate of an
institution or when an employee refuses employment; providing an
obligation to rehire; providing wage credits as an incentive to rehire;
providing for repayment; requiring full-pay status for certain law
enforcement officers; requiring the three-member panel to establish and
use a uniform permanent impairment guide; creating s. 440.1501, F.S.;
requiring employers to notify certain employees of certain benefits;
amending s. 440.151, F.S.; clarifying conditions for payment of certain
benefits; revising a definition; amending s. 440.152, F.S.; revising
procedures for coordination of certain benefits; amending s. 440.16, F.S.;
revising coverage for actual funeral expenses; amending s. 440.185, F.S.;
revising certain provisions related to notice of injury or death; deleting a
requirement that the division forward certain files to a judge of
compensation claims; amending s. 440.19, F.S.; revising provisions related
to filing petitions for benefits; specifying limitations; creating s. 440.191,
F.S.; providing for informal resolution of disputes under certain
circumstances; creating the Employment Assistance Office within the
Division of Workers' Compensation; providing duties of the office; creating
s. 440.192, F.S.; providing procedure for resolving benefit disputes;
amending s. 440.20, F.S.; revising provisions specifying the timely payment
of compensation benefits; providing penalties; creating s. 440.211, F.S.;
providing for monitoring and audits by the division; creating s. 440.212,
F.S.; providing authorization for collective bargaining agreements;
providing criteria; amending s. 440.25, F.S.; revising provisions related to
procedures for mediation and certain hearings held by a judge of
compensation claims; creating s. 440.26, F.S.; providing procedures for
resolving certain medical improvement or permanent impairment
disputes; amending s. 440.271, F.S.; providing that review of any order of
a judge of compensation claims shall be by appeal to the Workers'
Compensation Appellate Commission; creating s. 440.272, F.S.; providing

for review of orders of the Workers' Compensation Appellate Commission;
amending s. 440.28, F.S.; clarifying provisions related to modifying orders;
amending s. 440.29, F.S.; requiring receipt of certain medical reports into

November 1, 1993

Department of Labor and Employment Security to the Department of
Insurance; creating s. 624.461, F.S.; providing a definition; amending s.
624.462, F.S.; providing for participation by commercial self-insurance
funds in the Florida Self-Insurer's Guaranty Fund Association; amending
ss. 624.463, 624.473, 624.474, 624.476, 624.480, 624.482, 624.484, 624.486,

E OF REPRESENTATIVES 7

evidence; amending s. 440.32, F.S.; expanding provisions with respect to
assessment of costs in proceedings brought without reasonable grounds;
amending s. 440.34, F.S.; revising provisions relating to attorney's fees;
providing a limitation; providing for award of an extraordinary fees;
providing criteria; deleting a penalty; creating s. 440.345, F.S.; requiring
reporting of attorney's fees under certain circumstances; amending s.
440.38, F.S.; revising provisions related to securing the payment of
compensation by employers; requiring the division to adopt rules;
permitting employers to obtain coverage by use of a 24-hour health
insurance policy; specifying certain coverages; deleting a penalty;
amending s. 440.381, F.S.; requiring updating of certain insurance
applications; providing for joint liability for a certain penalty under certain
circumstances; amending s. 440.442, F.S.; revising provisions relating to the
Code of Judicial Conduct; providing that judges of the Workers'
Compensation Appellate Commission must observe and abide by such
code; amending s. 440.44, F.S.; deleting authority of the division to appoint
and prescribe duties of bureau chiefs; amending s. 440.45, F.S.; providing
for an Office of Judges of Compensation Claims; providing powers and
duties of the office; authorizing the office to adopt rules; requiring the
office to issue a report; amending s. 440.48, F.S.; requiring the department
annually report to the Governor and the Legislature on administration of
chapter 440, F.S.; requiring the division to complete an annual analysis of
injuries resulting in claims; requiring the division to engage in certain
continuous studies; authorizing the division to obtain certain information
from certain persons and entities; amending s. 440.49, F.S.; revising
provisions relating to reemployment of injured workers and rehabilitation;
providing definitions; providing intent; providing for reemployment status
reviews and reports; providing for reemployment assessments; providing
for medical care coordination and reemployment services; providing for
training and education; specifying provider qualifications; requiring the
division to monitor selection of providers and provision of services;
providing for limiting liability for subsequent injuries through the Special
Disabilities Trust Fund; amending s. 440.50, F.S.; authorizing the division
to transfer certain amounts from the Workers' Compensation
Administrative Trust Fund to the Insurance Commissioner's Prosecutorial
Trust Fund; amending s. 440.51, F.S.; revising provisions relating to
determining expenses of administration; renumbering and amending ss.
440.57, 440.5705, 440.571, 440.575, and 440.58, F.S., to conform; creating
s. 440.592, F.S.; providing for confidentiality of information maintained by
the division; creating s. 440.593, F.S.; providing for data collection by the
division; creating s. 440.595, F.S.; establishing a pilot program for legal
assistance to injured workers; requiring the department to make an interim
report; creating s. 440.80, F.S.; establishing the Workers' Compensation
Labor-Management Board; providing for membership; providing powers
and duties of the board; providing for an executive director; creating the
"Florida Occupational Safety and Health Act," consisting of ss. 442.001,
442.002, 442.003, 442.004, 442.005, 442.006, 442.007, 442.008, 442.009,
442.0105, 442.011, 442.012, 442.013, 442.014, 442.015, 442.016, 442.017,
442.018, 442.019, 442.020, 442.021, 442.022, and 442.023, F.S.; providing a
short title; providing definitions; providing legislative intent; providing for
safety inspection of employers in the construction industry; revising
timeframes for submission of programs to the division for approval;
providing employer responsibilities for employee safety; providing for
power, jurisdiction, and authority of the division; authorizing the division
to enter and inspect places of employment for purposes of compliance;
providing for identification of employers with employees with certain
work-related injuries; providing for carrier consultations; providing for
establishing workplace safety committees; providing penalties for
employers under certain circumstances; providing for division cooperation
with the Federal Government; providing for cancellation of coverage of
certain employers; providing for expenses of administration; providing a
penalty for refusing to admit; providing employees' rights and
responsibilities; providing for confidentiality; providing for review and
repeal; providing for compliance; prohibiting making false statements to
carriers; providing penalties for carriers under certain circumstances;
providing preemptive authority to the division to adopt certain rules;
prohibiting certain acts; providing for transfer of certain functions of the

JOURNAL OF THE HOUSE OF REPRESENTATIVES

and 624.488, F.S., to conform; amending s. 627.041, F.S., to conform;
creating s. 624.4741, F.S.; providing for venue in assessment actions;
creating s. 624.522, F.S.; creating the Insurance Commissioner's
Prosecutorial Trust Fund; specifying uses of moneys in the fund; creating
s. 627.212, F.S.; requiring the department to approve certain workers'
compensation coverage insurance rating plans; providing for discounts for
certain programs; amending s. 627.311, F.S.; revising provisions relating to
provision of a joint underwriting plan for certain insurers; specifying
criteria for such plan; creating part V of chapter 631, F.S.; creating the
"Florida Self-Insurer's Fund Guaranty Association Act"; providing
definitions; providing purposes; providing for a board of directors;
providing powers and duties of the association; requiring the association
to submit a plan of operation to the division; providing for preventing self-
insurer's fund insolvencies or impairments; providing for public disclosure
of certain records of the association; providing for confidentiality of certain
reports and information of the association; providing for liability for
unpaid claims; providing immunity; prohibiting certain advertisements or
solicitations; providing for the establishment of a legal counsel in certain
proceedings before the department; providing duties of the legal counsel;
amending s. 641.2017, F.S.; authorizing certain health maintenance
organizations to enter into arrangements with carriers to provide medical
services under certain circumstances; amending s. 641.31, F.S.; prohibiting
excessive rates charged by a health maintenance organization to certain
carriers; creating s. 641.50, F.S.; entitling certain health maintenance
organizations to enter into certain contracts; amending s. 713.08, F.S.;
prohibiting certain persons from perfecting liens under certain
circumstances; repealing ss. 440.077, 440.37, 440.40, 440.43, 440.56, and
440.59, F.S., and 440.51(7) and (8), F.S., relating to effect of election by
certain persons to be exempt, misrepresentation and fraudulent activities,
compensation notice, penalty for failure to secure payment of
compensation, safety rules and provisions, risk management report, and
accumulated cost records and employer account numbers, respectively;
providing severability; providing an effective date.
-was read the first time by title and referred to the Committees on
Commerce, Finance & Taxation and Appropriations.

Motion
Without objection, on motion by Rep. Wallace, HCR 67-C was
introduced.

Motion to Recess
Rep. Wallace moved that the House stand in recess for the purpose of
holding committee meetings and conducting other House business, to
reconvene at 1:30 p.m., Tuesday, November 2 or upon call of the Speaker.
The motion was agreed to.

Introduction and Reference

By Representative Cosgrove-
HB 1-C-A bill to be entitled An act relating to license plates; amending
s. 320.06, F.S.; deleting reference to counties on motor vehicle license plates
and providing for the inclusion of the words "Sunshine State" on such
license plates; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Cosgrove-
HB 3-C-A bill to be entitled An act relating to construction
contractors; creating s. 489.135, F.S.; providing a definition; declaring
contractors to be trustees of certain funds received for certain purposes;
specifying uses of such funds; establishing a presumption under certain
circumstances; providing a penalty; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative R. Saunders--

HB 5-C-A bill to be entitled An act relating to elections; changing the
date of the first primary election in 1994; preserving the original schedule
of other dates tied to that primary election; providing an effective date.

Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives McMahan and Ascherl-
HB 7-C-A bill to be entitled An act relating to supplemental corporate
fees; amending s. 617.01225, F.S.; exempting certain nonprofit corporations
from such fee; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Stafford and Rayson-
HB 9-C-A bill to be entitled An act relating to weapons and firearms;
amending s. 790.23, F.S.; prohibiting juveniles found to have committed a
delinquent act that would be a felony if committed by an adult from
owning or possessing a weapon or firearm during the period of the court's
continuing jurisdiction under ch. 39, F.S.; amending ss. 790.06 and 790.065,
F.S., relating to concealed weapons permits and sale and purchase of
handguns, to conform; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Abrams, Sanderson, Thrasher, Bloom, Burke, Kelly,
Geller, Armesto-Garcia, Tobin, Stafford, Morse, Feren, Jones, Schultz,
Valdes, Barreiro, Cosgrove, Rush, Albright, Chestnut, King, Ireland and
Lawson-
HB 11-C-A bill to be entitled An act relating to motor vehicle license
plates; creating s. 320.08091, F.S.; providing legislative intent; providing for
a Super Bowl XXIX license plate; providing for application and issuance
of such plates; providing for fees; providing for the disposition of fees;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Warner, Hanson, Sanderson, Hawkes, Bainter,
Merchant, Benson, McClure, Jacobs and Albright-
HB 17-C-A bill to be entitled An act relating to young criminal
offenders; amending s. 39.01, F.S.; revising the definition of "child" and
"serious habitual juvenile offender" to mean persons under the age of 16
years for purposes of part II of ch. 39, F.S., relating to delinquency; revising
ss. 39.047, 39.052, 39.057, and 39.062, F.S., relating to intake and case
management, hearings, boot camps for children, and transfer of children,
to conform; amending ch. 958, F.S.; creating the "Youthful Offender Act
of 1994"; providing legislative intent; providing definitions; providing
sentencing criteria and judicial disposition procedure; providing for
suspension of sentence by the court; providing for presentence reports;
authorizing extension of limits of confinement in specified circumstances;
providing for designation of institutions and programs and for assignment
of youthful offenders; providing for certain required participation in
activities; providing for sealing, expunction, and dissemination of records;
providing penalties for violation of probation or community control;
authorizing mutual participation agreements; amending s. 958.19, F.S.,
relating to the youth corrections program, to conform to the Youthful
Offender Act of 1994; amending ss. 947.16, 794.011, 817.564, 893.13, and
893.147, F.S., relating to parole eligibility, sexual battery, imitation
controlled substances, controlled substance violations, and drug
paraphernalia, to conform; amending s. 316.635, F.S.; providing that for
purposes of traffic violations involving criminal offenses, "minor" means a
child under the age of 16; amending ss. 322.055 and 322.056, F.S., relating
to revocation, suspension, or delay of driver licenses, to conform; providing
an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Stafford-
HR 19-C-A resolution designating the week of June 1 through June
7, 1994, as "Post-Polio Syndrome Awareness Week,"

First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

8

November 1, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

By Representatives Mackenzie, Arnall, Abrams and Mortham-
HB 21-C-A bill to be entitled An act relating to criminal justice;
amending s. 39.043, F.S.; deleting certain prohibitions on the use of
detention with respect to a child who is alleged to have committed a
delinquent act or violation of law; amending s. 39.044, F.S.; providing for
the detention of a child who is charged with unlawful possession of a
firearm; amending s. 784.05, F.S.; redefining the term "minor" for purposes
of imposing enhanced penalties for the offense of storing or leaving a
loaded firearm within the reach of a minor; amending s. 790.17, F.S.;
prohibiting the sale or transfer of a firearm to a minor or to a person of
unsound mind; providing a penalty; amending s. 790.174, F.S.; redefining
the term "minor" for purposes of the law that requires the safe storage of
a firearm; amending s. 790.175, F.S.; redefining the term "minor" for
purposes of the requirement that the purchaser of a firearm be informed
that it is unlawful to store or leave a firearm within access of a minor;
amending s. 790.18, F.S.; prohibiting an arms dealer from selling or
transferring a firearm or certain other weapons to a minor; providing a
penalty; amending s. 790.22, F.S.; revising the age at which an unsupervised
minor is prohibited from using certain guns or electric weapons or devices;
prohibiting a minor from possessing a firearm; providing certain
exceptions; prohibiting the parent or guardian of a minor from knowingly
permitting the minor to unlawfully possess a firearm; providing penalties;
providing for the seizure of a firearm that is possessed or used unlawfully
by a minor; providing that such provisions are supplemental to certain
other criminal sanctions; providing an effective date.

By Representative Mitchell-
HB 29-C-A bill to be entitled An act relating to viticulture; amending
s. 561.221, F.S.; revising requirements relating to the conduct of wine
tasting and sales by certified Florida Farm Wineries at specified events;
amending s. 564.06, F.S.; eliminating future repeal of a provision requiring
deposit into the Viticulture Trust Fund of a portion of the revenues
collected from the excise taxes imposed on wine; amending s. 599.002, F.S.;
increasing and revising the membership of the Viticulture Advisory
Council; increasing terms of office; revising responsibilities; eliminating
future review and repeal; amending s. 599.003, F.S.; revising the State
Viticulture Plan; eliminating future repeal; amending s. 599.012, F.S.;
providing for apportionment and use of appropriations to the Viticulture
Trust Fund; repealing s. 599.001(4), F.S., relating to future repeal of the
legislative declaration of public policy on viticulture; repealing s.
599.012(3), F.S., relating to future repeal of the Viticulture Trust Fund;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Klein-
HB 35-C-A bill to be entitled An act relating to weapons and firearms;
creating s. 790.222, F.S.; defining the term "assault weapon"; prohibiting
certain acts with respect to assault weapons; providing exceptions;
providing penalties; providing for seizure and forfeiture; providing a grace
period for compliance; providing an effective date.

Placed in the Committee on Rules & Calendar, the Speaker having ruled Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call. the measure was outside the purview of the Call.

By Representative R. Saunders-
HB 25-C-A bill to be entitled An act relating to criminal justice;
creating the "High Noon Act of 1994"; amending s. 782.04, F.S.; expanding
the elements of murder in the second degree; amending s. 790.10, F.S.;
revising language and increasing penalties for unlawful display or
exhibition of dangerous weapons or firearms; amending s. 790.115, F.S.;
revising language and increasing penalties for unlawful displaying,
possessing, or discharging weapons or firearms on school property;
amending s. 790.15, F.S.; expanding elements and increasing penalties for
discharging firearms over public ways or occupied premises; amending s.
790.151, F.S.; increasing penalties for using firearms while under the
influence; amending s. 790.16, F.S.; expanding elements and increasing
penalties for discharging machine guns over public ways and shooting or
discharging firearms or machine guns in public places; amending s. 790.17,
F.S.; revising language and providing penalties for furnishing weapons or
firearms to minors or persons of unsound mind; amending s. 790.174, F.S.;
revising elements of the safe storage of firearms requirement; amending s.
790.175, F.S.; revising elements and increasing penalties relating to
required warnings upon transfer or sale of firearms; amending s. 790.18,
F.S.; revising elements and increasing penalties for selling arms to minors
by dealers; amending s. 790.19, F.S.; revising elements and increasing
penalties for shooting or throwing into dwellings, buildings, vehicles, or
other conveyances; amending s. 790.22, F.S.; revising elements and
increasing penalties relating to use and possession of weapons and firearms
by minors, and authorizing seizure; amending s. 921.0016, F.S.; adding an
aggravating circumstance for purposes of departure sentences from
recommended guidelines sentences; amending s. 921.141, F.S.; adding an
aggravating circumstance for purposes of capital felony sentencing;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Lawson and Hawkes-
HB 27-C-A bill to be entitled An act relating to the State Board of
Administration; amending s. 110.205, F.S.; exempting all officers and
employees of the State Board of Administration from the Career Service
System; amending s. 215.47, F.S., regarding authorized investments;
permitting the board to invest in certain contracts; providing an effective
date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Rudd-
HB 37-C-A bill to be entitled An act relating to juvenile justice;
amending ss. 39.001 and 39.002, F.S.; revising legislative intent with respect
to juvenile proceedings; amending s. 39.039, F.S.; authorizing the release
for publication of specified information after adjudication; amending s.
39.042, F.S.; providing for use of detention for contempt of court; amending
s. 39.043, F.S.; excepting punishment for contempt from the prohibited
uses of detention; amending s. 39.044, F.S.; clarifying the conditions for
extension of the 21-day period for detention; reenacting ss. 39.01(17) and
39.052(1)(a), F.S., relating to detention hearings and adjudicatory hearings
to incorporate the amendments to ss. 39.042 and 39.044, F.S., in references
thereto; amending s. 39.045, F.S.; providing for release for publication of
a child's photograph under specified circumstances, and reenacting s.
39.058(4)(1)2., F.S., relating to confidentiality of records of serious or
habitual juvenile offenders, to incorporate said amendment in a reference;
amending s. 39.049, F.S.; providing for a parent, custodian, or guardian to
be taken into custody upon failure to obey a summons; creating s. 39.0495,
F.S.; prohibiting an employer from dismissing, threatening with dismissal,
or otherwise harassing a parent, custodian, or guardian for compliance with
a summons; providing for contempt sanctions; amending s. 39.054, F.S.;
providing for community service by a parent, custodian, or guardian of a
juvenile offender; providing for use of promissory note for restitution;
amending s. 232.01, F.S.; increasing the compulsory school attendance age
to 18; reenacting ss. 228.041(29), 230.2316(4)(e)5., and 232.2468(1)(b) and
(c), F.S., relating to dropouts, youth services program attendance, and
habitual truancy rate and dropout rate, to incorporate the amendments to
s. 232.01, F.S, in references thereto; amending s. 827.04, F.S.; imposing a
parental duty to attempt to prevent the child's delinquent acts and
providing penalties for specified omissions which contribute to
delinquency; reenacting ss. 787.04(5) and 901.15(7)(a), F.S., relating to
removal of a minor to prevent child abuse, and arrest for child abuse, to
incorporate the amendments to s. 827.04, F.S., in references thereto;
providing effective dates.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Casey-
HB 39-C-A bill to be entitled An act relating to drivers' licenses;
amending s. 322.21, F.S.; increasing delinquent license fees; providing for
the disposition of the additional funds; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

November 1, 1993

9

JOURNAL OF THE HOUSE OF REPRESENTATIVES

By Representative Burke-
HR 41-C-A resolution honoring Ricardo Joseph for outstanding
achievement in track and field events.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representative Safley-
HB 45-C-A bill to be entitled An act relating to unemployment
compensation; amending s. 443.101, F.S.; providing an additional ground
for disqualification of benefits based upon a positive, confirmed drug test;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Morroni-
HB 47-C-A bill to be entitled An act relating to child abuse; amending
s. 827.071, F.S.; prohibiting the photographing of certain children in a
clandestine fashion under certain circumstances; prohibiting the
possession of certain photographs; providing for prima facie evidence of the
illegal use of certain materials; providing penalties; providing an effective
date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Feren-
HB 49-C-A bill to be entitled An act relating to juvenile justice;
amending s. 39.042, F.S.; authorizing the use of detention for juveniles who
have been held in contempt; amending s. 39.043, F.S.; authorizing
detention care for delinquent juveniles held in contempt and authorizing
secure dependency shelter care for dependent juveniles held in contempt;
amending s. 39.402, F.S., relating to placement in dependency shelters, to
conform; amending s. 39.044, F.S.; revising detention criteria and time
periods; reenacting ss. 39.01(17), 39.038(4), 39.049(5), and 39.052(1)(a),
F.S., relating to definitions, release from custody, process and service, and
hearings, to incorporate the amendments in references thereto; amending
ss. 39.061 and 39.064, F.S.; revising provisions relating to escapes;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Smith-
HB 53-C-A bill to be entitled An act relating to technical clarifications
and statutory conformance to correctional issues contained in the "Safe
Streets Initiative of 1994"; amending s. 921.001, F.S.; deleting a sentencing
selection provision; adding conditional medical release and emergency
control release to the listing of authorized release from incarceration for
persons convicted of crimes committed on or after January 1, 1994;
amending s. 921.0011, F.S.; clarifying that control release includes
emergency control release; amending s. 921.188, F.S.; authorizing local
detention facilities for certain offenders; amending s. 947.1405, F.S.;
providing the conditional release program for inmates convicted of crimes
committed on or after January 1, 1994; designating s. 28 of ch. 93-406, Laws
of Florida, as s. 947.1461, F.S., relating to control release of certain
offenders; providing for future repeal; designating s. 29 of ch. 93-406, Laws
of Florida, as s. 947.1462, F.S., relating to control release critical depletion
transfers; correcting statutory references; providing for future repeal;
designating s. 31 of ch. 93-406, Laws of Florida, as s. 947.1465, F.S., relating
to uniform procedures for control release of habitual felony offenders
pursuant to the "Safe Streets Initiative of 1994"; directing the Joint
Legislative Management Committee to incorporate changes made by this
act into the 1993 edition of the Florida Statutes data base; providing an
effective date.

Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Abrams-
HB 55-C-A bill to be entitled An act relating to criminal justice;
amending s. 790.10, F.S.; increasing the penalties for unlawful exhibition
of a dangerous weapon or firearm; amending s. 790.115, F.S.; increasing the
penalties for unlawful possession or discharge of a weapon or firearm on
school property; amending s. 790.15, F.S.; increasing the penalties for
unlawful discharge of a firearm in public; amending s. 790.19, F.S.;
increasing the penalties for unlawfully shooting or throwing deadly
missiles; amending s. 921.141, F.S.; providing an aggravating circumstance
for capital felony sentencing when the victim is under 12 years old;
amending s. 921.0016, F.S.; providing an aggravating circumstance for
departure sentencing when the defendant was involved in a reckless
shootout which killed an innocent bystander; creating s. 782.041, F.S.;
defining the offense of murder of an innocent bystander, and providing
penalties therefore; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Safley, Mortham, Jones and Morroni-
HB 57-C-A bill to be entitled An act relating to the disclosure of
juvenile records; amending s. 39.037, F.S., relating to taking a child into
custody; requiring notification of district school superintendents of
commission of certain acts; providing an exemption from public records
requirements for information concerning such acts; providing for review
and repeal; providing a statement of public necessity; providing an
effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Stabins-
HR 59-C-A resolution commemorating the 150th anniversary of the
founding of Hernando County.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representatives Safley, Mortham, Jones and Morroni-
HB 63-C-A bill to be entitled An act relating to education; amending
s. 230.23, F.S.; authorizing district school boards to honor an order of
expulsion of a student by another school board; providing procedures;
amending s. 230.335, F.S.; providing requirements relating to notification
of superintendents of schools of certain convictions of students; amending
s. 232.26, F.S.; providing for suspension proceedings for students charged
with committing certain acts; providing for evening alternative education
programs; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Thomas-
HB 65-C-A bill to be entitled An act relating to criminal proceedings
against juveniles; amending ss. 39.047 and 39.052, F.S.; authorizing the
state attorney to file an information for criminal prosecution of a child as
an adult under specified circumstances; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Wallace-
HCR 67-C-A concurrent resolution providing for amendment of Joint
Rule One, Joint Rules of the Senate and House of Representatives, relating
to lobbyist registration and reporting; revising registration requirements;
providing definitions; requiring committee appearance records; revising
the method of registration; revising fees; revising reporting periods;
providing categories, expenditure valuation procedures, and types of
reports; revising exemptions from reporting; revising the method for
requesting opinions regarding registration; providing for informal
opinions; revising open records provisions; providing for records retention

and inspection; providing for implementation.
First reading by publication (Art. III, s. 7, Florida Constitution).

10

November 1, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Referred to the Committee(s) on Rules & Calendar.

By Representative Trammell-
HB 75-C-A bill to be entitled An act relating to the Task Force for
Review of the Criminal Justice and Corrections Systems; adding a county
commissioner member to the task force; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative R. Saunders-
HB 77-C-A bill to be entitled An act relating to further implementing
of the fiscal years 1991-1992 and 1992-1993 General Appropriations Acts;
providing legislative intent; providing that specified appropriations
relating to the Chipola Junior College Ren/rem Natural Sci labs project
shall not revert until a specified date and providing for other uses of the
unexpended balance of such funds; providing that specified appropriations
relating to the Florida Community College at Jacksonville Performing Arts
and Visual Arts Center projects shall not revert until a specified date and
providing for other uses of the unexpended balances of such funds;
providing that specified appropriations relating to the Florida Community
College at Jacksonville PE Outdoor Athl Fac & Gym North project shall
not revert until a specified date; providing that specified appropriations
relating to the Florida Keys Community College Ren spal walls, landscape,
entr, sewer, rest rms, em. power and Rem/ren Bldgs 100, 200 & 300 projects
shall not revert until a specified date and providing for other uses of the
unexpended balances of such funds; providing that specified
appropriations relating to the Indian River Community College Land
acquisition con't complete (s,p,c) project shall not revert until a specified
date; providing that specified appropriations relating to the Pasco-
Hernando Community College Gen Ren/rem comm sys collegewide
project shall not revert until a specified date; providing effective and
expiration dates.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Mortham, Valdes, Hanson, Kerrigan, Thrasher,
Jones, Villalobos, Casey, Albright, Posey and Futch-
HB 81-C-A bill to be entitled An act relating to young offenders;
amending s. 39.001, F.S.; providing legislative purpose; amending s. 39.002,
F.S.; providing legislative findings and intent; repealing s. 39.01(46) and
(59), F.S., relating to definitions; amending ss. 39.021 and 39.0215, F.S.;
deleting references to serious or habitual juvenile offenders and adding
references to serious or habitual 10-13 year old offenders; amending s.
39.022, F.S.; revising and expanding provisions relating to jurisdiction;
amending s. 39.039, F.S.; revising provisions relating to fingerprinting and
photographing; amending s. 39.043, F.S.; deleting certain prohibitions on
the use of detention with respect to a child who is alleged to have
committed a delinquent act or violation of law; amending s. 39.044, F.S.;
providing for the detention of a child who is charged with unlawful
possession of a firearm; revising time periods for detention; expanding
responsibility for payment of fees and costs of care; amending s. 39.045,
F.S.; revising confidentiality provisions; amending s. 39.047, F.S.; deleting
references to serious or habitual juvenile offenders and adding references
to serious or habitual 10-13 year old offenders; revising intake
responsibilities of state attorneys; amending s. 39.049, F.S.; revising and
expanding provisions relating to process and service; expanding personal
jurisdiction and authorizing contempt punishment for evading service or
ignoring summons; creating s. 39.0495, F.S.; prohibiting an employer from
dismissing, threatening with dismissal, or otherwise harassing a parent,
custodian, or guardian for compliance with a summons; providing for
contempt sanctions; amending s. 39.052, F.S.; revising provisions relating
to hearings; expanding waiver provisions and providing criteria; revising
disposition hearing procedure; deleting references to serious or habitual
juvenile offenders and adding references to serious or habitual 10-13 year
old offenders; amending s. 39.054, F.S.; revising provisions relating to
powers of disposition and providing for community service and restitution
by a parent, custodian, or guardian of a juvenile offender; providing for use
of promissory note for restitution; expanding payment and counseling

responsibilities; deleting references to serious or habitual juvenile
offenders and adding references to serious or habitual 10-13 year old

offenders; repealing s. 39.058, F.S., relating to serious or habitual juvenile
offenders; amending s. 39.059, F.S.; deleting references to serious or
habitual juvenile offenders and adding references to serious or habitual 10-
13 year old offenders; expanding payment responsibilities; revising
disposition procedures; amending ss. 39.064 and 39.069, F.S., relating to
detention of furloughed child or escapee and appeals, to conform;
amending s. 48.193, F.S., relating to acts subjecting persons to jurisdiction
of Florida courts, to provide long-arm jurisdiction over nonresident
persons with responsibility for children residing in Florida; amending s.
784.05, F.S.; redefining the term "minor" for purposes of imposing
enhanced penalties for the offense of storing or leaving a loaded firearm
within the reach of a minor; amending s. 790.17, F.S.; prohibiting the sale
or transfer of a firearm to a minor; providing a penalty; amending s.
790.174, F.S.; redefining the term "minor" for purposes of the law that
requires the safe storage of a firearm; amending s. 790.175, F.S.; redefining
the term "minor" for purposes of the requirement that the purchaser of a
firearm be informed that it is unlawful to store or leave a firearm within
access of a minor; amending s. 790.18, F.S.; prohibiting an arms dealer from
selling or transferring a firearm or certain other weapons to a minor;
providing a penalty; amending s. 790.22, F.S.; revising the age at which an
unsupervised minor is prohibited from using certain guns or electric
weapons or devices; prohibiting a minor from possessing a firearm;
providing certain exceptions; prohibiting the parent or guardian of a minor
from knowingly permitting the minor to unlawfully possess a firearm;
providing penalties; providing for the seizure of a firearm that is possessed
or used unlawfully by a minor; providing that such provisions are
supplemental to certain other criminal sanctions; providing immediate
authorization for correctional facilities for youthful offenders; providing an
effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representatives Albright, Trammell, Mortham, Boyd, Mackey,
Hanson, Smith, Casey, Arnall, Thrasher and Bitner-
HB 83-C-A bill to be entitled An act relating to juvenile offender
information; amending s. 39.039, F.S.; revising provisions relating to
fingerprinting and photographing; requiring retention and transmittal of
certain records; deleting confidentiality requirements; amending s. 39.045,
F.S.; revising provisions relating to records and information; requiring
retention and transmittal of certain records and information; deleting
confidentiality requirements; providing for admissibility of court records
in juvenile proceedings to the same extent as admissible in proceedings
involving adult offenders; deleting restrictions on public inspection;
extending the time period required for retention of records; requiring
release for publication in certain circumstances, and requiring that such
publication include the child's photograph and the names and addresses
of the child's parents or legal guardians, as well as the name of any agency
responsible for the child at the time of commission of the offense;
amending ss. 39.058 and 39.0582, F.S., relating to serious or habitual
juvenile offenders and intensive residential treatment programs for 10-13
year old offenders, to conform; making the assessment and treatment
records of such offenders part of the child's law enforcement record;
amending s. 39.0585, F.S.; revising provisions relating to juvenile offender
information systems; requiring each county to maintain a central
identification file on juvenile offenders and at-risk juvenile offenders;
requiring notification of the sheriff when a juvenile offender moves or is
relocated; deleting certain criteria and confidentiality requirements;
requiring interagency cooperation; amending ss. 39.052, 39.053, 39.059, and
230.335, F.S., relating to hearings, adjudication, community control or
commitment, and notification of school superintendents, to conform;
revising civil consequences of adjudication; revising and expanding
notification requirements to schools; providing an appropriation; providing
an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Villalobos-
HB 87-C-A bill to be entitled An act relating to tax on sales, use, and

other transactions; amending s. 212.02, F.S.; revising the definition of
"sales price"; amending s. 212.05, F.S.; revising provisions relating to

November 1, 1993

11

JOURNAL OF THE HOUSE OF REPRESENTATIVES

imposition of said tax with respect to lessees, licensees, and rentees;
providing intent; revising the rate of the tax imposed on charges for the use
of coin-operated amusement machines and providing for calculation
thereof; specifying responsibility for remitting the tax on sales generated
through use of such machines and on the lease or purchase of such
machines; requiring operators of such machines to affix an identifying
device to each machine; providing an annual fee for such devices;
authorizing issuance of identifying devices by the tax collector; revising
provisions relating to payments to informants; providing a penalty;
requiring the Department of Revenue to send information pertaining to
identifying devices to property appraisers; amending s. 212.12, F.S.;
requiring separate statements relating to such sales on sales tax returns or
on a form prescribed by the department; providing for application of
penalties; amending s. 212.20, F.S.; providing for distribution of identifying
device fees; amending s. 509.032, F.S., and creating s. 561.1105, F.S.;
requiring the Division of Hotels and Restaurants and the Division of
Alcoholic Beverages and Tobacco, in performing inspection duties, to
inspect coin-operated amusement machines for compliance with s.
212.05(1)(j), F.S.; requiring that violations be reported to the Department
of Revenue; providing for emergency rules; specifying administrative
provisions applicable to other implementing rules; exempting the
department from provisions regulating the procurement of property and
services for a specified period; providing effective dates.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Casey-
HR 93-C-A resolution honoring Linda B. Bass, R.N., Director, The
Legislative Clinic, The Florida Legislature, upon her retirement.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representative Villalobos-
HB 95-C-A bill to be entitled An act relating to community residential
homes; amending s. 419.001, F.S.; providing that certain community

residential homes shall be required to meet notification provisions for
which they are currently exempt; providing for a public hearing prior to the
siting of a community residential home; providing that a local government
may deny a permit for siting under certain circumstances; providing a
definition; providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Benson-
HB 97-C-A bill to be entitled An act relating to corrections; amending
s. 20.315, F.S.; creating the Youth Corrections Authority within the
Department of Corrections; providing for an executive director of the
authority; providing for the budget of the authority to be independent of
the department; amending s. 946.009, F.S., relating to correctional work
programs, and reenacting s. 947.16(1)(e), F.S., relating to parole eligibility,
to conform; creating s. 958.022, F.S.; providing legislative policy with
respect to serious and chronic young offenders; amending s. 958.03, F.S.;
providing definitions; amending s. 958.04, F.S.; providing for judicial
disposition of serious and chronic young offenders; amending s. 951.231,
F.S., relating to county residential probation programs, and s. 958.11, F.S.,
relating to youthful offender institutions and programs, to conform;
creating s. 958.16, F.S.; limiting eligibility of a serious and chronic young
offender or a youthful offender for gain-time, provisional release, or control
release; authorizing the court to recommend a release from incarceration
for such offenders upon a recommendation by the department; amending
s. 958.19, F.S.; redesignating the Youth Corrections Program as the Serious
and Chronic Young Offender Program; providing an appropriation;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

Recessed
Pursuant to the motion previously agreed to, the House recessed at
2:35 p.m., to reconvene at 1:30 p.m., Tuesday, November 2 or upon call of
the Speaker.

November 1, 1993

12

The Journal OFTHE

House of Representatives

THIRD SPECIAL SESSION-"C" of 1992-1994

The House was called to order by the Speaker at 2:30 p.m.

Prayer
The following prayer was offered by the Reverend Hal Marchman of
Astor, upon invitation of Representative Bo Johnson:
Almighty God, we thank You for the promise that You work all things
together for good, for those who love the Lord, for those called according
to His purpose. Help us to rely on this promise and let Your spirit work
in each one of us. Shalom and Amen.
The following Members were recorded present:

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy

Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent

Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts
Rojas

Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Excused: Reps. Bush, Garcia, Goode, Graber and Simon.
A quorum was present.

Pledge
The Members, led by Nicholas Thomas, son of the Honorable David L.
Thomas, pledged allegiance to the Flag.

House Physician
The Speaker presented the Honorable David L. Thomas of Sarasota,
who served as Doctor of the Day.

The Journal
The Journal of November 1 was corrected and approved as corrected.

Waiver of Rule 8.15 for Special Order Calendar
On motion by Rep. Webster, Rule 8.15 was waived and the Chair of the
Committee on Rules & Calendar was given permission to set the Special
Order Calendar for November 2, 1993.
Special and Continuing Order Calendar

The Honorable Bo Johnson
Speaker, House of Representatives

November 2, 1993

Dear Sir:
In accordance with the vote of the House, the following report is
submitted as the Special and Continuing Order Calendar beginning
Tuesday, November 2, 1993.
I. Consideration of the following bills:
HM 51-C-Natural Disasters
CS/HBs 33-C & 43-C-Property & Casualty Insurers
(Pending committee action)
CS/HB 31-C-Fla. Hurricane Catastrophe Fund
(Pending committee action)
HB 69-C-Public Records & Meetings/Ins. Dept.
(Pending committee action)
HB 71-C-Annual Reports/Insurance Dept.
(Pending committee action)
HB 73-C-Public Records/Bd. of Administration
(Pending committee action)
CS/HBs 85-C, 99-C, 15-C, 13-C & 23-C-Workers' Compensation
(Pending committee action)
HB 89-C-Trust Funds
(Pending committee action)
CS/HB 91-C-Weapons & Firearms
(Pending committee action)
HCR 67-C-Lobbyist Registration & Reporting
(Pending committee action)
Respectfully submitted,
Peter R. Wallace, Chairman
Committee on Rules & Calendar
On motion by Rep. Wallace, the above report was adopted.

Special and Continuing Orders
Consideration of HM 51-C was temporarily deferred.

13

Number 2

Tuesday, November 2, 1993

14 JOURNAL OF THE HOUSE

By the Committee on Insurance; Representatives Cosgrove, Geller,
Morroni, Schultz, Bainter, Rayson, Feren, De Grandy, Gay, Charles,
Arnold, Roberts and Armesto-Garcia-
CS/HBs 33-C & 43-C-A bill to be entitled An act relating to
insurance; amending s. 624.307, F.S.; requiring the Department of
Insurance to implement a program to encourage the entry of additional
insurers into the Florida market; creating s. 624.3101, F.S.; prohibiting
false or misleading financial statements; providing penalties; creating s.
624.3102, F.S.; providing immunity from civil liability for persons who
provide the department with certain information about insurers; amending
s. 624.316, F.S.; removing limitation of examination authority to domestic
insurers; limiting acceptability of examination reports of foreign insurers;
providing for conduct of examinations by independent examiners;
specifying frequency of examinations of insurers; providing for adoption of
rules; amending s. 624.407, F.S.; increasing the minimum surplus as to
policyholders required for issuance of a certificate of authority as a
property and casualty insurer; amending s. 624.408, F.S.; increasing the
minimum surplus as to policyholders required for maintenance of a
certificate of authority as a property and casualty insurer; amending s.
624.424, F.S.; requiring an insurer's annual statement to include a
statement of opinion on reserves; limiting waivers of accounting
requirements; creating s. 624.4243, F.S.; providing for computation and
reporting of premium growth; specifying powers of the department;
amending s. 624.610, F.S.; providing criteria for classification as an
approved reinsurer; requiring a ceding insurer to conduct a due diligence
inquiry with respect to an assuming reinsurer; revising criteria for a letter
of credit used with respect to credit on financial statements for certain
reinsurance; authorizing rules with respect to the letter of credit;
authorizing use by the Department of Insurance of reinsurance consultants
under certain conditions; providing procedures and requirements with
respect thereto and regarding the reinsurance evaluation; providing for
payment for evaluation costs; amending s. 625.305, F.S.; removing
authority of the department to waive certain investment restrictions;
amending s. 626.7491, F.S.; specifying when an insurer is presumed to be
producer-controlled; specifying application of certain provisions; providing
exceptions; specifying producers from which insurers may accept business;
amending s. 626.918, F.S.; increasing minimum surplus requirements for
surplus lines insurers; creating s. 627.0629, F.S.; requiring residential
property insurance rate filings to include rate differentials for properties
on which certain fixtures have been installed; authorizing such rate filings
to include factors reflecting the quality of particular building codes and
enforcement thereof; providing for adoption and use of a standard
hurricane loss exposure model; providing criteria for territories used in
property insurance rate filings; amending s. 627.351, F.S.; revising
provisions with respect to deficit assessments in the windstorm insurance
risk apportionment plan; authorizing issuance of bonds on behalf of the
plan; providing circumstances under which a classification is immediately
eligible for coverage in the Florida Property and Casualty Joint
Underwriting Association; providing criteria for rates; activating coverage
with respect to commercial coverages of residences; providing for
legislative review; providing for termination; revising provisions with
respect to deficit assessments; authorizing issuance of bonds on behalf of
the association; providing legislative intent with respect to the Residential
Property and Casualty Joint Underwriting Association; providing criteria
for rates; requiring rate filings; revising provisions relating to deficit
assessments; authorizing issuance of bonds on behalf of the association;
providing for dissolution of the association; amending s. 627.4133, F.S.;
specifying period for notice of nonrenewal, renewal premium, and
cancellation; amending s. 627.701, F.S.; specifying powers of the
department with respect to deductible provisions in certain policies;
creating s. 627.7011, F.S.; requiring certain provisions to be offered with
respect to homeowner's policies; providing for rejection or selection of
alternative coverages; requiring notice; creating s. 627.7012, F.S.;
authorizing the department to establish pools of qualified adjusters for use
in emergencies; creating s. 627.7013, F.S.; providing findings and purpose;
limiting cancellation or nonrenewal of policies that were subject to the

moratorium contained in ch. 93-401, Laws of Florida; providing for future
repeal; requiring insurers to submit exposure reduction plans to the
department for approval; creating s. 627.7014, F.S.; requiring insurers to
implement plans for the avoidance of certain concentrations of property
insurance exposures; providing for reports; providing circumstances for

I .

E OF REPRESENTATIVES November 2, 1993

submission of plans to the department; providing criteria for approval of
order to resubmit; creating s. 627.7015, F.S.; requiring the department to
adopt a mediation program for first-party claims under personal lines
residential policies; providing purpose and scope; requiring notice;
providing for payment of costs; requiring adoption of rules; providing for
treatment as negotiations in anticipation of litigation; requiring
negotiation in good faith; requiring participants to have the authority to
settle; providing immunity for mediators; specifying effects of mediation;
specifying time within which insured may rescind settlement; authorizing
the department to delegate certain duties; amending s. 628.801, F.S.;
specifying content and applicability of rules relating to insurance holding
companies; amending s. 631.52, F.S.; specifying applicability of the Florida
Insurance Guaranty Association Act; amending s. 631.54, F.S.; including
certain surplus lines insurers as member insurers; amending s. 631.55, F.S.;
requiring a separate account for surplus lines insurers; requiring the
Department of Insurance to conduct a study of the classification of
condominium association coverage; requiring reports; amending ss. 625.330
and 631.011, F.S.; correcting cross references; providing effective dates.
-was read the first time by title. On motion by Rep. Cosgrove, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title.
Representatives) Cosgrove offered the following amendment:
Amendment 1-On page 28, lines 7-9, strike all of said lines and insert:
may include rate factors that reflect the quality of enforcement of the
state minimum building code adopted by a particular jurisdiction,
however, such a rate filing must
Rep. Cosgrove moved the adoption of the amendment, which was
adopted.
Representatives) Cosgrove offered the following amendment:
Amendment 2-On page 31, line 27, and on page 44, line 26, and on
page 55, line 10, after the period, insert: If any of the bonds remain unsold
60 days after issuance, the department shall require all insurers subject
to assessment to purchase the bonds, which shall be treated as admitted
assets; each insurer shall be required to purchase that percentage of the
unsold portion of the bond issue that equals the insurer's relative share
of assessment liability under this subsection.
and the title is amended as follows:
On page 3, lines 8, 18, and 25, after the semicolon, insert: requiring
insurers to purchase bonds in specified circumstances;
Rep. Cosgrove moved the adoption of the amendment, which was
adopted.
Representatives) Cosgrove and Klein offered the following amendment:
Amendment 3-On page 38, lines 4 and 6, after "buildings", insert:
common elements of homeowners associations
Rep. Cosgrove moved the adoption of the amendment, which was
adopted.
Representatives) Cosgrove offered the following amendment:
Amendment 4-On page 66, line 3, before the period, insert: and may
not, with respect to any county, cancel or nonrenew more than 10 percent
of its homeowner's policies, 10 percent of its mobile home owner's policies,
or 10 percent of its personal lines residential policies of all types and
classes in the county for the purpose of reducing the insurer's exposure
to hurricane claims
Rep. Cosgrove moved the adoption of the amendment, which was
adopted.
Under Rule 8.19, the bill was referred to the Engrossing Clerk.

By the Committee on Insurance; Representatives Cosgrove, Morroni,
Schultz, Bainter, Geller, Logan, Ascherl, Roberts, Gay, Rayson, Armesto-

Garcia, Ogles, Feren, Arnold, Charles, Dennis, Feeney and Bloom-
CS/HB 31-C-A bill to be entitled An act relating to the Florida
Hurricane Catastrophe Fund; creating s. 215.555, F.S.; providing findings
and purpose; providing definitions; creating the Florida Hurricane
Catastrophe Fund as a trust fund under the State Board of Administration;

JOURNAL OF THE HOUSE OF REPRESENTATIVES

specifying uses of moneys in the fund; specifying applicability of other
laws; requiring the fund and specified insurers to enter into reimbursement
contracts; specifying obligations of the fund under reimbursement
contracts; requiring reports; providing for loans; requiring payment of
reimbursement premium; providing for calculation of reimbursement
premium; specifying accounting and regulatory treatment of
reimbursement premium; requiring advance payment; providing
circumstances for issuance of revenue bonds on behalf of the fund;
specifying pledged revenues; authorizing units of local government to issue
such bonds; requiring validation; authorizing emergency assessments;
authorizing the fund to procure reinsurance; authorizing borrowing by the
fund; authorizing the fund to expend certain moneys to support programs
to mitigate hurricane losses; providing for appointment of an advisory
council; providing for per diem and travel expenses; specifying
applicability of s. 19, Art. III, State Constitution, to the fund; providing
that violations constitute violations of the Insurance Code; providing for
reversion of fund assets to the General Revenue Fund upon termination;
providing for recommendations with respect to federal or multistate
catastrophic funds; providing an exemption from the deduction required
by s. 215.20(1), F.S.; amending s. 624.5091, F.S.; providing that retaliatory
tax does not apply to premiums and assessments paid to the Florida
Hurricane Catastrophe Fund; providing an effective date.
-was read the first time by title. On motion by Rep. Cosgrove, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title.
The Committee on Appropriations offered the following amendment:
Amendment 1-On page 10, lines 25-30, strike all of said lines and
insert, a new Section (c):
(c) If no covered events occurred in the prior calendar year, up to two
percent of the prior year's premium collected by the fund shall be
available for the purpose of making legislative appropriations for grants
to local governments, state agencies, and nonprofit charitable
organizations to support programs to mitigate potential hurricane loss.
Appropriations made pursuant to this subsection shall be administered
by the Department of Community Affairs.
Rep. Cosgrove moved the adoption of the amendment.
Representatives) Sanderson offered the following amendment to the
amendment:
Amendment 1 to Amendment 1-On page 1, line 19, strike all and
insert: non-recurring expenditures for projects that directly protect local
infrastructure from potential damage from a hurricane. Appropriations
Rep. Sanderson moved the adoption of the amendment to the
amendment, which was adopted.
The question recurred on the adoption of Amendment 1, as amended,
which was adopted.
Representatives) Cosgrove offered the following amendment:
Amendment 2-On page 5, line 31, though page 6, line 1, strike "gross
direct" and insert: net
Rep. Cosgrove moved the adoption of the amendment, which was
adopted.
On motion by Rep. Cosgrove, the rules were waived by the required two-
thirds vote and CS/HB 31-C, as amended, was read the third time by title.
On passage, the vote was:
Yeas-113

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom

Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine

Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy
Dennis
Edwards
Eggelletion
Feeney

Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris

Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Nays-1
Sublette

Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples

So the bill passed, as amended,
Senate after engrossment.

Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts
Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith

Stabins
Stafford
Starks
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

and was immediately certified to the

CS/HBs 33-C & 43-C-A bill to be entitled An act relating to
insurance; amending s. 624.307, F.S.; requiring the Department of
Insurance to implement a program to encourage the entry of additional
insurers into the Florida market; creating s. 624.3101, F.S.; prohibiting
false or misleading financial statements; providing penalties; creating s.
624.3102, F.S.; providing immunity from civil liability for persons who
provide the department with certain information about insurers; amending
s. 624.316, F.S.; removing limitation of examination authority to domestic
insurers; limiting acceptability of examination reports of foreign insurers;
providing for conduct of examinations by independent examiners;
specifying frequency of examinations of insurers; providing for adoption of
rules; amending s. 624.407, F.S.; increasing the minimum surplus as to
policyholders required for issuance of a certificate of authority as a
property and casualty insurer; amending s. 624.408, F.S.; increasing the
minimum surplus as to policyholders required for maintenance of a
certificate of authority as a property and casualty insurer; amending s.
624.424, F.S.; requiring an insurer's annual statement to include a
statement of opinion on reserves; limiting waivers of accounting
requirements; creating s. 624.4243, F.S.; providing for computation and
reporting of premium growth; specifying powers of the department;
amending s. 624.610, F.S.; providing criteria for classification as an
approved reinsurer; requiring a ceding insurer to conduct a due diligence
inquiry with respect to an assuming reinsurer; revising criteria for a letter
of credit used with respect to credit on financial statements for certain
reinsurance; authorizing rules with respect to the letter of credit;
authorizing use by the Department of Insurance of reinsurance consultants
under certain conditions; providing procedures and requirements with
respect thereto and regarding the reinsurance evaluation; providing for
payment for evaluation costs; amending s. 625.305, F.S.; removing
authority of the department to waive certain investment restrictions;
amending s. 626.7491, F.S.; specifying when an insurer is presumed to be
producer-controlled; specifying application of certain provisions; providing
exceptions; specifying producers from which insurers may accept business;
amending s. 626.918, F.S.; increasing minimum surplus requirements for
surplus lines insurers; creating s. 627.0629, F.S.; requiring residential
property insurance rate filings to include rate differentials for properties
on which certain fixtures have been installed; authorizing such rate filings
to include factors reflecting the quality of particular building codes and
enforcement thereof; providing for adoption and use of a standard
hurricane loss exposure model; providing criteria for territories used in
property insurance rate filings; amending s. 627.351, F.S.; revising
provisions with respect to deficit assessments in the windstorm insurance
risk apportionment plan; authorizing issuance of bonds on behalf of the
plan; providing circumstances under which a classification is immediately
eligible for coverage in the Florida Property and Casualty Joint
Underwriting Association; providing criteria for rates; activating coverage
with respect to commercial coverages of residences; providing for
legislative review; providing for termination; revising provisions with

November 2, 1993

15

JOURNAL OF THE HOUSE OF REPRESENTATIVES

respect to deficit assessments; authorizing issuance of bonds on behalf of
the association; providing legislative intent with respect to the Residential
Property and Casualty Joint Underwriting Association; providing criteria
for rates; requiring rate filings; revising provisions relating to deficit
assessments; authorizing issuance of bonds on behalf of the association;
providing for dissolution of the association; amending s. 627.4133, F.S.;
specifying period for notice of nonrenewal, renewal premium, and
cancellation; amending s. 627.701, F.S.; specifying powers of the
department with respect to deductible provisions in certain policies;
creating s. 627.7011, F.S.; requiring certain provisions to be offered with
respect to homeowner's policies; providing for rejection or selection of
alternative coverages; requiring notice; creating s. 627.7012, F.S.;
authorizing the department to establish pools of qualified adjusters for use
in emergencies; creating s. 627.7013, F.S.; providing findings and purpose;
limiting cancellation or nonrenewal of policies that were subject to the
moratorium contained in ch. 93-401, Laws of Florida; providing for future
repeal; requiring insurers to submit exposure reduction plans to the
department for approval; creating s. 627.7014, F.S.; requiring insurers to
implement plans for the avoidance of certain concentrations of property
insurance exposures; providing for reports; providing circumstances for
submission of plans to the department; providing criteria for approval of
order to resubmit; creating s. 627.7015, F.S.; requiring the department to
adopt a mediation program for first-party claims under personal lines
residential policies; providing purpose and scope; requiring notice;
providing for payment of costs; requiring adoption of rules; providing for
treatment as negotiations in anticipation of litigation; requiring
negotiation in good faith; requiring participants to have the authority to
settle; providing immunity for mediators; specifying effects of mediation;
specifying time within which insured may rescind settlement; authorizing
the department to delegate certain duties; amending s. 628.801, F.S.;
specifying content and applicability of rules relating to insurance holding
companies; amending s. 631.52, F.S.; specifying applicability of the Florida
Insurance Guaranty Association Act; amending s. 631.54, F.S.; including
certain surplus lines insurers as member insurers; amending s. 631.55, F.S.;
requiring a separate account for surplus lines insurers; requiring the
Department of Insurance to conduct a study of the classification of
condominium association coverage; requiring reports; amending ss. 625.330
and 631.011, F.S.; correcting cross references; providing effective dates.
-was taken up, having been read the second time, and amended, earlier
today.
On motion by Rep. Cosgrove, the rules were waived by the required two-
thirds vote and CS/HBs 33-C & 43-C, as amended, was read the third time
by title.
The Speaker nullified a roll call due to a machine malfunction.
On passage, the vote was:
Yeas-114

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove

Couch
Crady
Crist
Davis
Dawson
De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins

Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure

McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morrorii
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts
Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.

Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith

Stabins
Stafford
Starks
Sublette
Tedder
Thomas

Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos

Wallace
Warner
Webster
Wise

Nays-None
So the bill passed, as amended, and was immediately certified to the
Senate after engrossment.

Motion
On motion by Reps. Wallace and Webster, the rules were waived and
HM 61-C was added to today's Special and Continuing Order Calendar.

HM 51-C-A memorial to the Congress of the United States urging
adoption of legislation concerning natural disasters and related relief
efforts and urging leadership by the Florida delegation.
WHEREAS, the lives and property of all citizens of Florida are affected
by natural disasters such as hurricanes, and
WHEREAS, the aftermath of Hurricane Andrew has made it clear that
the United States needs to improve natural disaster relief programs and
emergency response programs and that local governments need to improve
hazard mitigation and building code enforcement efforts, and
WHEREAS, the size of the insured loss from Hurricane Andrew has
called attention to the need for better assessment by insurance companies
of concentration of risk, the need for insurance companies to obtain
additional catastrophe reinsurance, and the need of consumers to have
available to them affordable property insurance to include protection
against hurricane losses, and
WHEREAS, legislation will be introduced in the current 103rd Session
of the United States Congress with the backing of the Natural Disaster
Coalition that will address five major objectives including:
1. To promote better construction techniques, so that buildings in
areas at risk can withstand the effects of high winds, earth tremors, and
floods, and
2. To anticipate disasters before they occur, by encouraging better
planning and hazard mitigation at the state and local levels, and
3. To simplify homeowners insurance to include standard protection
against natural hazards on a multi-peril basis, and
4. To create an industry-financed excess reinsurance program against
catastrophic hurricanes and earthquakes in order to prevent or sharply
reduce market dislocations and a future insurance availability crisis, and
5. To provide a measure of funding for these activities, financed by the
private sector, NOW, THEREFORE,
Be It Resolved by the Legislature of the State of Florida:
That the Congress of the United States is requested to adopt legislation
that will address construction techniques, planning and hazard mitigation,
private sector funding, homeowners insurance, and reinsurance with
regard to natural disasters and related relief efforts as expressed herein.
BE IT FURTHER RESOLVED that the Florida delegation to the
United States Congress take a leadership role in promoting the adoption
of such legislation.
BE IT FURTHER RESOLVED that copies of this memorial be
dispatched to the President of the United States, to the President of the
United States Senate, to the Speaker of the United States House of
Representatives, and to each member of the Florida delegation to the
United States Congress.
-was read the second time by title. On motion by Rep. Cosgrove, the
resolution was adopted.

HM 61-C-A memorial to the Congress of the United States urging
creation of a federal catastrophe fund and federal tax deductions to
insurance companies for use after catastrophic events.

16

November 2, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

WHEREAS, property insurance catastrophe reserves have been severely
depleted because of claims arising from hurricanes, earthquakes, and fires,
and
WHEREAS, following the severe natural disasters of the last several
years, desired levels of catastrophe reserves have decreased dramatically,
and
WHEREAS, the insurance industry's solvency as a whole on a
nationwide level would be at risk or imperiled if the industry were
impacted by several consecutive catastrophic events nationwide, and
WHEREAS, a nationwide, rather than a state-by-state, catastrophic
disaster pool would be more cost-effective and would streamline
administrative costs, and
WHEREAS, in the event that future catastrophic natural disasters
overwhelm the insurance industry's capacity to adequately indemnify its
insured, only rapid government response will prevent serious property
losses and human misery, and
WHEREAS, government can respond in an efficient and expeditious
manner only if the necessary resources are readily available, and
WHEREAS, recent experiences have demonstrated that catastrophic
losses due to natural disasters are a nationwide and not merely a statewide
problem, and
WHEREAS, contingency reserves for insured events yet to occur are
nondeductible under the current federal tax system, and
WHEREAS, federal taxes take away from the resources that are
available to pay losses when they occur, and
WHEREAS, insufficient catastrophe reserves can cause an insurer to
have inadequate funds to pay the property catastrophe losses that it
insures, and
WHEREAS, federal tax policy creates a disincentive in the United
States for private insurers to write catastrophe insurance coverage, NOW,
THEREFORE,
Be It Resolved by the Legislature of the State of Florida:
That the Congress of the United States is requested to adopt legislation
that will create a catastrophe fund and amend the federal tax laws to allow
insurance companies to deduct reserves for catastrophic events from
federal income tax that is due the Federal Government and to provide that
the tax exempt funds are set aside and only used in the event of a
catastrophe.
BE IT FURTHER RESOLVED that the Florida delegation to the
United States Congress take a leadership role to support such legislation.
BE IT FURTHER RESOLVED that copies of this memorial be
dispatched to the President of the United States, to the President of the
United States Senate, to the Speaker of the United States House of
Representatives, and to each member of the Florida delegation to the
United States Congress.
-was read the second time by title. On motion by Rep. De Grandy, the
resolution was adopted.

HB 71-C-A bill to be entitled An act relating to public records;
exempting certain plans and annual reports submitted by insurers to the
Department of Insurance from certain public records requirements;
providing for future review and repeal; providing a finding of public
necessity; providing a contingent effective date.
-was read the second time by title.
The Committee on Governmental Operations offered the following
amendment:
Amendment 1-On page 1, line 14, insert after "legislation,": and
department evaluations of such plans and reports,
Rep. Cosgrove moved the adoption of the amendment, which was
adopted.

On motion by Rep. Cosgrove, the rules were waived by the required two-
thirds vote and HB 71-C, as amended, was read the third time by title. On
passage, the vote was:

Yeas-111
The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy

Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein

Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Starks
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Nays-1
Sublette
Votes after roll call:
Yeas-Charles
So the bill passed, as amended, and was immediately certified to the
Senate after engrossment.

THE SPEAKER PRO TEMPORE IN THE CHAIR

HB 73-C-A bill to be entitled An act relating to public records;
exempting certain reports of insured values under certain insurance
policies submitted to the State Board of Administration from public
records requirements; providing for future review and repeal; providing a
finding of public necessity; providing a contingent effective date.
-was read the second time by title. On motion by Rep. Cosgrove, the
rules were waived by the required two-thirds vote and the bill was read the
third time by title. On passage, the vote was:
Yeas-111

The Chair
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove

Couch
Crady
Crist
Davis
Dawson
De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris

Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey

Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

November 2, 1993

17

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.

Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford

Starks
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch

Valdes
Villalobos
Wallace
Warner
Webster
Wise

Nays-1
Sublette
So the bill passed and was immediately certified to the Senate.

Recessed
On motion by Rep. Wallace, the House stood in informal recess at
3:40 p.m., to reconvene at 4:15 p.m. today or upon the call of the Speaker.

Reconvened
The House was called to order by the Speaker at 4:36 p.m. A quorum was
present.

By the Committee on Commerce; Representatives Lippman, Mackey,
Jones, Warner, Benson, Hawkes, Miller, King and Bloom-
CS/HBs 85-C, 99-C, 15-C, 13-C & 23-C-A bill to be entitled An
act relating to workers' compensation; amending s. 27.34, F.S.; authorizing
the Insurance Commissioner to contract with state attorneys to prosecute
certain criminal violations and to contribute funds to pay salaries and
expenses of certain assistant state attorneys for certain purposes; creating
s. 287.044, F.S.; providing for compliance with chapter 440, F.S.; providing
definitions; requiring a sworn statement prior to bidding on a contract
under certain circumstances; amending s. 287.058, F.S.; requiring certain
contract documents to contain certain payment security provisions;
amending s. 440.015, F.S.; providing legislative intent; amending s. 440.02,
F.S.; revising certain definitions; amending s; 440.05, F.S.; providing for
election of exemption; providing for revocation of an election; amending s.
440.055, F.S.; requiring notices of noncoverage be posted at worksites;
amending s. 440.075, F.S.; providing for effect of election of exemption;
amending s. 440.09, F.S.; requiring an employer to pay compensation or
furnish certain benefits under certain circumstances; providing criteria;
revising coverage provisions related to injuries due to alcohol or drug abuse;
denying an employee entitlement to certain benefits under certain
circumstances; amending s. 440.092, F.S.; clarifying application of certain
benefits provisions to traveling employees under certain circumstances;
amending s. 440.10, F.S.; deleting a penalty; authorizing the Division of
Workers' Compensation of the Department of Labor and Employment
Security to assess a penalty against certain employers; amending s. 440.101,
F.S.; revising legislative intent with regard to drug-free workplaces;
amending s. 440.102, F.S.; revising provisions related to the drug-free
workplace program; revising definitions; providing certain employers are
ineligible for certain discounts; providing additional requirements for
followup testing; providing for payment of medical treatments; providing
a penalty; providing that certain screening and testing need not comply
with certain rules; providing additional employer protection provisions;
revising provisions relating to confidentiality of drug test results; adding
provisions relating to public employees in safety-sensitive or special-risk
positions; prohibiting an employer from refusing to deny certain benefits;
creating s. 440.103, F.S.; requiring proof of secured compensation as a
condition to receiving a building permit; creating s. 440.104, F.S.; providing
for civil actions for competitive bidders; creating s. 440.105, F.S.; requiring
reports of suspected fraudulent acts to the Bureau of Workers'
Compensation Fraud; limiting liability; prohibiting certain activities;
providing penalties; creating s. 440.106, F.S.; providing for civil remedies,
stop-work orders, and liens under certain circumstances; authorizing the
division to bring certain actions; creating s. 440.107, F.S.; providing powers
of the division to enforce certain employer compliance; authorizing the
division to bring certain actions in circuit court; providing penalties;
providing that certain judgments constitute liens under certain
circumstances; providing for application of the Administrative Procedures
Act; providing for disposition of penalties; authorizing law enforcement
agencies to assist the division; amending s. 440.11, F.S.; expanding
provisions with respect to exclusiveness of liability; amending s. 440.13,

F.S.; providing definitions; requiring employers to provide certain medical
services and supplies; providing for eligibility of providers; requiring notice
of treatment to carriers; providing for independent medical examinations;
providing for utilization review; providing for resolving utilization and
reimbursement disputes; providing for certification of expert medical
advisors; providing for witness fees; providing for audits by the division;
providing for creation of a three-member panel; providing duties;
providing for managed care; providing for a community health purchasing
alliance; providing for removal of physicians from lists of those authorized
to render medical care under certain conditions; providing for payment of
medical fees and employee copayment; providing practice parameters for
outpatient services; amending s. 440.135, F.S.; providing legislative intent
regarding certain pilot programs; providing for additional pilot programs;
specifying criteria; amending s. 440.15, F.S.; revising criteria relating to
total and permanent disability; requiring certain reports to the division of
all earned income of certain temporarily totally disabled persons; requiring
wage-loss and job-search information of temporarily partially disabled
persons; providing for repayment of certain benefits under certain
circumstances; providing for coordination of benefits; amending s. 440.151,
F.S.; specifying application tobenefits payable rather than compensation;
amending s. 440.16, F.S.; revising certain provisions relating to
compensation for death; amending s. 440.185, F.S.; revising certain
provisions relating to notice of injury or death; deleting a requirement that
the division forward certain files to a judge of compensation claims;
amending s. 440.19, F.S.; providing additional claim filing requirements;
creating s. 440.191, F.S.; creating the Employment Assistance and
Ombudsman Office within the Division of Workers' Compensation;
providing duties of the office; amending s. 440.20, F.S.; authorizing an
employer to pay a deductible amount under certain circumstances;
prohibiting reimbursement of such deductible; requiring rate bases to
include such deductible; requiring the division to monitor the timely
payment of compensation benefits; providing fines; amending s. 440.21,
F.S.; deleting a penalty; creating s. 440.211, F.S.; providing for
authorization of collective bargaining agreements; providing criteria;
amending s. 440.25, F.S.; revising provisions relating to certain hearings
held by a judge of compensation claims; revising procedures relating to
such hearings; authorizing the division to adopt rules; amending s. 440.29,
F.S.; requiring receipt of certain medical reports into evidence; amending
s. 440.32, F.S.; expanding provisions with respect to assessment of costs in
proceedings brought without reasonable grounds; providing an
administrative penalty; amending s. 440.34, F.S.; providing for award of
extraordinary fees under certain circumstances; revising criteria for
awarding certain fees; deleting a penalty; amending s. 440.38, F.S.; revising
provisions relating to securing the payment of compensation by employers;
requiring the division to adopt rules; permitting employers to obtain
coverage by use of a 24-hour health insurance policy; specifying certain
coverages; deleting a penalty; amending s. 440.381, F.S.; requiring updating
of certain insurance applications; amending s. 440.385, F.S.; revising
provisions relating to the Florida Self-Insurers Guaranty Association;
amending s. 440.386, F.S.; clarifying provisions with respect to individual
self-insurers' insolvency; amending s. 440.39, F.S.; prohibiting a company
from requiring a waiver of certain provisions; creating s. 440.4415, F.S.;
creating the Workers' Compensation Oversight Board; providing for
membership; duties and responsibilities; requiring the board to review the
workers' compensation system and to submit a report to the Governor and
the Legislature; specifying contents of the report; amending s. 440.442,
F.S.; revising and expanding provisions with respect to the Code of Judicial
Conduct; providing that commissioners appointed to the Workers'
Compensation Appeals Commission shall observe and abide by the Code
of Judicial Conduct; amending s. 440.45, F.S.; revising provisions relating
to membership of the statewide nominating commission; requiring reports;
amending s. 440.48, F.S.; requiring the department annually report to the
Governor and the Legislature on administration of chapter 440, F.S.;
requiring the division to complete a quarterly analysis of injuries resulting
in claims; requiring the division to submit an annual closed claim report
to the Governor and the Legislature; requiring the division to engage in
certain continuous studies; amending s. 440.49, F.S.; revising provisions
relating to reemployment of injured workers and rehabilitation; providing
definitions; providing intent; providing for reemployment status reviews
and reports; providing for reemployment assessments; providing for

medical care coordination and reemployment services; providing for
training and education; specifying provider qualifications; requiring the

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November 2, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

division to monitor selection of providers and provision of services; revising
provisions related to limiting liability for subsequent injuries through the
Special Disabilities Trust Fund; providing for a preferred worker program;
providing for temporary compensation and medical benefits; revising the
list of compensable injuries; amending s. 440.50, F.S.; authorizing the
division to transfer certain amounts from the Workers' Compensation
Administration Trust Fund to the Insurance Commissioner's Prosecutorial
Account in the Insurance Commissioner's Regulatory Trust Fund;
amending ss. 440.51 and 440.515, F.S., to conform; renumbering and
amending ss. 440.57, 440.5705, 440.571, 440.575, and 440.58, F.S., to
conform; amending s. 440.572, F.S.; correcting cross references; creating s.
440.593, F.S.; providing for data collection by the division; creating s.
440.595, F.S.; establishing a pilot program for designated physicians;
requiring the department to make an interim report; creating the "Florida
Occupational Safety and Health Act," consisting of ss. 442.001, 442.002,
442.003, 442.004, 442.005, 442.006, 442.007, 442.008, 442.009, 422.010,
442.011, 442.012, 442.013, 442.014, 442.015, 442.016, 442.017, 442.018,
442.019, 442.020, 442.021, and 442.022, F.S.; renumbering and amending
portions of ss. 440.09,440.46, and 440.56, F.S.; renumbering s. 440.152, F.S.;
providing a short title; providing definitions; providing legislative intent;
authorizing the division to adopt rules; providing powers and duties of the
division; providing employer responsibilities related to safety; providing
for jurisdiction and authority of the division; providing for a right of entry;
requiring the division to develop safety and health programs for certain
employers; requiring safety consultations with policyholders under certain
circumstances; providing criteria; authorizing the division to adopt rules
related to such committees; providing penalties for employers who fail or
refuse to comply with division rules; requiring the division to cooperate
with the Federal Government; providing for cancellation of contracts of
certain employers under certain circumstances; providing for expenses of
administration; authorizing the division to enter and inspect places of
employment for purposes of compliance; providing a penalty for refusing
to admit; providing employees' rights and responsibilities; providing for
compliance; prohibiting making false statements to carriers; providing
penalties for carriers under certain circumstances; providing preemptive
authority to the division to adopt certain rules; prohibiting certain acts;
providing penalties; amending s. 489.115, F.S.; requiring the Construction
Industry Licensing Board to specify by rule the content of certain
continuing education courses under certain circumstances; providing for
transfer of certain functions of the Department of Labor and Employment
Security to the Department of Insurance; creating s. 624.461, F.S.;
providing a definition; amending s. 624.462, F.S.; providing for
participation by commercial self-insurance funds in the Florida Self-
Insurer's Guaranty Fund Association; amending ss. 624.463, 624.473,
624.474, 624.476, 624.480, 624.482, 624.484, 624.486, and 624.488, F.S., to
conform; creating s. 624.4741, F.S.; providing for venue in assessment
actions; creating s. 624.522, F.S.; creating the Insurance Commissioner's
prosecutorial account within the Insurance Commissioner's Regulatory
Trust Fund; amending s. 627.041, F.S.; correcting a cross reference;
amending s. 627.0915, F.S.; requiring the Department of Insurance to
provide for giving consideration in setting rates to certain employers who
implement certain safety programs; creating s. 627.0916, F.S.; providing for
rates of agricultural horse farms; amending s. 627.092, F.S.; placing the
Workers' Compensation Administrator within the Division of Insurer
Services; amending s. 627.101, F.S.; requiring the department to publish
certain approved filings; providing for effect and operation of certain
filings; creating s. 627.212, F.S.; authorizing the department to approve
certain workers' compensation coverage insurance rating plans; amending
s. 627.311, F.S., relating to self-insurer participation in equitable
apportionment; amending s. 627.4133, F.S.; excluding workers'
compensation insurance from certain notice provisions; creating part XXII
of chapter 627; creating the Workers' Compensation Insurance Purchasing
Alliance within the Department of Insurance; providing powers, duties,
and responsibilities of the alliance; providing for membership; creating
part V of chapter 631, F.S.; creating the "Florida Group Self-Insurer's Fund
Guaranty Association Act"; providing definitions; providing purposes;
creating the Florida Group Self-insurer's Guaranty Fund Association,
Incorporated; providing for a board of directors; providing powers and
duties of the association; authorizing the board to make assessments;
requiring the association to submit a plan of operation to the division;

providing for preventing self-insurer's fund insolvencies or impairments;
providing for public disclosure of certain records of the association;

providing for confidentiality of certain reports and information of the
association; providing for liability for unpaid claims; providing immunity;
prohibiting certain advertisements or solicitations; providing for the
establishment of a legal counsel in certain proceedings before the
department; providing duties of the legal counsel; providing for
assumption by the association of certain liabilities of the Certified
Pulpwood Dealers Self-Insurers Fund; creating the Workers'
Compensation Small Employer Self-Insurance Fund in the Department of
Insurance; providing for coverage, eligibility, and administration of the
fund; providing duties and responsibilities of the Insurance Commissioner;
providing for a board of trustees; amending s. 772.102, F.S.; including
certain activities relating to workers' compensation within a list of criminal
activities; amending s. 895.02, F.S.; including certain activities relating to
workers' compensation within a list of racketeering activities; repealing s.
440.077, F.S., relating to the effect of electing to be exempt; repealing s.
440.20(12), F.S., relating to lump-sum payments; repealing s. 440.37, F.S.,
relating to misrepresentation and fraudulent activities; repealing s. 440.43,
F.S., relating to a penalty for failure to secure payment of compensation;
repealing s. 440.56(4), F.S., relating to employers with work-related
injuries; repealing s. 440.59, F.S., relating to risk management reports;
providing for appropriations; providing an effective date.
-was read the first time by title. On motion by Rep. Lippman, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title.
The Committee on Appropriations offered the following amendment:
Amendment 1-On page 229, line 1, insert a new Section 51.: Section
51. Section 440.5951, Florida Statutes, is created to read:
440.5951 Pilot program for legal assistance to injured workers.-
(1) It is the intent of the Legislature to determine whether the costs
of the workers' compensation system can be effectively contained and
benefits can be provided to injured workers on a more timely basis by
providing injured workers an alternative to private legal counsel, while
ensuring injured workers adequate legal representation at each critical
stage of the system. Therefore, the Legislature authorizes the
establishment of one or more pilot programs to be administered by the
department. Each pilot program shall terminate 3 years after the first
data of operation of the program, unless extended by act of the
Legislature. In order to implement these programs, the department is
authorized to:
(a) Establish and maintain an Office of Legal Assistance within the
Department of Labor and Employment Security to provide legal
assistance to injured workers entitled to benefits pursuant to chapter 440,
F.S.
(b) Adopt emergency rules implementing the organization and
procedures of the Office of Legal Assistance or any other provision this
section, and promulgate permanent rules as needed.
(c) Collect attorneys' fees as awarded under this chapter and deposit
them in the Workers' Compensation Administration Trust Fund.
(2) All salaries and other expenses associated with this pilot program
shall be paid out of the fund established in s. 440.50.
(3) The department may, without a bidding process, negotiate and
enter into such contracts as may be necessary or appropriate in its
judgment to implement the pilot program.
(4) The department shall make an interim report on or before
January 1, 1995, and each January 1st until the final report on or before
the termination date specified in subsection (1), to the President of the
Senate, the Speaker of the House of Representatives, the Majority and
Minority Leaders of the Senate, the House of Representatives, and the
Governor on the activities, findings, and recommendations of the
department relative to the pilot program. The department shall monitor,
evaluate, and report the following information regarding the provision of
services pursuant to the pilot program:

(a) Cost savings.
(b) Effectiveness.

November 2, 1993

19

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(c) Effect upon timely provision of benefits to injured workers.
(d) Complaints from injured workers, employers, carriers, medical
providers, and judges of compensation claims. (renumber subsequent
sections)
Rep. Mackey moved the adoption of the amendment.
The Committee on Appropriations offered the following amendment to
the amendment:
Amendment 1 to Amendment 1-On page 2, line 1, strike
"emergency" and on page 2, lines 11-13, strike all of said lines
Rep. Mackey moved the adoption of the amendment to the amendment,
which was adopted.
The question recurred on the adoption of Amendment 1, as amended,
which was adopted.
The Committee on Appropriations offered the following amendment:
Amendment 2-On page 286, line 10, insert:
(4) To the Department of Labor and Employment Security 18 FTE
and $975,000 to establish and operate a pilot program for legal assistance
to injured workers.
Rep. Mackey moved the adoption of the amendment, which was
adopted.
The Committee on Appropriations offered the following amendment:
Amendment 3-On page 286, lines 7-9, strike all of said lines and
insert:
(3) To the Agency for Health Care Administration, 16 FTE positions
and $1,214,887 in salaries and benefits, expenses, and operating capital
outlay.
Rep. Mackey moved the adoption of the amendment, which was
adopted.
The Committee on Appropriations offered the following amendment:
Amendment 4-On page 286, line 2, strike "$3,216,218" and insert:
$716,218
Rep. Mackey moved the adoption of the amendment, which was
adopted.
Representatives) Clemons offered the following amendment:
Amendment 5-On page 201, line 21, through page 202, line 23, strike
all of said lines and insert:
440.45 Judges of compensation claims; Chief Judge.-
(2) Each full-time judge of compensation claims shall be appointed for
a term of 4 years, but during the term of office may be removed by the
Governor for cause. Prior to the expiration of the term of office of the judge
of compensation claims, the conduct of such judge of compensation claims
shall be reviewed by the appellate district judicial nominating
commission in the appellate district in which the judge of compensation
claims principally conducts hearings otatowido nomating. commiion,
which commission shall determine whether such judge of compensation
claims shall be retained in office. Evaluati. n form to bo eonoidorod by tho

SA report of the
decision shall be furnished to the Governor no later than 6 months prior
to the expiration of the term of the judge of compensation claims. If the
the appellate district judicial nominating commission ohall b atewi

nominating commiooion votes not to retain the judge of compensation
claims, the judge of compensation claims shall not be reappointed but shall

remain in office until a successor is appointed and qualified. If the
appellate district nominating commissionstatewidc -nminating

eemmiseion votes to retain the judge of compensation claims in office, then
the Governor shall reappoint the judge of compensation claims for a term
of 4 years. Judges of compensation claims shall be subject to the
jurisdiction of the Judicial Qualifications Commission.
Rep. Clemons moved the adoption of the amendment.
Representatives) Clemons offered the following substitute amendment:
Substitute Amendment 5-On page 202, line 20, strike may shall
and insert: shall
Rep. Clemons moved the adoption of the substitute amendment, which
failed of adoption.
The question recurred on the adoption of Amendment 5, which failed
of adoption.
Representatives) Boyd offered the following amendment:
Amendment 6-On page 14, line 9, through page 17, line 11, strike all
of said lines and insert:
Section 2. Subsection (22) of section 287.057, Florida Statutes, is added
to said section to read:
(22) All contracts costing in excess of the amount provided in s.
287.017 for CATEGORY TWO shall contain a provision that the
contractor shall continuously maintain security for the payment of
compensation as required by ss. 440.10 and 440.38 during the term of the
contract. This section shall take effect July 1, 1994. (renumber subsequent
sections)
and the title is amended as follows:
On page 1, lines 11-15, strike all of said lines and insert:
amending s. 287.057, F.S.; requiring certain contracts to contain certain
payment security provisions; amending s. 440.015, F.S.;
Rep. Boyd moved the adoption of the amendment, which was adopted.
Representatives) Boyd offered the following amendment:
Amendment 7-On page 286, line 10, strike "This" and insert before
"act": Except as otherwise provided herein, this
Rep. Boyd moved the adoption of the amendment, which was adopted.
Representatives) Glickman offered the following amendment:
Amendment 8-On page 218, line 27, insert after the period: However,
any employer, who has in writing asked the employee of the existence of
a pre-existing permanent physical impairment and the employee has not
disclosed it to the employer, shall be eligible for reimbursement under this
subsection.
Rep. Glickman moved the adoption of the amendment, which was
adopted.
Representatives) Glickman, Dawson, Miller, Chestnut and Lawson
offered the following amendment:
Amendment 9-On page 120, line 5, after the word "including" strike
"14" and insert: 4
Rep. Glickman moved the adoption of the amendment, which failed of
adoption.
Representatives) Boyd offered the following amendment:
Amendment 10-On page 279, line 12, through page 281, line 7, strike
all of said lines
Rep. Boyd moved the adoption of the amendment. Subsequently,
Amendment 10 was withdrawn.
Representatives) Mackey offered the following amendment:
Amendment 11-On page 64, line 4, strike "440.106" and insert:
440.107
Rep. Mackey moved the adoption of the amendment, which was
adopted.

Representatives) Warner and Benson offered the following amendment:
Amendment 12-On page 13, line 25, insert:

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November 2, 1993

JOURNAL OF THE HOUSI

Section 1. Short title.-This act may be cited as the "Florida No-fault
Workers' Compensation and Employer Liability Act."
Section 2. Legislative intent.-It is the intent of the Legislature that
the provisions of this act be an optional alternative to the provisions of
the Workers' Compensation Law under chapter 440, Florida Statutes.
The Legislature further intends that this act form the basis for 24-hour
health care, loss of income protection, and accidental death and
dismemberment insurance for all workers of this state; that employers
and employees share in the cost of such system; and that employers and
employees share in the responsibility for safety in the workplace. This act
is based upon the mutual renunciation of common law rights and defenses
with respect to certain claims, and the mutual acceptance of limitations
on rights, claims, and defenses in exchange for the benefits and protection
of this act. It is also the intent of the Legislature to set forth the exclusive
duties of employers to their employees and to set forth and limit the
exclusive defenses that employers may raise in response to claims brought
against them by their employees.
Section 3. Application.-Notwithstanding the provisions of ss. 440.03
and 440.38, Florida Statutes, or any other provision of the laws of this
state, any employer may elect to be bound by the provisions of this act
as an alternative to and instead of the provisions of chapter 440, Florida
Statutes. All employees of any employer who elects to be bound by the
provisions of this act shall be bound and governed by the provisions of this
act.
Section 4. Notice of election.-Every employer who elects to be bound
by the provisions of this act shall file a notice with the Department of
Insurance and provide proof of financial responsibility pursuant to the
provisions of this act. Within 5 days after receiving such notice, the
department shall send to the employer a confirmation of the date of
receipt. The employer and employees of the employer shall be governed
by the provisions of this act on the 30th day after the date of confirmation,
unless the employer has not provided proof of financial responsibility to
the department.
Section 5. Revocation of election.-Coverage under this act shall
continue until the employer revokes the election or ceases doing business.
However, the benefits under this act shall continue for all employees for
90 days after the employer revokes the election or ceases doing business.
Section 6. Notice to employees.-Each employer who elects to be
bound by the provisions of this act shall provide notice to each employee
pursuant to rule adopted by the department. However, failure to provide
such notice shall not affect the liabilities, responsibilities, or defenses of
the employer or claims of employees.
Section 7. Definitions.-When used in this act, unless the context
clearly requires otherwise, the following terms shall have the following
meanings:
(1) "Carrier" means any person or fund authorized under the laws of
this state to provide insurance for the claims and benefits under this act
and includes a self-insurer, and a commercial self-insurance fund
authorized under s. 624.462, Florida Statutes.
(2) "Casual" means employment when the work contemplated is to be
completed in no more than 20 working days, without regard to the number
of persons employed, and when the total cost for labor for all employees
engaged in such work is less than $2,500.
(3) "Construction industry" means for-profit activities involving the
carrying out of any building, clearing, filling, excavation, or substantial
improvement in the size or use of any structure or the appearance of any
land. When appropriate to the context, "construction" refers to the act
of construction or the result of construction. However, "construction"
shall not mean a landowner's act of construction or the result of a
construction upon his or her own premises, provided such premises are
not intended to be sold or resold.
(4) "Department" means the Department of Insurance.
(5) (a) "Employee" means every person engaged in any employment
under any appointment or contract of hire or apprenticeship, express or

implied, oral or written, including aliens and also including minors,
whether lawfully or unlawfully employed.

November 2, 1993

2. All private employment in which one or more employees are
employed by the same employer.
3. Volunteer firefighters responding to or assisting with fire or
medical emergencies whether or not the firefighters are on duty.

E OF REPRESENTATIVES 21

(b) "Employee" includes any person who is an officer of a corporation
and who performs services for remuneration for such corporation within
this state, whether or not such services are continuous. Services shall be
presumed to have been rendered the corporation in cases when such
officer is compensated by other than dividends upon shares of stock of
such corporation owned by him.
(c) "Employee" does not include a sole proprietor or a partner, but a
sole proprietor or partner who devotes full time to the proprietorship or
partnership and receives wages is an employee. A sole proprietor or
partner who is not an employee may elect to be included in the definition
of employee by filing notice thereof as provided in section 10 of this act.
(d) "Employee" does not include:
1. An independent contractor who is not subject to the control and
direction of the employer as to his actual conduct, including:
a. An individual who agrees in writing to perform services for a person
or corporation without supervision or control as a real estate salesman or
agent, if such service by such individual for such person or corporation
is performed for remuneration solely by way of commission;
b. Bands, orchestras, and musical and theatrical performers,
including disk jockeys, performing in licensed premises as defined in
chapter 562, Florida Statutes, provided a written contract evidencing an
independent contractor relationship is entered into prior to the
commencement of such entertainment; and
c. An owner-operator of a motor vehicle who transports property
under a written contract with a motor carrier which evidences a
relationship by which the owner-operator assumes the responsibility of
an employer for the performance of the contract, provided that the owner-
operator is required to furnish the necessary motor, vehicle equipment
and all costs incidental to the performance of the contract, including, but
not limited to, fuel, taxes, licenses, repairs, and hired help; and the owner-
operator is paid a commission for his transportation service and is not
paid by the hour or on some other time-measured basis.
2. A person whose employment is both casual and not in the course
of the trade, business, profession, or occupation of the employer.
3. A volunteer, except a volunteer worker for the state or a county,
city, or other governmental entity. A person who does not receive
monetary remuneration for his services is presumed to be a volunteer
unless there is substantial evidence that a valuable consideration was
intended by both employer and employee. For purposes of this act, the
term "volunteer" includes, but is not limited to:
a. Persons who serve in private nonprofit agencies and who receive no
compensation other than expenses in an amount less than or equivalent
to the standard mileage and per diem expenses provided to salaried
employees in the same agency or, in the event that such agency does not
have salaried employees who receive mileage and per diem, then such
volunteers who receive no compensation other than expenses in an
amount less than or equivalent to the customary mileage and per diem
paid to salaried workers in the community as determined by the
department; and
b. Volunteers participating in federal programs established pursuant
to Pub. L. No. 93-113.
(6) "Employer" means the state and all political subdivisions thereof,
all public and quasi-public corporations therein, every person carrying on
any employment, and the legal representative of a deceased person or the
receiver or trustees of any person.
(7) (a) "Employment," subject to the other provisions of this act,
means any service performed by an employee for the person employing
him.
(b) "Employment" includes:
1. Employment by the state and all political subdivisions thereof and
all public and quasi-public corporations therein, including officers
elected at the polls.

22 JOURNAL OF THE HOUSE

(c) "Employment" does not include service performed by or as:
1. Domestic servants in private homes.
2. Agricultural labor performed on a farm in the employ of a bona fide
farmer, or association of farmers, who employs 5 or fewer regular
employees and who employs fewer than 12 other employees at one time
for seasonal agricultural labor that is completed in less than 30 days,
provided such seasonal employment does not exceed 45 days in the same
calendar year. The term "farm" includes stock, dairy, poultry, fruit, fur-
bearing animals, and fish farms, and truck farms, ranches, nurseries, and
orchards. The term "agricultural labor" includes field foremen,
timekeepers, checkers, and other farm labor supervisory personnel.
3. Professional athletes, such as professional boxers, wrestlers,
baseball, football, basketball, hockey, polo, tennis, jai alai, and similar
players, and motorsports teams competing in a motor racing event as
defined in s. 549.08, Florida Statutes.
4. Labor under a sentence of a court to perform community services
as provided in s. 316.193, Florida Statutes.
(8) "Person" means individual, partnership, association, or
corporation, including any public service corporation.
(9) "Self-insurer" means:
(a) Any employer who has secured payment of claims or benefits
under this act as an individual self-insurer;
(b) Any employer who has secured payment of claims or benefits
under this act through a group self-insurer pursuant to section 34 of this
act;
(c) Any group self-insurer established pursuant to section 34 of this
act;
(d) A public utility as defined in s. 364.02, Florida Statutes, or s.
366.02, Florida Statutes, that has assumed by contract the liabilities of
contractors or subcontractors pursuant to section 35 of this act; or
(e) Any local government pool established pursuant to section 36 of
this act.
(10) "Time of injury" means the time of the occurrence of the accident
resulting in the injury.
(11) "Wages" means the money rate at which the service rendered is
recompensed under the contract of hiring in force at the time of the injury
and includes only the wages earned on the job where the employee is
injured and does not include wages from outside or concurrent
employment except in the case of a volunteer firefighter, together with
the reasonable value of housing furnished to the employee by the
employer which is the permanent year-round residence of the employee,
and gratuities to the extent reported to the employer in writing as taxable
income received in the course of employment from others than the
employer and employer contributions for health insurance for the
employee or the employee's dependents. However, housing furnished to
migrant workers shall be included in wages unless provided after the time
of injury. In employment in which an employee receives consideration for
housing, the reasonable value of such housing compensation shall be the
actual cost to the employer or based upon the Fair Market Rent Survey
adopted pursuant to s. 8 of the Housing and Urban Development Act of
1974, whichever is less. However, if employer contributions for housing or
health insurance are continued after the time of the injury, the
contributions are not "wages" for the purpose of calculating an employee's
average weekly wage.
(12) "Weekly compensation rate" means and refers to the amount of
compensation payable for a period of 7 consecutive days, including any
Saturday, Sundays, holidays, and other nonworking days which fall
within such period of 7 consecutive days. When Saturdays, Sundays,
holidays, or other nonworking days immediately follow the first 7 days of
disability or occur at the end of a period of disability as the last day or
days of such period, such nonworking days constitute a part of the period
of disability with respect to which compensation is payable.

(13) "Construction design professional" means an architect,
professional engineer, landscape architect, or land surveyor, or any
corporation, professional or general, that has a certificate to practice in
the construction design field from the Florida Department of Business
and Professional Regulation.

(5) Employers must continue an employee's insurance coverage under
this act for a period of 30 days after termination of employment, and
allow employees to extend and pay for coverage for an additional 18
months thereafter.

E OF REPRESENTATIVES November 2, 1993

(14) "Individual self-insurer" means any employer who has secured
payment of claims or benefits under this act as an individual self-insurer.
(15) "Domestic individual self-insurer" means an individual self-
insurer:
(a) Which is a corporation formed under the laws of this state;
(b) Who is an individual who is a resident of this state or whose
primary place of business is located in this state; or
(c) Which is a partnership whose principals are residents of this state
or whose primary place of business is located in this state.
(16) "Foreign individual self-insurer" means an individual self-
insurer:
(a) Which is a corporation formed under the laws of any state,
district, territory, or commonwealth of the United States other than this
state;
(b) Who is an individual who is not a resident of this state and whose
primary place of business is not located in this state; or
(c) Which is a partnership whose principals are not residents of this
state and whose primary place of business is not located in this state.
Section 8. Benefits payable to employees.-
(1) Employers shall be responsible for 80 percent of their employees'
reasonable medical expenses due to injury or illness, occurring on or off
the job, up to $25,000 per year; 90 percent of such expenses over $25,000
and up to $50,000 per year; and 100 percent of expenses over $50,000, up
to a maximum of $100,000 per year. There shall be no employee
deductibles, but employers may use and fund deductibles to reduce
insurance costs.
(a) If an employer elects to use private health insurance or an
approved self-insurance plan, the employer may charge its employees up
to the lesser of 33 percent of the premium cost or 5 percent of an
employee's wages and collect the employees' share through payroll
deductions.
(b) Employers and providers may elect to use managed care systems,
health maintenance organizations, preferred provider organizations, or
any other health insurance organization or association, but the
employee's coinsurance share shall be one-half of the coinsurance
amounts set forth above.
(2) (a) Employers are responsible for an employee's wage loss, due to
injury or illness, occurring on or off the job, for up to a total of 5 days in
any one calendar year, plus two-thirds of an employee's wage loss for up
to 12 consecutive months which is due to a particular injury or illness and
which results in more than 10 days of lost work.
(b) If an employee is not able to perform the normal duties of his
regular job, but is able to perform other work available and offered by his
employee, the employee must accept and perform the offered
employment. The wages paid shall be a credit toward the employer's
obligation under this section.
(c) If an employer elects to use private disability insurance or an
approved self-insurance plan, the employer may charge its employees up
to the lesser of 33 percent of the premium cost or 1.5 percent of an
employee's wages and collect the employees' share through payroll
deductions.
(3) Employers or their insurance providers may require periodic
evaluations by a physician of an employee's disability, medical condition,
treatment, or prognosis, but an employee may request an additional
independent evaluation of their own, to be paid for by the employer, if
there is a reduction in or denial of benefits.
(4) Employers must pay for accidental death and dismemberment
insurance coverage for each employee in an amount which is not less than
twice the employee's annual wages, with a minimum of $25,000 and a
maximum of $100,000.

Section 9. Employer's duties to employees.-Every employer is
responsible for its employee's injuries and illnesses, arising out of and in
the course of employment, which are the fault of the employer. Regarding
fault, every employer has a duty to its employees to provide:
(1) A safe workplace.
(2) Sufficient coworkers to do the work.
(3) Safe and sufficient tools and equipment, unless such tools and
equipment are to be provided by the employee under the terms of
employment.
(4) Adequate safety instruction and warnings of dangers in the
workplace.
(5) Selection, training, and supervision of competent coworkers.
Section 10. Employer's defenses.-In response to any claim filed by
an employee, an employer may not raise the defenses of assumption of
risk, contributory negligence, or injury caused by a fellow servant.
However, employers may raise the defenses of comparative negligence;
intentional act of the employee to inflict self-injury; intentional act of a
coemployee to injure the employee, unless there is an independent act of
negligence on the part of the employer; or substance abuse or intoxication
on the part of the employee, which contributes to the loss, injury, or
illness.
Section 11. Coworker immunity.-Except in the case of intentional
acts to injure, coworkers are immune from suits for injuries caused to
fellow employees, and the liability of an employer shall not be reduced
by a coworker's percentage of fault.
Section 12. Notice of claims.-Not less than 90 days and not more
than 365 days after a death, injury, or illness which arises out of and in
the course of employment and which is the fault of the employer, an
employee or his personal representative may file a notice of claim with
the department. The department shall be responsible for giving notice of
the claim to the employer and its insurance provider or self-insurance
administrator. The notice of claim need not be in any particular form and
the only required information shall be the employee's name, address,
phone number, and Social Security number; the employer's name,
address, phone number, and employer identification number, if available;
and the approximate date and a brief description of the incident or basis
of the claim.
Section 13. Response to claims.-Within 90 days after receiving
notice of a claim, the employer shall file a response with the department,
admitting or denying fault and setting forth any defenses to be relied
upon by the employer.
(1) If the employer admits fault and raises no defenses, the employer
shall be responsible for 100 percent of the employee's reasonable medical
expenses, 75 percent of the employee's past wage loss and loss of capacity
to earn in the future, and noneconomic damages up to a maximum of
$250,000.
(a) An employee may demand arbitration or file suit within 2 years
after receiving the employer's response, but the court shall order
mediation or binding arbitration upon the request of either party.
(b) An employee shall be entitled to recover 50 percent of their
reasonable attorney's fees and 100 percent of their reasonable costs
incurred after receiving the employer's response.
(2) If an employer admits fault, but raises only the defenses of
comparative negligence or substance abuse or intoxication, the employer
shall be responsible for 100 percent of the employee's reasonable medical
expenses, 75 percent of the employee's past wage loss and loss of capacity
to earn in the future, and noneconomic damages up to $500,000. However,
an employee's recovery shall be reduced by the employee's percentage of
comparative negligence or causation attributable to substance abuse or
intoxication.
(a) Within 90 days after receiving an employer's response, the matter
shall be referred to mandatory, binding arbitration on the issues of

comparative negligence or causation due to substance abuse or
intoxication.

23

(b) After the determination of comparative negligence or causation
due to substance abuse or intoxication, the employee may demand
mediation or arbitration or file suit within 2 years thereafter, but the
court shall order mediation or nonbinding arbitration upon the request
of either party.
(c) An employee shall be entitled to recover 75 percent of their
reasonable attorney's fees and 100 percent of their reasonable costs
incurred after receiving an employer's response.
(3) If an employer denies liability, raises defenses other than
comparative negligence or substance abuse or intoxication, or fails to file
a timely response to the notice of claim, the employee may file suit to
recover damages within 4 years thereafter. If an employee is the
prevailing party, they shall recover 100 percent of their reasonable
attorney's fees and costs incurred after receiving an employer's response.
(4) An employee may recover only that portion of stress, psychiatric,
or mental injuries which arise out of and are attributable to the course
and scope of employment.
(5) Health care, disability, wage continuation, or accidental death
and dismemberment benefits paid by or on behalf of the employer and
pertaining to injury or illness which is the subject matter of an employee
claim shall be an offset and deducted from the claim prior to the
calculation of any percentage fault on the part of the employee.
(6) The employer shall pay the costs of any arbitration under this act.
Arbitration may be conducted by any person mutually agreed upon by the
parties. If the parties cannot agree, the court may select a qualified
arbitrator from nominees submitted by the parties or refer the matter to
any recognized arbitration service or association.
Section 14. Expert witnesses.-No expert witness may testify in any
proceeding regarding a claim under this act unless a written report is
furnished to the opposing party at least 30 days prior to the testimony
being offered.
(1) The report must include the qualifications, background, and
experience of the expert; the specific facts relied upon by the expert in
forming their opinions; the sources of information or facts, and
authorities used by the expert, whether or not relied upon in forming the
opinions; and the specific opinions to be offered by the expert in the
proceedings.
(2) The fact that an expert testifies to opinions that may vary from
those given in the written report shall not bar their testimony, unless the
court finds that there was an intentional attempt to deceive or that the
variance is so great that it undermines the fairness of the proceedings.
Section 15. Comparative negligence.--In any proceeding to determine
comparative negligence or fault attributable to the employee for
substance abuse or intoxication, the trier of fact shall be bound by the
following standards:
(1) If the employee is partly at fault and such fault was a contributing
cause to the loss, injury, or illness, but the employee's fault was not equal
to or greater than that of the employer, the percentage of fault
attributable to the employee shall be 25 percent.
(2) If the employee is partly at fault and such fault was a contributing
cause to the loss, injury, or illness, and the employee's fault was equal to,
but not greater than, that of the employer, the percentage of fault
attributable to the employee shall be 50 percent.
(3) If the employee is partly at fault and such fault was a contributing
cause to the loss, injury, or illness, and the employee's fault was greater
than that of the employer, the percentage of fault attributable to the
employee shall be 75 percent.
Section 16. Proof of insurance or financial responsibility.-The
department may adopt rules requiring an employer to provide adequate
insurance, an approved self-insurance plan, or proof of financial
responsibility to meet their obligations under this act. Failure to comply
with the requirements of such rules or to provide benefit coverage
required by this act shall subject the employer to strict liability in tort
for any injuries or illnesses incurred by employees during any such period

of noncompliance and within the course of their employment, in addition
to any other penalties provided by law.

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Section 17. Waiver of exemption.-
(1) Every employer having in his employment any employee not
included in the definition of "employee" or excluded or exempted from the
operation of this act may at any time waive such exclusion or exemption
and accept the provisions of this act by giving notice thereof as provided
in section 10 of this act, and by so doing be as fully protected and covered
by the provisions of this act as if such exclusion or exemption had not
been contained herein.
(2) When any policy or contract of insurance specifically secures the
benefits of this act to any person not included in the definition of
"employee" or whose services are not included in the definition of
"employment" or who is otherwise excluded or exempted from the
operation of this act, the acceptance of such policy or contract of
insurance by the insured and the writing of same by the carrier shall
constitute a waiver of such exclusion or exemption and an acceptance of
the provisions of this act with respect to such person, notwithstanding
any other provisions of this act.
Section 18. Notice of exemption or acceptance and waiver of
exemption or acceptance.-
(1) Every sole proprietor or partner who elects to be included in the
definition of "employee" or who, after such election, revokes that election,
shall mail to the department in Tallahassee notice to such effect, in
accordance with a form to be prescribed by the department.
(2) No notice given pursuant to subsection (1) is effective until 30
days after the date it is mailed to the department in Tallahassee.
However, if an accident or occupational disease occurs less than 30 days
after the effective date of the insurance policy under which the payment
of benefits is secured or the date the employer qualified as a self-insurer,
such notice is effective as of 12:01 a.m. of the day following the date it is
mailed to the department in Tallahassee.
(3) The department may assess a fee, not to exceed $50, with each
request for election or renewal of election under this section. The funds
collected by the department shall be used to administer this section and
to audit the businesses that pay the fee for compliance with any
requirements of this act.
Section 19. Coverage; other states or other benefits.-
(1) Where an accident happens while the employee is employed
elsewhere than in this state, which would entitle him or his dependents
to benefits if it had happened in this state, the employee or his
dependents shall be entitled to benefits if the contract of employment was
made in this state, or the employment was principally localized in this
state. However, if an employee shall receive compensation or damages
under the laws of any other state, nothing herein contained shall be
construed so as to permit a total compensation for the same injury greater
than is provided herein.
(2) No benefits shall be payable in respect to the disability or death
of any employee covered by the Federal Employer's Liability Act, the
Longshoremen's and Harbor Worker's Compensation Act, or the Jones
Act.
Section 20. Construction design professionals.-Except as provided
in this act, no construction design professional who is retained to perform
professional services on a construction project, nor any employee of a
construction design professional in the performance of professional
services on the site of the construction project, shall be liable for any
injuries resulting from the employer's failure to comply with safety
standards on the construction project, unless responsibility for safety
practices is specifically assumed by contracts. The immunity provided by
this subsection to any construction design professional shall not apply to
the negligent preparation of design plans or specifications.
Section 21. Employee intoxication or drug use.-
(1) To ensure that the workplace is a drug and alcohol free
environment and to deter the use of drugs and alcohol at the workplace,
if the employer has reason to suspect that the injury was occasioned
primarily by the intoxication of the employee or by the use of any drug,
which affected the employee to the extent that the employee's normal
faculties were impaired, the employer may require the employee to

submit to a test for the presence of any or all drugs or alcohol in his
system.

(2) If the injured worker refuses to submit to a test for
nonprescription controlled substances or alcohol, it shall be presumed in
the absence of clear and convincing evidence to the contrary that the
injury was occasioned primarily by the influence of a nonprescription
controlled substance or alcohol.
(3) The department shall provide by rule for the authorization and
regulation of drug testing policies, procedures, and methods. Testing of
injured employees shall not commence until such rules are adopted.
Section 22. Law enforcement officer; when acting within the course of
employment.-If an employee:
(1) Is elected, appointed, or employed full time by a municipality, the
state, or any political subdivision, and is vested with authority to bear
arms and make arrests and his primary responsibility is the prevention
or detection of crime or the enforcement of the penal, criminal, traffic, or
highway laws of the state;
(2) Was discharging that primary responsibility within the state in a
place and under circumstances reasonably consistent with that primary
responsibility; and
(3) Was not engaged in services for which he was paid by a private
employer, and he and his public employer had no agreement providing
for workers' compensation coverage or benefits under this act for that
private employment;
the employee shall be deemed to have been acting within the course of
employment. The term "employee" as used in this section includes all
certified supervisory and command personnel whose duties include, in
whole or in part, responsibilities for the supervision, training, guidance,
and management of full-time law enforcement officers, part-time law
enforcement officers, or auxiliary law enforcement officers, but does not
include support personnel employed by the employing agency.
Section 23. Legislative intent; drug-free workplaces.-It is the intent
of the Legislature to promote drug-free workplaces in order that
employers in the state be afforded the opportunity to maximize their
levels of productivity, enhance their competitive positions in the
marketplace, and reach their desired levels of success without
experiencing the costs, delays, and tragedies associated with work-related
accidents resulting from drug abuse by employees. It is further the intent
of the Legislature that drug abuse be discouraged and that employees who
choose to engage in drug abuse face the risk of unemployment and the
forfeiture of benefits. If an employer implements a drug-free workplace
program which includes notice, education, and testing for drugs and
alcohol pursuant to rules developed by the department, the employer may
required the employee to submit to a test for the presence of drugs or
alcohol and, if a drug or alcohol is found to be present in the employee's
system at a level prescribed by rule adopted pursuant to this act, the
employee may be terminated. However, a drug-free workplace program
shall require the employer to notify all employees that it is a condition
of employment to refrain from taking drugs on or off the job, and if the
injured worker refuses to submit to a test for drugs or alcohol, he risks
termination of employment.
Section 24. Drug-free workplace program requirements. -The
following shall apply to a drug-free workplace program implemented
pursuant to rules adopted by the department:
(1) DEFINITIONS.-Except where the context otherwise requires,
as used in this act:
(a) "Drug" means alcohol, including distilled spirits, wine, malt
beverages, and intoxicating liquors; amphetamines; cannabinoids;
cocaine; phencyclidine (PCP); hallucinogens; methaqualone; opiates;
barbiturates; benzodiazepines; synthetic narcotics; designer drugs; or a
metabolite of any of the substances listed herein.
(b) "Drug test" or "test" means any chemical, biological, or physical
instrumental analysis administered for the purpose of determining the
presence or absence of a drug or its metabolites.
(c) "Initial drug test" means a sensitive, rapid, and reliable procedure
to identify negative and presumptive positive specimens. All initial tests
shall use an immunoassay procedure or an equivalent, or shall use a more
accurate scientifically accepted method approved by the Department of

Health and Rehabilitative Services as such more accurate technology
becomes available in a cost-effective form.

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(d) "Confirmation test," "confirmed test," or "confirmed drug test"
means a second analytical procedure used to identify the presence of a
specific drug or metabolite in a specimen. The confirmation test must be
different in scientific principle from that of the initial test procedure.
This confirmation method must be capable of providing requisite
specificity, sensitivity, and quantitative accuracy.
(e) "Chain of custody" refers to the methodology of tracking specified
materials or substances for the purpose of maintaining control and
accountability from initial collection to final disposition for all such
materials or substances and providing for accountability at each stage in
handling, testing, and storing specimens and reporting test results.
(f) "Job applicant" means a person who has applied for a position
with an employer and has been offered employment conditioned upon
successfully passing a drug test.
(g) "Employee" means any person who works for salary, wages, or
other remuneration for an employer.
(h) "Employer" means a person or entity that employs a person and
that is covered by the Workers' Compensation Law.
(i) "Prescription or nonprescription medication" means a drug or
medication obtained pursuant to a prescription as defined by s. 893.02,
Florida Statutes, or a medication that is authorized pursuant to federal
or state law for general distribution and use without a prescription in the
treatment of human diseases, ailments, or injuries.
(j) "Reasonable suspicion drug testing" means drug testing based on
a belief that an employee is using or has used drugs in violation of the
employer's policy drawn from specific objective and articulable facts and
reasonable inferences drawn from those facts in light of experience.
Among other things, such facts and inferences may be based upon:
1. Observable phenomena while at work, such as direct observation of
drug use or of the physical symptoms or manifestations of being under the
influence of a drug.
2. Abnormal conduct or erratic behavior while at work or a significant
deterioration in work performance.
3. A report of drug use, provided by a reliable and credible source,
which has been independently corroborated.
4. Evidence that an individual has tampered with a drug test during
his employment with the current employer.
5. Information that an employee has caused, or contributed to, an
accident while at work.
6. Evidence that an employee has used, possessed, sold, solicited, or
transferred drugs while working or while on the employer's premises or
while operating the employer's vehicle, machinery, or equipment.
(k) "Specimen" means tissue, hair, or product of the human body
capable of revealing the presence of drugs or their metabolites.
(1) "Employee assistance program" means an established program for
employee assessment, counseling, and possible referral to an alcohol and
drug rehabilitation program.
(2) DRUG TESTING.-All drug testing conducted by employers
shall be in conformity with the standards established in this section and
all applicable rules adopted pursuant to this section. However, employers
shall not have a legal duty under this section to request an employee or
job applicant to undergo drug testing.
(3) NOTICE TO EMPLOYEES AND JOB APPLICANTS.-Prior to
testing, all employees and job applicants for employment must be given
a written policy statement from the employer which contains:
(a) A general statement of the employer's policy on employee drug
use, which shall identify:
1. The types of testing an employee or job applicant may be required
to submit to, including reasonable suspicion or other basis; and
2. The actions the employer may take against an employee or job
applicant on the basis of a positive confirmed drug test result.

(b) A statement advising the employee or job applicant of the
existence of this section.

(c) A general statement concerning confidentiality.
(d) Procedures for employees and job applicants to confidentially
report the use of prescription or nonprescription medications both before
and after being tested. Additionally, employees and job applicants shall
receive notice of the most common medications by brand name or common
name, as applicable, as well as by chemical name, which may alter or
affect a drug test. A list of such medications as developed by the
Department of Health and Rehabilitative Services shall be available to
employers through the department.
(e) The consequences of refusing to submit to a drug test.
(f) Names, addresses, and telephone numbers of employee assistance
programs and local alcohol and drug rehabilitation programs.
(g) A statement that an employee or job applicant who receives a
positive confirmed drug test result may contest or explain the result to
the employer within 5 working days after written notification of the
positive test result. If an employee's or job applicant's explanation or
challenge is unsatisfactory to the employer, the person may contest the
drug test result pursuant to rules adopted by the department.
(h) A statement informing the employee or job applicant of his
responsibility to notify the laboratory of any administrative or civil action
brought pursuant to this section.
(i) A list of all drugs for which the employer will test, described by
brand names or common names, as applicable, as well as by chemical
names.
(j) A statement regarding any applicable collective bargaining
agreement or contract and the right to appeal to the Public Employees
Relations Commission or applicable court.
(k) A statement notifying employees and job applicants of their right
to consult the testing laboratory for technical information regarding
prescription and nonprescription medication.
(1) An employer not having a drug testing program shall ensure that
at least 60 days elapse between a general one-time notice to all employees
that a drug testing program is being implemented and the beginning of
actual drug testing. An employer having a drug testing program in place
prior to the effective date of this section is not required to provide a 60-
day notice period.
(m) An employer shall include notice of drug testing on vacancy
announcements for those positions for which drug testing is required. A
notice of the employer's drug testing policy must also be posted in an
appropriate and conspicuous location on the employer's premises, and
copies of the policy must be made available for inspection by the general
public during regular business hours in the employer's personnel office
or other suitable locations.
(4) TYPES OF TESTING.-An employer is required to conduct the
following types of drug tests in order to qualify for the discounts provided
under s. 627.0915, Florida Statutes:
(a) Job applicant testing.-An employer must require job applicants
to submit to a drug test and may use a refusal to submit to a drug test
or a positive confirmed drug test as a basis for refusal to hire the job
applicant.
(b) Reasonable suspicion.-An employer must require an employee to
submit to reasonable suspicion drug testing.
(c) Routine fitness for duty.-An employer must require an employee
to submit to a drug test if the test is conducted as part of a routinely
scheduled employee fitness-for-duty medical examination that is part of
the employer's established policy or that is scheduled routinely for all
members of an employment classification or group.
(d) Followup testing.-If the employee in the course of employment
enters an employee assistance program for drug-related problems, or an
alcohol and drug rehabilitation program, the employer must require the
employee to submit to a drug test as a followup to such program, and on
a quarterly, semiannual, or annual basis for up to 2 years thereafter.

(5) PROCEDURES AND EMPLOYEE PROTECTION.-All
specimen collection and testing for drugs under this section shall be
performed in accordance with the following procedures:

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(a) A sample shall be collected with due regard to the privacy of the
individual providing the sample, and in a manner reasonably calculated
to prevent substitution or contamination of the sample.
(b) Specimen collection shall be documented, and the documentation
procedures shall include:
1. Labeling of specimen containers so as to reasonably preclude the
likelihood of erroneous identification of test results.
2. A form for the employee or job applicant to provide any
information he considers relevant to the test, including identification of
currently or recently used prescription or nonprescription medication or
other relevant medical information. Such form shall provide notice of the
most common medications by brand name or common name, as
applicable, as well as by chemical name, which may alter or affect a drug
test. The providing of information shall not preclude the administration
of the drug test, but shall be taken into account in interpreting any
positive confirmed results.
(c) Specimen collection, storage, and transportation to the testing
site shall be performed in a manner which will reasonably preclude
specimen contamination or adulteration.
(d) Each initial and confirmation test conducted under this section,
not including the taking or collecting of a specimen to be tested, shall be
conducted by a licensed laboratory as described in subsection (9).
(e) A specimen for a drug test may be taken or collected by any of the
following persons:
1. A physician, a physician assistant, a registered professional nurse,
a licensed practical nurse, or a nurse practitioner or a certified paramedic
who is present at the scene of an accident for the purpose of rendering
emergency medical service or treatment.
2. A qualified person employed by a licensed laboratory.
(f) A person who collects or takes a specimen for a drug test conducted
pursuant to this section shall collect an amount sufficient for two drug
tests as determined by the Department of Health and Rehabilitative
Services.
(g) Every specimen that produces a positive confirmed result shall be
preserved by the licensed laboratory that conducts the confirmation test
for a period of at least 210 days after the results of the positive
confirmation test are mailed or otherwise delivered to the employer.
However, if an employee or job applicant undertakes an administrative
or legal challenge to the test result, the employee or job applicant shall
notify the laboratory and the sample shall be retained by the laboratory
until the case or administrative appeal is settled. During the 180-day
period after written notification of a positive test result, the employee or
job applicant who has provided the specimen shall be permitted by the
employer to have a portion of the specimen retested, at the employee's
or job applicant's expense, at another laboratory, licensed and approved
by the Department of Health and Rehabilitative Services, chosen by the
employee or job applicant. The second laboratory must test at equal or
greater sensitivity for the drug in question as the first laboratory. The
first laboratory which performed the test for the employer shall be
responsible for the transfer of the portion of the specimen to be retested,
and for the integrity of the chain of custody during such transfer.
(h) Within 5 working days after receipt of a positive confirmed test
result from the testing laboratory, an employer shall inform an employee
or job applicant in writing of such positive test result, the consequences
of such results, and the options available to the employee or job
applicant.
(i) The employer shall provide to the employee or job applicant, upon
request, a copy of the test results.
(j) Within 5 working days after receiving notice of a positive
confirmed test result, the employee or job applicant may submit
information to an employer explaining or contesting the test results, and
why the results do not constitute a violation of the employer's policy.
(k) If an employee's or job applicant's explanation or challenge of the

positive test results is unsatisfactory to the employer, a written
explanation as to why the employee's or job applicant's explanation is
unsatisfactory, along with the report of positive results, shall be provided

by the employer to the employee or job applicant; and all such
documentation shall be kept confidential by the employer pursuant to
subsection (8) and shall be retained by the employer for at least 1 year.
(I) No employer may discharge, discipline, refuse to hire, discriminate
against, or request or require rehabilitation of an employee or job
applicant on the sole basis of a positive test result that has not been
verified by a confirmation test.
(m) An employer who performs drug testing or specimen collection
shall use chain-of-custody procedures as established by the Department
of Health and Rehabilitative Services to ensure proper recordkeeping,
handling, labeling, and identification of all specimens to be tested.
(n) An employer shall pay the cost of all drug tests, initial and
confirmation, which he requires of employees.
(o) An employee or job applicant shall pay the costs of any additional
drug tests not required by the employer.
(p) No employer shall discharge, discipline, or discriminate against
an employee solely upon the employee's voluntarily seeking treatment,
while under the employ of the employer, for a drug-related problem if the
employee has not previously tested positive for drug use, entered an
employee assistance program for drug-related problems, or entered an
alcohol and drug rehabilitation program.
(q) If testing is conducted based on reasonable suspicion, the
employer shall promptly detail in writing the circumstances which
formed the basis of the determination that reasonable suspicion existed
to warrant the testing. A copy of this documentation shall be given to the
employee upon request and the original documentation shall be kept
confidential by the employer pursuant to subsection (8) and shall be
retained by the employer for at least 1 year.
(6) CONFIRMATION TESTING.-
(a) If an initial drug test is negative, the employer may in its sole
discretion seek a confirmation test.
(b) Only licensed laboratories as described in subsection (9) shall
conduct confirmation drug tests.
(c) All positive initial tests shall be confirmed using gas
chromatography/mass spectrometry (GC/MS) or an equivalent or more
accurate scientifically accepted method approved by the Department of
Health and Rehabilitative Services as such technology becomes available
in a cost-effective form.
(7) EMPLOYER PROTECTION.-
(a) No employee or job applicant whose drug test result is confirmed
as positive in accordance with the provisions of this section shall, by
"virtue of the result alone, be defined as a person having a "handicap" as
cited in the 1973 Rehabilitation Act.
(b) An employer who discharges or disciplines an employee or refuses
to hire a job applicant in compliance with this section shall be considered
to have discharged, disciplined, or refused to hire for cause.
(c) No physician-patient relationship is created between an employee
or job applicant and an employer or any person performing or evaluating
a drug test, solely by the establishment, implementation, or
administration of a drug testing program.
(d) Nothing in this section shall be construed to prevent an employer
from establishing reasonable work rules related to employee possession,
use, sale, or solicitation of drugs, including convictions for drug-related
offenses, and taking action based upon a violation of any of those rules.
(e) Nothing in this section shall be construed to operate retroactively,
and nothing in this section shall abrogate the right of an employer under
state law to conduct drug tests, or implement employee drug testing
programs, prior to October 1, 1990; however, only those programs that
meet the criteria outlined in this section qualify for reduced rates under
s. 627.0915, Florida Statutes.
(f) If an employee or job applicant refuses to submit to a drug test,
the employer shall not be barred from discharging or disciplining the
employee or from refusing to hire the job applicant. However, nothing in

this paragraph shall abrogate the rights and remedies of the employee or
job applicant as otherwise provided in this section.

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(g) Nothing in this section shall be construed to prohibit an employer
from conducting medical screening or other tests required by any statute,
rule, or regulation for the purpose of monitoring exposure of employees
to toxic or other unhealthy substances in the workplace or in the
performance of job responsibilities. Such screening or tests shall be
limited to the specific substances expressly identified in the applicable
statute, rule, or regulation, unless prior written consent of the employee
is obtained for other tests.
(8) CONFIDENTIALITY.-The provisions of s. 119.07, Florida
Statutes, to the contrary notwithstanding:
(a) All information, interviews, reports, statements, memoranda, and
drug test results, written or otherwise, received by the employer through
a drug testing program are confidential communications and may not be
used or received in evidence, obtained in discovery, or disclosed in any
public or private proceedings, except in accordance with this section or
in determining compensability under this act.
(b) Employers, laboratories, employee assistance programs, drug and
alcohol rehabilitation programs, and their agents who receive or have
access to information concerning drug test results shall keep all
information confidential. Release of such information under any other
circumstance shall be solely pursuant to a written consent form signed
voluntarily by the person tested, unless such release is compelled by a
hearing officer or a court of competent jurisdiction pursuant to an appeal
taken under this section, or unless deemed appropriate by a professional
or occupational licensing board in a related disciplinary proceeding. The
consent form must contain, at a minimum:
1. The name of the person who is authorized to obtain the
information.
2. The purpose of the disclosure.
3. The precise information to be disclosed.
4. The duration of the consent.
5. The signature of the person authorizing release of the information.
(c) Information on drug test results shall not be released or used in
any criminal proceeding against the employee or job applicant.
Information released contrary to this section shall be inadmissible as
evidence in any such criminal proceeding.
(d) Nothing herein shall be construed to prohibit the employer, agent
of the employer, or laboratory conducting a drug test from having access
to employee drug test information when consulting with legal counsel in
connection with actions brought under or related to this section or when
the information is relevant to its defense in a civil or administrative
matter.
(9) DRUG TESTING STANDARDS; LABORATORIES.-
(a) No laboratory may analyze initial or confirmation drug specimens
unless:
1. The laboratory is licensed and approved by the Department of
Health and Rehabilitative Services using criteria established by the
National Institute on Drug Abuse as guidelines for modeling the state
drug testing program pursuant to this section.
2. The laboratory has written procedures to ensure the chain of
custody.
3. The laboratory follows proper quality control procedures,
including, but not limited to:
a. The use of internal quality controls, including the use of samples
of known concentrations which are used to check the performance and
calibration of testing equipment, and periodic use of blind samples for
overall accuracy.
b. An internal review and certification process for drug test results,
conducted by a person qualified to perform that function in the testing
laboratory.
c. Security measures implemented by the testing laboratory to
preclude adulteration of specimens and drug test results.

d. Other necessary and proper actions taken to ensure reliable and
accurate drug test results.

November 2, 1993

weeks" shall be deemed to mean and refer to a constructive period of 13
weeks as a whole, which shall be defined as a consecutive period of 91
days, and the term "during substantially the whole of 13 weeks" shall be
deemed to mean during not less than 90 percent of the total customary
full-time hours of employment within such period considered as a whole.

E OF REPRESENTATIVES 27

(b) A laboratory shall disclose to the employer a written test result
report within 7 working days after receipt of the sample. All laboratory
reports of a drug test result shall, at a minimum, state:
1. The name and address of the laboratory which performed the test
and the positive identification of the person tested.
2. Positive results on confirmation tests only, or negative results, as
applicable.
3. A list of the drugs for which the drug analyses were conducted.
4. The type of tests conducted for both initial and confirmation tests
and the minimum cutoff levels of the tests.
5. Any correlation between medication reported by the employee or
job applicant pursuant to subparagraph (5) (b)2. and a positive confirmed
drug test result.
No report shall disclose the presence or absence of any drug other than
a specific drug and its metabolites listed pursuant to this section.
(c) The laboratory shall submit to the Department of Health and
Rehabilitative Services a monthly report with statistical information
regarding the testing of employees and job applicants. The report shall
include information on the methods of analyses conducted, the drugs
tested for, the number of positive and negative results for both initial and
confirmation tests, and any other information deemed appropriate by the
Department of Health and Rehabilitative Services. No monthly report
shall identify specific employees or job applicants.
(d) Laboratories shall provide technical assistance to the employer,
employee, or job applicant for the purpose of interpreting any positive
confirmed test results which could have been caused by prescription or
nonprescription medication taken by the employee or job applicant.
(10) RULES.-
(a) The department shall adopt rules using rules adopted by the
Department of Health and Rehabilitative Services pursuant to s.
112.0455, Florida Statutes, and criteria established by the National
Institute on Drug Abuse as guidelines for modeling the state drug testing
program, concerning, but not limited to:
1. Standards for drug testing, laboratory licensing, and suspension
and revocation of a license.
2. Body specimens and minimum specimen amounts which are
appropriate for drug testing.
3. Methods of analysis and procedures to ensure reliable drug testing
results, including standards for initial tests and confirmation tests.
4. Minimum cutoff detection levels for drugs or their metabolites for
the purposes of determining a positive test result.
5. Chain-of-custody procedures to ensure proper identification,
labeling, and handling of specimens being tested.
6. Retention, storage, and transportation procedures to ensure
reliable results on confirmation tests and retests.
(b) This section shall not be construed to eliminate the bargainable
rights as provided in the collective bargaining process, if applicable.
Section 25. Determination of pay.-
(1) Except as otherwise provided in this act, the average weekly wages
of the injured employee at the time of the injury shall be taken as the
basis upon which to compute benefits and shall be determined as follows:
(a) If the injured employee has worked in the employment in which
he was working at the time of the injury, whether for the same or another
employer, during substantially the whole of 13 weeks immediately
preceding the injury, his average weekly wage shall be one-thirteenth of
the total amount of wages earned in such employment during the 13
weeks. As used in this paragraph, the term "substantially the whole of 13

28 JOURNAL OF THE HOUSE

(b) If the injured employee has not worked in such employment
during substantially the whole of 13 weeks immediately preceding the
injury, the wages of a similar employee in the same employment who has
worked substantially the whole of such 13 weeks shall be used in making
the determination under the preceding paragraph.
(c) If an employee is a seasonal worker and the foregoing method
cannot be fairly applied in determining the average weekly wage, then the
employee may use, instead of the 13 weeks immediately preceding the
injury, the calendar year or the 52 weeks immediately preceding the
injury. The employee will have the burden of proving that this method
will be more reasonable and fairer than the method set forth in
paragraphs (a) and (b) and, further, must document prior earnings with
W-2 forms, written wage statements, or income tax returns. The employer
shall have 30 days following the receipt of this written proof to adjust the
benefit rate, including the making of any additional payment due for
prior weekly payments, based on the lower rate compensation.
(d) If any of the foregoing methods cannot reasonably and fairly be
applied, the full-time weekly wages of the injured employee shall be used,
except as otherwise provided in paragraph (e) or paragraph (f).
(e) If it is established that the injured employee was under 22 years
of age when injured and that under normal conditions his wages should
be expected to increase during the period of disability, the fact may be
considered in arriving at his average weekly wages.
(f) If it established that the injured employee was a part-time worker
at the time of the injury, that he had adopted part-time employment as
his customary practice, and that under normal working conditions he
probably would have remained a part-time worker during the period of
disability, these factors shall be considered in arriving at his average
weekly wages. For the purpose of this paragraph, the term "part-time
worker" means an individual who customarily works less than the full-
time hours or full-time workweek of a similar employee in the same
employment.
(g) If compensation is due for a fractional part of the week, the
compensation for such fractional part shall be determined by dividing the
weekly compensation rate by the number of days employed per week to
compute the amount due for each day.
(2) If, during the period of disability, the employer continues to
provide consideration, including board, rent, housing, or lodging, the
value of such consideration shall be deducted when calculating the
average weekly wage of the employee, so long as these benefits continue
to be provided.
(3) The department shall establish by rule a form which shall contain
a simplified checklist of those items which may be included as "wage" for
determining the average weekly wage.
Section 26. Coercion of employees.-No employer shall discharge,
threaten to discharge, intimidate, or coerce any employee by reason of
such employee's valid claim for benefits under this act.
Section 27. Benefits; lien against assets.-Benefits shall have the
same preference of lien against the assets of the carrier or employer
without limit of an amount as is now or may hereafter be allowed by law
to the claimant for unpaid wages or otherwise.
Section 28. Misrepresentation; fraudulent activities; penalties.-
(1) Any person who willfully makes any false or misleading statement
or representation for the purpose of obtaining or denying any benefit or
payment under this act:
(a) Who presents or causes to be presented any written or oral
statement as part of, or in support of, a claim for payment or other benefit
pursuant to any provision of this act, knowing that such statement
contains any false or misleading information concerning any fact or thing
material to such claim; or
(b) Who prepares or makes any written or oral statement that is

intended to be presented to any employer, insurance company, or self-
insured program in connection with, or in support of, any claim for
payment or other benefit pursuant to any provision of this act, knowing
that such statement contains any false or misleading information
concerning any fact or thing material to such claim,

I]

E OF REPRESENTATIVES November 2, 1993

commits a felony of the third degree, punishable as provided in s. 775.082,
Florida Statutes, s. 775.083, Florida Statutes, or s. 775.084, Florida
Statutes.
(2) (a) All claims forms as provided for in this act shall contain a
notice that clearly states in substance the following: "Any person who,
knowingly and with intent to injure, defraud, or deceive any employer or
employee, insurance company, or self-insured program, files a statement
of claim containing any false or misleading information, commits a felony
of the third degree."
(b)l. Any physician licensed under chapter 458, Florida Statutes,
osteopath licensed under chapter 459, Florida Statutes, chiropractor
licensed under chapter 460, Florida Statutes, or any other practitioner
licensed under the laws of this state who knowingly and willfully assists,
conspires with, or urges any person to fraudulently violate any of the
provisions of this act, or any person who, due to such assistance,
conspiracy, or urging by said physician, osteopath, chiropractor, or
practitioner, knowingly and willfully benefits from the proceeds derived
from the use of such fraud, commits a felony of the third degree,
punishable as provided in s. 775.082, Florida Statutes, s. 775.083, Florida
Statutes, or s. 775.084, Florida Statutes. In the event that a physician,
osteopath, chiropractor, or other practitioner is adjudicated guilty of a
violation of this subparagraph, the Board of Medicine as set forth in
chapter 458, Florida Statutes, the Board of Osteopathic Medicine as set
forth in chapter 459, Florida Statutes, the Board of Chiropractic as set
forth in chapter 460, Florida Statutes, or other appropriate licensing
authority, whichever is appropriate, shall hold an administrative hearing
to consider the imposition of administrative sanctions as provided by law
against said physician, osteopath, chiropractor, or other practitioner.
2. Any attorney who knowingly and willfully assists, conspires with,
or urges any claimant to fraudulently violate any of the provisions of this
act, or any person who, due to such assistance, conspiracy, or urging on
such attorney's part, knowingly and willfully benefits from the proceeds
derived from the use of such fraud, commits a felony of the third degree,
punishable as provided in s. 775.082, Florida Statutes, s. 775.083, Florida
Statutes, or s. 775.084, Florida Statutes.
3. No person or governmental unit licensed under chapter 395,
Florida Statutes, to maintain or operate a hospital, and no administrator
or employee of any such hospital, shall knowingly and willfully allow the
use of the facilities of such hospital by any person in a scheme or
conspiracy to fraudulently violate any of the provisions of this act. Any
hospital administrator or employee who violates this subparagraph
commits a felony of the third degree, punishable as provided in s. 775.082,
Florida Statutes, s. 775.083, Florida Statutes, or s. 775.084, Florida
Statutes. Any adjudication of guilt for a violation of this subparagraph,
or the use of business practices demonstrating a pattern indicating that
the spirit of the law set forth in this act is not being followed, shall be
grounds for suspension or revocation of the license to operate the hospital
or the imposition of an administrative penalty of up to $5,000 by the
licensing agency as set forth in chapter 395, Florida Statutes.
(c) Any person damaged as a result of a violation of any provision of
this subsection, when there has been a criminal adjudication of guilt,
shall have a cause of action to recover treble compensatory damages, plus
all reasonable investigation and litigation expenses, including attorney's
fees at the trial and appellate courts.
(d) For the purposes of this subsection, the term "statement" includes,
but is not limited to, any notice, statement, proof of injury, bill for
services, diagnosis, prescription, hospital or doctor records, X-ray, test
result, or other evidence of loss, injury, or expense.
(e) The provisions of this subsection shall also apply with respect to
any employer, insurer, self-insurer, adjusting firm, or agent or
representative thereof who intentionally injures, defrauds, or deceives
any claimant with regard to any claim. Such claimant shall have the right
to recover the damages provided in this subsection.

Section 29. Security for benefits; insurance carriers and self-
insurers.-
(1) Every employer shall secure the payment of benefits under this
act:

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(a) By insuring and keeping insured the payment of such benefits
with any stock company or mutual company or association or exchange,
authorized to do business in the state;
(b) By furnishing satisfactory proof to the department of his financial
ability to pay such benefits and receiving an authorization from the
department to pay such benefits directly in accordance with the following
provisions:
1. The department may, as a condition to such authorization, require
such employer to deposit in a depository designated by the department
either an indemnity bond or securities, at the option of the employer, of
a kind and in an amount determined by the department and subject to
such conditions as the department may prescribe, which shall include
authorization to the department in the case of default to sell any such
securities sufficient to pay awards of benefits or to bring suit upon such
bonds, to procure prompt payment of benefits under this act. In addition,
the department shall require, as a condition to authorization to self-
insure, proof that the employer has provided for competent personnel
with whom to deliver benefits and to provide a safe working environment.
Further, the department shall require such employer to carry reinsurance
at levels that will ensure the actuarial soundness of such employer in
accordance with rules adopted by the department. The department may
by rule require that, in the event of an individual self-insurer's
insolvency, such indemnity bonds, securities, and reinsurance policies
shall be payable to the appropriate guaranty fund. Any employer
securing benefits in accordance with the provisions of this paragraph
shall be known as a self-insurer and shall be classed as a carrier of his own
insurance.
2. If the employer fails to maintain the foregoing requirements, the
department shall revoke the employer's authority to self-insure, unless
the employer provides to the department the certified opinion of an
independent actuary who is a member of the American Society of
Actuaries as to the actuarial present value of the employer's determined
and estimated future benefit payments based on cash reserves, using a 4-
percent discount rate, and a qualifying security deposit equal to 1.5 times
the value so certified. The employer shall thereafter annually provide
such a certified opinion until such time as the employer meets the
requirements of subparagraph 1. The qualifying security deposit shall be
adjusted at the time of each such annual report. Upon the failure of the
employer to timely provide such opinion or to timely provide a security
deposit in an amount equal to 1.5 times the value certified in the latest
opinion, the department shall then revoke such employer's authorization
to self-insure, and such failure shall be deemed to constitute an
immediate serious danger to the public health, safety, or welfare
sufficient to justify the summary suspension of the employer's
authorization to self-insure pursuant to s. 120.68, Florida Statutes.
3. Upon the suspension or revocation of the employer's authorization
to self-insure, the employer shall provide to the department the certified
opinion of an independent actuary who is a member of the American
Society of Actuaries of the actuarial present value of the determined and
estimated future benefit payments of the employer for claims incurred
while the member exercised the privilege of self-insurance, using a
discount rate of 4 percent. The employer shall provide such an opinion
at 6-month intervals thereafter until such time as the latest opinion
shows no remaining value of claims. With each such opinion, the
employer shall deposit with the department a qualifying security deposit
in an amount equal to the value certified by the actuary. The department
has a cause of action against an employer, and against any successor of
the employer, who fails to timely provide such opinion or who fails to
timely maintain the required security deposit with the department. The
department shall recover a judgment in the amount of the actuarial
present value of the determined and estimated future compensation
payments of the employer for claims incurred while the employer
exercised the privilege of self-insurance, together with attorney's fees. For
purposes of this section, the successor of an employer means any person,
business entity, or group of persons or business entities, which holds or
acquires legal or beneficial title to the majority of the assets or the
majority of the shares of the employer.

4. A qualifying security deposit shall consist, at the option of the
employer, of:

November 2, 1993

act, and at the same time such injured employee or his dependents or
personal representatives may pursue his remedy by action at law or
otherwise against such third-party tortfeasor. However, any benefits paid
shall be deducted from any claim for damages before the determination
of liability of the tortfeasor.

E OF REPRESENTATIVES 29

a. Surety bonds, in a form and containing such terms as prescribed by
the department, issued by a corporation surety authorized to transact
surety business by the department, and whose policyholders' and
financial ratings, as reported in A.M. Best's Insurance Reports, Property-
Liability, are not less than "A" and "V," respectively.
b. Certificates of deposit with financial institutions, the deposits of
which are insured through the Federal Deposit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation.
c. Irrevocable letters of credit in favor of the department issued by
financial institutions described in sub-subparagraph b.
d. Direct obligations of the United States Treasury backed by the full
faith and credit of the United States.
e. Securities issued by this state and backed by the full faith and
credit of this state.
5. The qualifying security deposit shall be held by the department, or
by a depository authorized by the department, exclusively for the benefit
claimants under this act. The security shall not be subject to assignment,
execution, attachment, or any legal process whatsoever, except as
necessary to guarantee the payment of benefits under this act. No surety
bond may be terminated, and no other qualifying security may be allowed
to lapse, without 90 days' prior notice to the department and deposit by
the self-insuring employer of other qualifying security of equal value
within 10 business days after such notice. Failure to provide such notice
or failure to timely provide qualifying replacement security after such
notice shall constitute grounds for the department to call or sue upon the
surety bond, or to act with respect to other pledged security in any
manner necessary to preserve its value for the purposes intended by this
section, including the exercise of rights under a letter of credit, the sale
of any security at then-prevailing market rates, or the withdrawal of any
funds represented by any certificate of deposit forming part of the
qualifying security deposit;
(c) By entering into a contract with a public utility under an
approved utility-provided self-insurance program, as set forth in section
35 of this act. The department shall adopt rules to implement this
paragraph;
(d) By entering into an interlocal agreement with other local
governmental entities to create a local government pool pursuant to
section 36 of this act;
(e) By entering into a contract with an individual self-insurer under
an approved individual self-insurer-provided self-insurance program as
set forth in section 35 of this act. The department may adopt rules to
implement this subsection.
(2) (a) The department shall adopt rules by which businesses may
become qualified to provide underwriting claims-adjusting, loss control,
and safety engineering services to self-insurers.
(b) The department shall adopt rules requiring self-insurers to file
any reports necessary to fulfill the requirements of this act. Any self-
insurer who fails to file any report as prescribed by the rules adopted by
the department shall be subject to a civil penalty not to exceed $1,000 for
each such failure.
(3) The state and its boards, bureaus, departments, and agencies and
all of its political subdivisions which employ labor shall be deemed self-
insurers under the terms of this act, unless they elect to procure and
maintain insurance to secure the benefits of this act to their employees;
and they are hereby authorized to pay the premiums for such insurance.
Section 30. Compensation for injuries when third persons are
liable.-
(1) If an employee, subject to the provisions of this act, is injured or
killed in the course of his employment by the negligence or wrongful act
of a third-party tortfeasor, such injured employee or, in the case of his
death, his dependents may accept benefits under the provisions of this

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(2) There is no right of subrogation for benefits paid under this act.
Section 31. Benefits notice.-Every employer who has secured
benefits under the provisions of this act shall keep posted in a
conspicuous place or places, in and about his place or places of business,
typewritten or printed notices, in accordance with a form prescribed by
the department, stating that such employer has secured the payment of
benefits in accordance with the provisions of this act. Such notices shall
contain the name and address of the carrier, if any, with whom the
employer has secured payment of benefits and the date of the expiration
of the policy.
Section 32. Effect of unconstitutionality.-If any part of this act is
adjudged unconstitutional by the courts, and such adjudication has the
effect of invalidating any payment of benefits under this act, the period
intervening between the time the injury was sustained and the time of
such adjudication shall not be computed as a part of the time prescribed
by law for the commencement of any action against the employer in
respect of such injury; but the amount of any benefits paid under this act
on account of such injury shall be deducted from the amount of damages
awarded in such action in respect of such injury.
Section 33. Proceedings against state.-Any person entitled to
benefits by reason of the injury or death of an employee of the state, its
boards, bureaus, departments, agencies, or subdivisions employing labor,
may maintain proceedings and actions at law against the state, its boards,
bureaus, departments, agencies, and subdivisions, for such benefit, said
proceedings and action at law to be in the same manner as provided
herein with respect to other employers.
Section 34. Pooling liabilities.-
(1) The department shall adopt rules permitting two or more
employers to enter into agreements to pool their liabilities under this act
for the purpose of qualifying as a group self-insurer's fund, which shall
be classified as a self-insurer, and each employer member of such
approved group shall be known as a group self-insurer's fund member and
shall be classified as a self-insurer, as defined in this act.
(2) The department shall adopt rules:
(a) Requiring monetary reserves to be maintained by such self-
insurers to insure their financial solvency; and
(b) Governing their organization and operation to assure compliance
with such requirements.
(3) The department shall adopt rules implementing the reserve
requirements in accordance with accepted actuarial techniques.
(4) Any self-insurer established under this section, except for self-
insurers which are state or local governmental entities, shall be required
to carry reinsurance in accordance with rules adopted by the department.
(5) No dividend or premium refund of any self-insurer established
under this section, otherwise earned, shall be made contingent upon
continued membership in the fund, renewal of any policy, or the payment
of renewal premiums for membership in the fund or on any policy issued
by such self-insurer. Prior to making any dividend or premium refund, the
group self-insurer shall submit to the department the following
information:
(a) An audited certified financial statement.
(b) An annual report of financial condition.
(c) A loss reserve review by a qualified actuary.
The required information listed in paragraphs (a)-(c) shall be submitted
annually, no later than 7 months after the end of the group self-insurer's
fund year. No request for such dividend or premium refund may be made
prior to the filing of the required information. The request for such
dividend or premium refund shall include a resolution of the board of
trustees of the group self-insurer requesting approval of a specific amount
to be distributed. Any dividend, premium refund, or premium discount
or credit shall in no manner discriminate on the basis of continued
coverage or continued membership in the group self-insurer. The
department shall review such request and shall issue a decision within 60

days of the filing. Failure to issue a decision within 60 days shall
constitute an approval of such request. Any dividend or premium refund

approved by the department for distribution which cannot be paid to the
applicable member or policyholder or former member or policyholder of
the group self-insurer because the former member or policyholder cannot
be reasonably located shall become the property of the group self-insurer.
(6) The department may impose civil penalties, not to exceed $1,000
per occurrence, for violations of the provisions of this act or rules adopted
pursuant hereto.
(7) Premiums, contributions, and assessments received by a group
self-insurer's fund are subject to ss. 624.509(1) and (2) and 624.5092,
Florida Statutes, except that the tax rate shall be 1.6 percent of the gross
amount of such premiums, contributions, and assessments.
(8) This section does not apply to any program, intergovernmental
agreement, cooperative effort, consortium, or agency through which two
or more governmental entities, without pooling their liabilities,
administer the payment of workers' compensation to their respective
employees.
Section 35. Self-insured public utilities.-A self-insured public
utility, as authorized by paragraph (1)(b) of section 29 of this act, may
assume by contract the liabilities under this act of contractors and
subcontractors, or each of them, employed by or on behalf of such public
utility when performing work on or adjacent to property owned or used
by the public utility.
Section 36. Local government pools.-
(1) Any two or more local governmental entities may enter into
interlocal agreements for the purpose of securing the payment of benefits
under this act, provided the local government pool that is created must:
(a) Maintain a continuing program of excess insurance coverage and
reserve evaluation to protect the financial stability of the fund in an
amount and manner determined by a qualified and independent actuary.
(b) Submit annually an audited fiscal year-end financial statement
by an independent certified public accountant within 6 months after the
end of the fiscal year to the department.
(c) Have a governing body which is comprised entirely of local elected
officials.
(2) A local government pool that meets the requirements of this
section is not subject to the provisions of section 34 of this act and is not
required to file any report with the department pursuant to paragraph
(2) (b) of section 29 of this act, which is uniquely required of group self-
insurer funds qualified under section 30 of this act. If any of the
requirements of this section are not met, the local government pool is
subject to the requirements of section 34 of this act.
Section 37. Administrative procedure; rulemaking authority.-The
department shall have the authority to adopt rules to govern the
performance of any programs, duties, or responsibilities with which it is
charged under this act. (renumber subsequent sections)
and the title is amended as follows:
On page 1, line 2, after the semicolon, insert: creating the "Florida No-
fault Workers' Compensation and Employer Liability Act"; providing a
short title; providing legislative intent; authorizing election of provisions
of the act in lieu of application of chapter 440, F.S.; providing for notice
of election; providing for revocation of election; providing for notice to
employees; providing definitions; specifying benefits payable to employees;
providing criteria; providing for certain periodic medical evaluations;
specifying accidental death and dismemberment insurance coverage;
requiring continuation of coverage for employees under certain
circumstances; specifying employer duties to employees; providing for
employer's defenses; providing for coworker immunity; providing for
notice of claims; limiting certain defenses by employers under certain
circumstances; specifying procedures for filing and responding to claims;
limiting expert witness testimony under certain circumstances; providing
for determination of comparative negligence under certain circumstances;
authorizing the Department of Insurance to adopt rules requiring proof of
insurance or financial responsibility; providing for implementation and
administration with reference to certain provisions of the Workers'

Compensation Law relating to waiver of exemption, notice of exemption
or acceptance, and waiver of exemption or acceptance, coverage, specified

30

November 2, 1993

JOURNAL OF THE HOUSI

activities within the course of employment, legislative intent regarding
drug-free workplaces, criteria for a drug-free workplace program,
determination of pay, coercion of employees, benefits as lien against assets,
misrepresentation, fraudulent activities, security for benefits,
compensation for injuries when third parties are liable, benefits notice,
effect of unconstitutionality, proceedings against the state, pooling
liabilities, self-insured public utilities, local government pools,
administrative procedures, rulemaking, and coverage; providing
application to the Department of Insurance; authorizing the department
to adopt rules; providing penalties;
Rep. Warner moved the adoption of the amendment, which failed of
adoption.
Representatives) Warner, Safley and Benson offered the following
amendment:
Amendment 13-On page 13, line 25, insert:
Section 1. (1) Election.-Notwithstanding the provisions of chapter
440, Florida Statutes, or any other provision of the laws of this state, any
employer may elect not to be bound by the provisions of chapter 440,
Florida Statutes. Any employer who elects not to be bound by the
provisions of chapter 440, Florida Statutes, shall notify all of his or her
employees and the Department of Insurance of such election. Any
employer who elects not to be bound by the provisions of chapter 440,
Florida Statutes, shall be bound by the provisions of this section.
(2) Employer's duties to employees.-Every employer is responsible
for its employee's injuries and illnesses, arising out of and in the course
of employment, which are the fault of the employer. Regarding fault,
every employer has a duty to its employees to provide:
(a) A safe workplace.
(b) Sufficient coworkers to do the work.
(c) Safe and sufficient tools and equipment, unless such tools and
equipment are to be provided by the employee under the terms of
employment.
(d) Adequate safety instruction and warnings of dangers in the
workplace.
(e) Selection, training, and supervision of competent coworkers.
(3) Employer's defenses.-In response to any claim filed by an
employee, an employer may not raise the defenses of assumption of risk,
contributory negligence, or injury caused by a fellow servant. However,
employers may raise the defenses of comparative negligence; intentional
act of the employee to inflict self-injury; intentional act of a coemployee
to injure the employee, unless there is an independent act of negligence
on the part of the employer; or substance abuse or intoxication on the part
of the employee, which contributes to the loss, injury, or illness.
(4) Coworker immunity.-Except in the case of intentional acts to
injure, coworkers are immune from suits for injuries caused to fellow
employees, and the liability of an employer shall not be reduced by a
coworker's percentage of fault. (renumber subsequent sections)
and the title is amended as follows:
On page 1, line 2, after the semicolon, insert: authorizing employers to
elect not to be bound by the provisions of chapter 440, F.S.; providing for
notice of election; providing for application under such election; specifying
employer duties to employees; providing for employer's defenses; providing
for coworker immunity;
Rep. Warner moved the adoption of the amendment.
On motion by Rep. Safley, under Rule 11.1, the following late-filed
amendment to the amendment was considered.
Representatives) Safley offered the following amendment to the
amendment:
Amendment 1 to Amendment 13-On page 1, line 14, after the word
"employer" insert: upon proof of financial responsibility in accordance
with rules established by the Department of Insurance,

Rep. Warner moved the adoption of the amendment to the amendment,
which failed of adoption.

November 2, 1993

Rep. Thomas moved the adoption of the amendment to the amendment,
which was adopted.
The question recurred on the adoption of Amendment 17, as amended,
which was adopted.

E OF REPRESENTATIVES 31

The question recurred on the adoption of Amendment 13, which failed
of adoption.
Representatives Martinez and Logan offered the following amendment:
Amendment 14-On page 13, line 26, through page 14, line 8, strike
all of said lines and renumber subsequent sections
and the title is amended as follows:
On page 1, lines 3-8, strike all of said lines and insert: creating
Rep. Martinez moved the adoption of the amendment, which failed of
adoption.
Representatives Martinez, Logan and Trammell offered the following
amendment:
Amendment 15-On page 14, between lines 8 and 9, insert:
Section 2. Subsection (5) is added to section 27.54, Florida Statutes, to
read:
27.54 Expenditures for public defender's office.-
(5) The Insurance Commissioner shall contract with the public
defender of any judicial circuit of the state for the defense of criminal
violations of the Workers' Compensation Law and related crimes,
pursuant to s. 27.52. The Insurance Commissioner shall contribute funds
for such purposes and such funds may be used for the salaries, training,
expenses, and administrative costs of one or more assistant public
defenders used in the defense of such crimes. (renumber subsequent
sections)
and the title is amended as follows:
On page 1, line 8, after the semicolon insert: amending s. 27.54, F.S.;
requiring the Insurance Commissioner to contract with public defenders
to defend certain criminal violations and to contribute funds to pay salaries
and expenses of certain assistant public defenders;
Rep. Martinez moved the adoption of the amendment, which failed of
adoption.
Representatives) Safley and Warner offered the following amendment:
Amendment 16-On page 13, line 25, strike everything after the
enacting clause and insert:
Section 1. Chapter 440, Florida Statutes, is hereby repealed.
Section 2. This act shall take effect upon becoming a law.
and the title is amended as follows:
On page 1, line 3, through page 13, line 23, strike all of said lines and
insert: repealing chapter 440, F.S., relating to workers' compensation;
providing an effective date.
Rep. Safley moved the adoption of the amendment, which failed of
adoption.
Representatives) Thomas and McMahan offered the following
amendment:
Amendment 17-On page 80, lines 25 and 26, strike all of said lines
and insert: physician to either complete an attestation that he has
reviewed appropriate materials supplied by the department or
demonstrate proof of completion of a minimum 5-hour course, which may
be by correspondence, which covers the subject areas of cost
Rep. Thomas moved the adoption of the amendment.
On motion by Rep. Thomas, under Rule 11.1, the following late-filed
amendment to the amendment was considered.
Representatives) Thomas offered the following amendment to the
amendment:
Amendment 1 to Amendment 17-On page 1, lines 14 and 15, strike
all of said lines and insert: physician to

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Representatives) Boyd offered the following amendment:
Amendment 18-On page 68, between lines 5 and 6, insert:
Section 1. Section 440.1051, Florida Statutes, is created to read:
440.1051 Fraud reports; civil immunity; criminal penalties.-
(1) The Bureau of Workers' Compensation Insurance Fraud of the
Division of Insurance Fraud of the Department of Insurance shall establish
a toll-free telephone number to receive reports of workers' compensation
fraud committed by an employee, employer, insurance provider, physician,
attorney, or other person.
(2) Any person who reports workers' compensation fraud to the
division under subsection (1) is immune from civil liability for doing so, and
the person or entity alleged to have committed the fraud may not retaliate
against him for providing such report, unless the person making the report
knows it to be false.
(3) A person who calls and, knowingly and falsely, reports workers'
compensation fraud or who, in violation of subsection (2) retaliates against
a person for making such report, is guilty of a misdemeanor of the first
degree, punishable as provided in s. 775.082 or s. 775.083, or both.
(renumber subsequent sections)
and the title is amended as follows:
On page 3, line 2, after "penalty;" insert: creating s. 440.0151, F.S.;
requiring that the Bureau of Workers' Compensation Insurance Fraud of
the Division of Insurance Fraud of the Department of Insurance establish
a toll-free telephone number to receive reports of workers' compensation
fraud; providing civil immunity for persons who make such a report;
providing criminal penalties;
Rep. Lippman moved the adoption of the amendment, which was
adopted.
On motion by Rep. Buddy Johnson, under Rule 11.1, the following late-
filed amendment was considered.
Representatives) Buddy Johnson, Bitner, Feeney and Webster offered
the following amendment:
Amendment 19-On page 285, between lines 24 and 25, insert:
Section 107. If the revisions to chapter 440, Florida Statutes, made by
this act do not result in a net reduction of at least 20 percent of the 1993
workers' compensation insurance premium rates by the adjournment sine
die of the 1995 Regular Session of the Legislature, chapter 440, Florida
Statutes, shall be repealed on the date of such adjournment. (renumber
subsequent sections)
and the title is amended as follows:
On page 11, line 29, after the semicolon insert: providing for future repeal
of chapter 440, F.S., under certain circumstances;
Rep. Buddy Johnson moved the adoption of the amendment.
Rep. Kelly suggested the absence of a quorum. A quorum was present.
The question recurred on the adoption of Amendment 19, which failed
of adoption. The vote was:
Yeas-48

Albright
Arnall
Bainter
Benson
Bitner
Bronson
Casey
Constantine
Couch
Crist
De Grandy
Feeney
Nays-59

Fuller
Gay
Hanson
Harris
Hawkes
Hawkins
Ireland
Johnson, Buddy
Jones
King
Laurent
Littlefield

The Chair Arnold
Abrams Ascherl

Manrique
McClure
McMahan
Merchant
Minton
Morroni
Morse
Mortham
Ogles
Posey
Pruitt
Safley

Bloom
Boyd

Sanderson
Saunders, D.
Sembler
Starks
Sublette
Thomas
Thrasher
Valdes
Villalobos
Warner
Webster
Wise

Brennan
Brown

Burke
Charles
Chestnut
Clemons
Cosgrove
Crady
Davis
Dawson
Edwards
Eggelletion
Feren
Geller
Glickman

Gordon
Greene
Hafner
Healey
Hill
Jacobs
Jamerson
Kelly
Lawson
Lippman
Logan
Long
Mackenzie

Mackey
Martinez
McAndrews
Miller
Mishkin
Mitchell
Peeples
Rayson
Reddick
Ritchie
Roberts
Rudd
Rush

Saunders, R.
Schultz
Shepard
Sindler
Smith
Stabins
Stafford
Tedder
Tobin
Trammell
Upchurch
Wallace

Votes after roll call:
Yeas-Futch, Kerrigan
Nays-Klein
Nays to Yeas-Stabins
Representatives) Crady and Kelly offered the following amendment:
Amendment 20-On page 170, line 28, strike "Insurance" and insert:
Labor and Employment Security
Rep. Crady moved the adoption of the amendment. Subsequently,
Amendment 20 was withdrawn.
On motion by Reps. Mortham and Webster, the rules were waived by the
required two-thirds vote and CS/HBs 85-C, 99-C, 15-C, 13-C & 23-C, as
amended, was read the third time by title. On passage, the vote was:
Yeas-107

The Chair
Abrams
Albright
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
Nays-6
Gay
Hanson

De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Geller
Glickman
Gordon
Greene
Hafner
Harris
Hawkes
Hawkins
Healey
Hill
Ireland,
Jacobs
Jamerson
Jones
Kelly
Kerrigan
King
Klein
Laurent

Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

Johnson, Buddy Safley
Merchant

Rojas
Rudd
Rush
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Thrasher

So the bill passed, as amended, and was immediately certified to the
Senate after engrossment.

HB 89-C-A bill to be entitled An act relating to trust funds; creating
the Workers' Compensation Small Employer Self-Insurance Trust Fund
within the State Treasury; providing for annual appropriation of moneys
from the Workers' Compensation Administration Trust Fund to the
Workers' Compensation Small Employer Self-Insurance Trust Fund for
certain purposes; providing for future review and termination or re-
creation of the fund; providing an appropriation; providing a contingent
effective date.

November 2, 1993

32

JOURNAL OF THE HOUSE OF REPRESENTATIVES

-was read the second time by title.
The Committee on Appropriations offered the following amendment:
Amendment 1-On page 1, lines 20-24, strike all of said lines and
insert: Compensation Administration Trust Fund, to provide workers'
compensation coverage at a competitive price to small employers.
Rep. Mackey moved the adoption of the amendment, which was
adopted.
The Committee on Appropriations offered the following amendment:
Amendment 2-On page 1, line 27, strike "1998" and insert: 1997
Rep. Mackey moved the adoption of the amendment, which was
adopted.
The Committee on Appropriations offered the following amendment:
Amendment 3-On page 2, line 21, strike "$41,268" and insert:
$1,500,000
Rep. Mackey moved the adoption of the amendment, which was
adopted.
The Committee on Appropriations offered the following amendment:
Amendment 4-On page 2, line 24, strike ", and one full-time position
is authorized"
Rep. Mackey moved the adoption of the amendment, which was
adopted.
The Committee on Appropriations offered the following amendment:
Amendment 5-On page 2, line 28, after "HB" insert: 85C
Rep. Mackey moved the adoption of the amendment, which was
adopted.
On motion by Rep. Mackey, the rules were waived by the required two-
thirds vote and HB 89-C, as amended, was read the third time by title. On
passage, the vote was:
Yeas-112

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy
Dennis

Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent

Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Nays-None
Votes after roll call:
Yeas-Ascherl, Bainter
So the bill passed, as amended, by the required constitutional three-
fifths vote of the membership and was immediately certified to the Senate
after engrossment.

Introduction and Reference

By the Committee on Appropriations; Representative Long-
HB 111-C-A bill to be entitled An act relating to trust funds; creating
the Florida Group Self-Insurer's Guaranty Fund, to be administered by the
Florida Group Self-Insurer's Guaranty Fund Association; providing a
contingent effective date.
-was read the first time by title. On motions by Rep. Mackey, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title and the third time by title. On passage, the vote was:
Yeas-113

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy

Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Gordon
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent

Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Ritchie
Roberts
Rojas
Rudd

Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Nays-None
So the bill passed by the required constitutional three-fifths vote of the
membership and was immediately certified to the Senate.

Continuation of Special and Continuing Orders

By the Committees on Appropriations; Criminal Justice;
Representatives Martinez, Logan, Ritchie, Feren, Mackenzie, Arnall,
Rayson, Jamerson, Armesto-Garcia and Bloom-
CS/CS/HB 91-C-A bill to be entitled An act relating to weapons and
firearms; amending s. 790.17, F.S.; prohibiting certain transfer to a minor
of a weapon, or electric weapon or device; prohibiting sale or transfer to a
minor of a firearm and providing that a violation constitutes a third-degree
felony; amending s. 790.175, F.S.; redefining the term "minor"; requiring
that the purchaser of a firearm or dangerous weapon be informed that it
is unlawful to store or leave a firearm or dangerous weapon within access
of a minor or to knowingly sell or transfer a firearm or other dangerous
weapon to a minor or a person of unsound mind; amending s. 790.18, F.S.;
prohibiting an arms dealer from selling or transferring a firearm or certain
other weapons to a minor; increasing the penalty for a violation from a
misdemeanor to a felony; amending s. 790.22, F.S.; requiring parental
consent for minors to use certain guns or electric weapons or devices;
increasing penalties for a violation by an adult; providing penalties for a
violation by a minor; prohibiting a minor from possessing a firearm;
providing certain exceptions; prohibiting adults responsible for a minor
from knowingly permitting the minor to unlawfully possess a firearm;
providing penalties for a violation by an adult; providing penalties for a
violation by a minor; providing for the seizure and disposal of a firearm or
certain guns or electric weapons or devices that are used or possessed

November 2, 1993

33

JOURNAL OF THE HOUSE OF REPRESENTATIVES

unlawfully by a minor; providing that such provisions are supplemental to
certain other criminal sanctions; providing for the secure detention of a
minor charged with a violation of certain provisions of ch. 790, F.S.,
pending a court hearing; amending s. 790.23, F.S.; prohibiting felons, and
juveniles found to have committed a delinquent act that would be a felony
if committed by an adult, from using or possessing a weapon or firearm
under certain conditions; providing exceptions; providing penalties;
amending s. 790.25, F.S.; limiting authorization for possession in private
conveyance to persons over 18; providing appropriations; providing an
effective date.
-was read the first time by title. On motion by Rep. Martinez, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title.

THE SPEAKER PRO TEMPORE IN THE CHAIR
Representatives) Couch and Crist offered the following amendment:
Amendment 1-On page 7, between lines 28 and 29, insert:
(c) For a third or subsequent violation of this section, or for any
commission of a felony offense during which the minor used a firearm, the
minor shall be prosecuted as an adult.
and the title is amended as follows:
On page 1, line 31, after "minor" insert: and providing enhanced penalties
Rep. Couch moved the adoption of the amendment.
Point of Order
Rep. Geller raised a point of order that the amendment was not within
the purview of the Call.
Further consideration of Amendment 1, with pending point of order, was
temporarily deferred.

THE SPEAKER IN THE CHAIR
Representative Hanson offered the following amendment:
Amendment 2-On page 2, line 19, insert:
WHEREAS, the love affair between juveniles and firearms has reached
an all high time here in Florida, and
WHEREAS, the courts, the Legislature, and law enforcement cannot be
the sole solution to stem our rising juvenile crime statistics, and
WHEREAS, it is the will of the Legislature and all Floridians that
parental involvement, accountability and responsibility become the key to
solving our existing broken down juvenile criminal justice system, and
WHEREAS, it is the will of Floridians all across this great state of ours
that juveniles who violate laws pertaining to the illegal use of firearms be
dealt with in a swift and certain and severe manner, and
WHEREAS, it is time for the Governor, the President of the Senate, and
the Speaker of the House of Representatives, along with the Republican
leaders of the Senate and House of Representatives, to seek relief from our
counterparts in the United States Congress by cutting the federal
mandated ties that bind us from curing our juvenile crime problems here
at home, as said laws prevent us from using stricter, harsher and more
certain penalties in detaining Florida's juveniles, NOW, THEREFORE,
On motions by Rep. Hanson, the amendment was read in full and
adopted.
On motion by Rep. Sembler, under Rule 11.1, the following late-filed
amendment was considered.
Representatives) Sembler offered the following amendment:
Amendment 3-On page 5, line 22, through page 7, line 30, strike all
of said lines and insert:

(3)
(a)
1.
2.

A minor under 18 years of age may not possess a firearm unless:
The minor is engaged in a lawful hunting activity and is:
At least 16 years of age; or
Under 16 years of age and supervised by an adult.

(b) The minor is engaged in a lawful marksmanship competition or
practice and is:
1. At least 16 years of age; or
2. Under 16 years of age and supervised by adult who is acting with
the consent of the minor's parent or guardian.
(c) The firearm is unloaded and is being transported by the minor
directly to or from an event authorized in paragraph (a) or paragraph (b),
and with the consent of the minor's parent or guardian for a purpose
authorized in this subsection.
(4) Any parent or guardian of a minor, or other adult responsible for
the welfare of a minor, who knowingly permits the minor to possess a
firearm in violation of subsection (3) commits a felony of the third degree,
punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
(5) A minor who violates subsection (3) commits a misdemeanor of the
first degree, and may, in addition to any other penalty provided by law:
(a) Be required to perform up to 100 hours of community service, and:
1. If the minor is eligible by reason of age for a driver's license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to revoke or to withhold issuance of the
minor's driver's license or driving privilege for up to 1 year.
2. If the minor's driver's license or driving privilege is under
suspension or revocation for any reason, the court shall direct the
Department of Highway Safety and Motor Vehicles to extend the period
of suspension or revocation by an additional period of up to 1 year.
3. If the minor is ineligible by reason of age for a driver's license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver's
license or driving privilege for up to 1 year after the date on which the
minor would otherwise have become eligible.
(b) For a second or subsequent offense, the minor may be required to
perform up to 250 hours of community service, and:
1. If the minor is eligible by reason of age for a driver's license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to revoke or to withhold issuance of the
minor's driver's license or driving privilege for up to 2 years.
2. If the minor's driver's license or driving privilege is under
suspension or revocation for any reason, the court shall direct the
Department of Highway Safety and Motor Vehicles to extend the period
of suspension or revocation by an additional period of up to 2 years.
3. If the minor is ineligible by reason of age for a driver's license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver's
license or driving privilege for up to 2 years after the date on which the
minor would otherwise have become eligible.
(6) Any firearm that is possessed or used by a
Rep. Sembler moved the adoption of the amendment.
Further consideration of Amendment 3 was temporarily deferred.
Representatives) Hanson offered the following amendment:
Amendment 4-On page 7, between lines 28 and 29, insert:
(c) For a third or subsequent offense, the vehicle of the minor, or, if
the minor does not own a vehicle, the vehicle or vehicles owned by the
minor's parent or parents shall be confiscated and held by law
enforcement for a 30-day period.
and the title is amended as follows:
On page 2, line 3, after the semicolon, insert: authorizing confiscation of
vehicle in certain circumstances;
Rep. Hanson moved the adoption of the amendment. Subsequently,
Amendment 4 was withdrawn.
Representatives) Hanson offered the following amendment:

Amendment 5-On page 6, lines 15-19, strike all of said lines and
insert:

34

November 2, 1993

JOURNAL OF THE HOUSI

(5) (a) Any parent or guardian of a minor, or other adult responsible
for the welfare of a minor, who knowingly permits the minor to possess
a firearm in violation of subsection (4) commits a felony of the third
degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
(b) Any parent or guardian of a minor, or other adult responsible for
the welfare of a minor, if that minor possesses a firearm in violation of
subsection (4) may, if the court finds it appropriate, be required to render
community service hours together with the child in accordance with
paragraph (6) (a) or, for a second or subsequent offense, paragraph (6) (b).
and the title is amended as follows:
On page 1, line 30, before the semicolon, insert:, including community
service in certain circumstances
Rep. Hanson moved the adoption of the amendment.
Further consideration of CS/CS/HB 91-C, with Amendment 5 and a
point of order on Amendment 1 pending, was temporarily deferred.

Motion
On motion by Rep. Wallace, the rules were waived and the following
committees and subcommittees were allowed to take up and vote on
regular session legislation during their rescheduled committee meetings:
Community Affairs; the Subcommittee on Governmental Accountability of
the Committee on Governmental Operations; the Committee on
Governmental Operations; the Subcommittee on Court Systems, Probate
& Consumer Law of the Committee on Judiciary.

Motion to Recess
Rep. Wallace moved that the House stand in recess for the purpose of
holding committee meetings and conducting other House business, to
reconvene at 2:00 p.m., Wednesday, November 3. The motion was agreed
to.

Co-sponsors
HB 11-C-Merchant
HB 27-C-Ascherl, Burke, Lippman, Morse
HM 51-C-Bloom

Introduction and Reference

By Representative Arnall-
HCR 101-C-A concurrent resolution requesting members of the
Florida Congressional Delegation to appear before a joint session of the
Florida Legislature to discuss problems relating to unfunded federal
mandates.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representative Jacobs-
HR 103-C-A resolution commending the City of Delray Beach for
being named a 1993 All-America City.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representative Mackenzie-
HCR 105-C-A concurrent resolution designating Thomasville and
Tallahassee as the official training sites for the British Olympic
Association.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representatives Wise, Kerrigan, Thrasher, Fuller, Benson, Garcia,
Littlefield, Merchant, Ireland, Ritchie, Dennis and Smith-
HB 107-C-A bill to be entitled An act relating to postsecondary
education; amending s. 240.1201, F.S.; providing that members of the
United States Armed Services and civilian employees at federal military

establishments be classified as residents for tuition purposes; providing an
effective date.

November 2, 1993

if committed by an adult, from using or possessing a weapon or firearm
under certain conditions; providing exceptions; providing penalties;
amending s. 790.25, F.S.; limiting authorization for possession in private
conveyance to persons over 18; providing an effective date and a contingent
future repealer.

E OF REPRESENTATIVES 35

Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

By Representative Gay-
HB 109-C-A bill to be entitled An act relating to crime control;
amending s. 39.045, F.S.; authorizing law enforcement agencies to release
the name and address of a minor taken into custody for a felony offense
and the names of his parents; amending s. 39.054, F.S.; prescribing liability
of a parent for his child's criminal episodes; providing for community
service in lieu of restitution in certain circumstances; amending s. 790.17,
F.S.; revising penalties for furnishing weapons to minors; amending s.
790.18, F.S.; prohibiting additional arms sales to minors; revising penalties
for selling arms to minors; providing penalties for persons who furnish
weapons to minors who possess such weapons during the commission of
crimes; amending s. 790.22, F.S.; increasing penalties for permitting a child
under 16 years of age to use or possess certain weapons; providing a curfew
period for minors under 16 years of age; prescribing duties of law
enforcement officers who find such minors violating curfew provisions;
providing presumptions with respect to parental neglect; providing for
determination of dependency; prescribing duties of the Department of
Health and Rehabilitative Services with respect to maintaining a register
of minors who violate curfew provisions; providing that records of such
minors are exempt from public records laws; providing for future review
and repeal of this exemption; amending s. 812.13, F.S.; providing for
determination of dependency of a child who has been found guilty of a
felony offense; increasing the penalty for robbery when the property taken
is a motor vehicle occupied at the time of the robbery; amending s. 921.001,
F.S.; providing that a person who is sentenced to life imprisonment for a
crime committed on or after a specified date may not be released from
incarceration except pursuant to an executive order granting clemency;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

First Reading of Committee Substitutes by Publication

By the Committee on Criminal Justice; Representatives Martinez,
Logan, Ritchie and Feren-
CS/HB 91-C-A bill to be entitled An act relating to weapons and
firearms; amending s. 790.17, F.S.; prohibiting certain sale or transfer to
a minor or a person of unsound mind of a weapon, electric weapon or
device, or firearm and providing that a violation constitutes a third-degree
felony; repealing s. 790.174(3), F.S., relating to the definition of the term
"minor" for purposes of the law that requires the safe storage of a firearm;
amending s. 790.175, F.S.; redefining the term "minor"; requiring that the
purchaser of a firearm or dangerous weapon be informed that it is unlawful
to store or leave a firearm or dangerous weapon within access of a minor
or to knowingly sell or transfer a firearm or other dangerous weapon to a
minor or a person of unsound mind; amending s. 790.18, F.S.; prohibiting
an arms dealer from selling or transferring a firearm or certain other
weapons to a minor; increasing the penalty for a violation from a
misdemeanor to a felony; amending s. 790.22, F.S.; requiring parental
consent for minors to use certain guns or electric weapons or devices;
increasing penalties for a violation by an adult; providing penalties for a
violation by a minor; prohibiting a minor from possessing a firearm;
providing certain exceptions; prohibiting adults responsible for a minor
from knowingly permitting the minor to unlawfully possess a firearm;
providing penalties for a violation by an adult; providing penalties for a
violation by a minor; providing for the seizure and disposal of a firearm or
certain guns or electric weapons or devices that are used or possessed
unlawfully by a minor; providing that such provisions are supplemental to
certain other criminal sanctions; providing for the secure detention of a
minor charged with a violation of certain provisions of ch. 790, F.S.,
pending a court hearing; amending s. 790.23, F.S.; prohibiting felons, and
juveniles found to have committed a delinquent act that would be a felony

36 JOURNAL OF THE HOUSE

Reports of Standing Committees
Received November 1:
The Committee on Insurance recommends the following pass:
HM 51-C
HM 61-C
The above bills were placed on the Calendar.
The Committee on Commerce recommends the following pass:
HB 89-C
The above bill was referred to the Committee on Finance &
Taxation.
The Committee on Commerce recommends a committee substitute for
the following:
HBs 85-C, 99-C, 15-C, 13-C & 23-C
The above committee substitute was referred to the
Committee on Finance & Taxation and, under the rule, HBs
85-C, 99-C, 15-C, 13-C and 23-C were laid on the table.
The Committee on Insurance recommends a committee substitute for
the following:
HB 31-C
The above committee substitute was referred to the
Committee on Finance & Taxation and, under the rule, HB 31-C
was laid on the table.
The Committee on Insurance recommends a committee substitute for
the following:
HBs 33-C & 43-C
The above committee substitute was referred to the
Committee on Finance & Taxation and, under the rule, HBs 33-C
and 43-C were laid on the table.
Received November 2:
The Committee on Appropriations recommends the following pass:
CS/HBs 33-C & 43-C (fiscal note attached)

I]

E OF REPRESENTATIVES November 2, 1993

CS/HB 31-C, with 1 amendment (fiscal note attached)
HB 89-C, with 5 amendments (fiscal note attached)
CS/HBs 85-C, 99-C, 15-C, 13-C & 23-C, with 5 amendments (fiscal note
attached)
The above bills were placed on the Calendar.
The Committee on Governmental Operations recommends the following
pass:
HB 71-C, with 1 amendment
HB 73-C
The above bills were placed on the Calendar.
The Committee on Appropriations recommends a committee substitute
for the following:
CS/HB 91-C (fiscal note attached)
The above committee substitute was placed on the Calendar
and, under the rule, CS/HB 91-C was laid on the table.
The Committee on Finance & Taxation recommends the following pass:
CS/HBs 33-C & 43-C (fiscal note attached)
CS/HB 31-C (fiscal note attached)
HB 89-C (fiscal note attached)
CS/HBs 85-C, 99-C, 15-C, 13-C & 23-C (fiscal note attached)
The above bills were referred to the Committee on
Appropriations.
The Committee on Criminal Justice recommends a committee substitute
for the following:
HB 91-C
The above committee substitute was referred to the
Committee on Appropriations and, under the rule, HB 91-C was
laid on the table.

Recessed
Pursuant to the motion previously agreed to, the House recessed at
8:44 p.m., to reconvene at 2:00 p.m., Wednesday, November 3.

SThe JournalOF THE

House of Representatives

THIRD SPECIAL SESSION-"C" of 1992-1994

The House was called to order by the Speaker at 2:00 p.m.

Prayer

House Physician
The Speaker presented the Honorable Ben Graber of Coral Springs, who
served as Doctor of the Day.

The following prayer was offered by the Reverend Hal Marchman of
Astor, upon invitation of Speaker Bolley L. Johnson: The Journal

Almighty God, we thank You that all the water in the ocean will not sink
a ship until it gets inside the ship, and You have promised to give us inner
strength equal to all the outer pressures. Help us to depend on this
wonderful promise. Shalom and Amen.
The following Members were recorded present:

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson

De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Gordon
Graber
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King

Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Excused: Rep. Goode until 4:40 p.m.
A quorum was present.

Pledge
The Members, led by the Honorable Cynthia Moore Chestnut of
Gainesville, pledged allegiance to the Flag.

The Journal of November 2 was corrected and approved as follows: On
page 34, in column 1, strike line 22 and insert:

Point of Order
Rep. Geller raised a point of order that the amendment was not within
the purview of the Call.
Further consideration of Amendment 1, with pending point of order, was
temporarily deferred.

Introduction and Reference

By Representative Mackenzie-
HR 117-C-A resolution designating Thomasville and Tallahassee as
the official training sites for the British Olympic Association.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representatives Kelly and Trammell-
HB 119-C-A bill to be entitled An act relating to correctional
facilities; setting forth legislative intent with respect to Specific
Appropriation 1934C, chapter 91-193, Laws of Florida; ratifying and
affirming the selection process for obtaining construction and operational
services in the establishment of a privately built and operated correctional
facility; providing an effective date.
-was read the first time by title and referred to the Committees on
Corrections and Appropriations.

Communications
The following proclamation was read:

PROCLAMATION

State of Florida
Executive Department
Tallahassee
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE AND
THE FLORIDA HOUSE OF REPRESENTATIVES:
WHEREAS, the Thirteenth Legislature of the State of Florida, under
the Florida Constitution, 1968 Revision, convened in regular session on
Tuesday, February 2, 1993, and adjourned sine die on Sunday, April 4,
1993, and
17

Number 3

Wednesday, November 3, 1993

1 _

___ ___ ___ __ __ _ _____ __

JOURNAL OF THE HOUSE OF REPRESENTATIVES

WHEREAS, by proclamation dated October 11, 1993, and amended
November 1, 1993, the Governor called the Florida Legislature into special
session to convene on November 1, 1993, to consider the issues of workers'
compensation, juvenile crime, property insurance and reinsurance, and tax
credits for defense industries converting their defense production into
civilian applications, and
WHEREAS, it is appropriate to amend those proclamations to include
additional issues which relate to the serious criminal justice issues which
must be addressed before the regular session of the Florida Legislature in
1994.
NOW, THEREFORE, I, LAWTON CHILES, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article III,
Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:
Section 2 of the Proclamation of the Governor dated October 11, 1993,
as amended by the Proclamation of the Governor dated November 1, 1993,
is hereby further amended to add the following paragraphs (e) and (f):
Section 2.
The Legislature of Florida is convened for the sole and exclusive
purpose of considering the following:
(e) Technical clarifications and statutory conformance of
correctional issues contained in the Safe Streets Initiative of 1994, by
amending ss. 921.001, 921.0011, 921.188, 947.1405.
(f) Legislation pertaining to Specific Appropriation 1934C,
Chapter 91-193, Laws of Florida, setting forth legislative intent.

SIN TESTIMONY WHEREOF, I have hereunto
set my hand and have caused the Great Seal of
the State of Florida to be affixed at Tallahassee,
the Capitol, this 3rd day of November, 1993.
LAWTON CHILES
Governor

ATTEST:
JIM SMITH
Secretary of State

Motion
On motion by Rep. Wallace, the rules were waived by the required two-
thirds vote and HB 113-C was added to today's Special and Continuing
Order Calendar.

Recognition Ceremony for Clerk-emeritus/Historian, Dr. Allen
Morris
On motion by Rep. Wallace, the rules were waived and the regular order
of business was suspended for a recognition ceremony to be conducted. On
further motion by Rep. Wallace, the rules were waived and the privilege
of the floor was granted to Joan Morris, Dr. Allen Morris's wife, and a
guest, Lucy Morgan, Bureau Chief, St. Petersburg Times. On further
motion by Rep. Wallace, the Speaker appointed Reps. Martinez, Gordon,
Mitchell, Hawkins and Crady to escort Dr. Allen Morris, Joan Morris and
Lucy Morgan to the Chamber.
On motions by Rep. Wallace, the rules were waived and-

By Representative Bo Johnson-
HR 115-C-A resolution commending and honoring Allen Morris for
his years of service to the State of Florida and the House of
Representatives.
WHEREAS, Allen Morris has been caught up in the magic of the
legislative process since 1941 when he first covered this legislature as a
reporter, and
WHEREAS, Dr. Morris served as consultant to the House of
Representatives on rules and procedure from 1947 to 1966, and
WHEREAS, on July 1, 1966, Dr. Morris was elected Clerk of the House
of Representatives, serving in that capacity until November 18, 1986,
during an era of great change, and

WHEREAS, as Florida moved from a biennial legislature without
permanent staffing to an assembly with annual sessions and professional
staffing, Dr. Morris steered us through these changes with competence and
great vision, and
WHEREAS, the example set by Dr. Morris of meticulous attention to
detail, integrity, and respect for proper procedure has inspired staff and
legislators for half a century, and
WHEREAS, Dr. Morris implemented most of the innovations which led
to recognition of the Florida Legislature as a national leader among state
legislatures, and
WHEREAS, from the time of his designation as Clerk
emeritus/Historian until this day, Dr. Morris has continued to record
historic events and the people who shaped them in his inimitable style of
wit and warmth, and

WHEREAS, Dr. Morris has given a helping hand and a kind word to
countless freshmen legislators through the years, and
WHEREAS, Dr. Morris has served under the following Speakers as
Clerk of the House: E. C. Rowell, Ralph D. Turlington, Frederick H.
Schultz, Richard A. Pettigrew, T. Terrell Sessums, Donald L. Tucker, J.
Hyatt Brown, Ralph H. Haben, Jr., H. Lee Moffitt, and James Harold
Thompson; and the following as Clerk emeritus/Historian: Jon L. Mills,
Tom Gustafson, T. K. Wetherell, and Bo Johnson, and has been a cohesive
element as legislators come and go, and
WHEREAS, Dr. Morris has been a guiding force, a source of wit and
great wisdom, a friend and confidant to the mighty and the powerless, and
is a living legend respected by all Floridians, NOW, THEREFORE,
Be It Resolved by the House of Representatives of the State of Florida:
That this House commends Allen Morris, loving son and dedicated
servant of the State of Florida, archivist, scholar, journalist, chronicler, and
participant in Florida history and its government, and hereby expresses its
appreciation and affection.
-was introduced and read the first time by title. On motions by Rep.
Wallace, the rules were waived and the resolution was read the second time
in full and adopted unanimously.
The Speaker directed the Clerk to open the board and the following
Members were recorded as co-sponsors of the resolution, along with Rep.
Bo Johnson: Reps. Abrams, Albright, Armesto-Garcia, Arnall, Arnold,
Ascherl, Bainter, Benson, Bitner, Bloom, Boyd, Brennan, Bronson, Brown,
Bullard, Burke, Bush, Casey, Charles, Chestnut, Clemons, Constantine,
Cosgrove, Couch, Crady, Crist, Davis, Dawson, De Grandy, Dennis,
Edwards, Eggelletion, Feeney, Feren, Fuller, Futch, Garcia, Gay, Geller,
Glickman, Gordon, Graber, Greene, Hafner, Hanson, Harris, Hawkes,
Hawkins, Healey, Hill, Ireland, Jacobs, Jamerson, Buddy Johnson, Jones,
Kelly, Kerrigan, King, Klein, Laurent, Lawson, Lippman, Littlefield,
Logan, Long, Mackenzie, Mackey, Manrique, McAndrews, McClure,
McMahan, Merchant, Miller, Minton, Mishkin, Mitchell, Morroni, Morse,
Mortham, Ogles, Peeples, Posey, Pruitt, Rayson, Reddick, Ritchie,
Roberts, Rojas, Rudd, Rush, Safley, Sanderson, D. Saunders, R. Saunders,
Schultz, Sembler, Shepard, Simon, Sindler, Smith, Stabins, Stafford,
Starks, Sublette, Tedder, Thomas, Thrasher, Tobin, Trammell, Upchurch,
Valdes, Villalobos, Wallace, Warner, Webster and Wise.

Motion
On motion by Rep. Wallace, the rules were waived and the following
remarks were ordered spread upon today's Journal, if time permitted. If
time did not permit, the Clerk was directed to print the remarks in the
following day's Journal.
Former Speaker Turlington: Mr. Speaker, Allen Morris, Mrs.
Morris, Members of the House of Representatives, ladies and gentlemen.
It's indeed a privilege to be here today. First I'd like to lay down the ground
rules that the person that-if you ever go to any annual meetings or things
of that sort, you'll notice that the first person that speaks sort of sets the
tone and the length of the talks. This is not true in the House of
Representatives, where you have former Speakers. The rule there is that

the first speaker and the oldest speaker speaks the longest of anyone and
the others adjust their comments accordingly.

38

November 3, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

I have great pride in the association that I've had with Allen Morris. Your
resolution provides correctly that Allen first became Clerk on sort of an
interim basis under the speakership of E. C. Rowell. And in those days, you
know, why we really weren't in session, so he was not heavily burdened at
the time during that period. But this state owes a whole lot both to Allen
and E. C. It was all E. C.'s idea, and when he came to me as the Speaker-
designate and suggested Allen, that seemed to me to be a very fine idea,
and I didn't see any problem with it, and then he told me to go talk with
Allen, which I did, where I found that Allen was not a candidate for the
office at all. As a matter of fact, he turned me down and indicated that he
did not really want to be the Clerk. He thought there'd be too much public
activity and it'd be an invasion of his privacy. He's not been called on to
speak in the United States Senate recently but- [laughter]
And so I talked further, of course, with E. C. and then put on my most
persuasive manner that I could and pleaded with Allen to take the position.
So we have someone that started off really as Clerk of the House of
Representatives in which he was sought, he did not seek the office or the
position. He was ideal for the office, and as a Speaker I was very grateful
that he was there.
He, as you know, has an enormous perspective. He knew the rules, he was
quite familiar, but he also, if you know Allen-Allen is a person that's just
simply got a plain lot of good common sense and judgment. And he's also
a person that has an enormous amount of what I would call public policy
commitment and evaluation. That if you want to talk to someone about
what would be good about various policy issues for Florida or for the public
generally, Allen can give you, I think, the very best advice and the ways to
go about it of anyone that I've ever met. And I haven't seen any time in
terms of advice that he gave in which he sought to represent anything other
than a public interest as opposed to a private interest.
There's another great advantage of having Allen as Clerk while you are
Speaker. As Speaker, just like Speaker Bolley Johnson, you want people
to actually be under the misconception that you know everything about the
rules and things of that sort. [laughter] And the Rules Chairman, of course
he wants to create the impression that he knows everything, and the truth
of the matter is that this may not be true. But you can't let it get out that
it isn't true. So with Allen as Clerk, it was very easy to operate. You've had
these situations in which someone comes up, and they're always these
bright characters that bring up some point of order. And as they bring up
the point of order, the first thing you do as Speaker is to create the opinion
that you have no degree of frustration whatsoever, and you appear to be
making notes on what the character is saying. And as he is speaking along,
you are writing these notes down and as you're writing these notes down,
meanwhile, you're sending a little note to Allen saying, "What do we do?"
[laughter] And then as he finishes, why you ask if there are any others that
are coming on, again acting as if you've got the full presence. And then
Allen sends up the note and to be sure that no one associates any note that
you receive of what your ruling is going to be, be sure then to call on the
Rules Chairman, you know, to finally wrap it up. And when the Rules
Chairman speaks briefly, then you, having read the note as unobtrusively
as possible, you then make your ruling and everybody says, "You know,
that's really remarkable, you know, he really had it right on the button!"
[laughter] And it also appears as a precedent set by Ralph Turlington as
Speaker, or Don Tucker as Speaker, or something like that and you can
show that to your children and grandchildren and they will admire you for
perhaps an inconsequential reason but one that you think is important.
[laughter]
I say the State of Florida and especially the House of Representatives
owes a great deal to Allen Morris. All of us that have served in the House
are very proud of the institution and very proud of the opportunity to have
served in the House of Representatives and to serve the state. But when
you have a person like Allen that is really a state institution and a state
resource, our historian, the person for whom when you go to look up history
and so forth, that's where you go. It is something that lends a status and
a prestige and now does and always has lent status and prestige to our body
and to our organization. But I say again, Allen, the greatest tribute I can
really make to Allen, is that indeed he is a public servant who puts the
public first and we are most grateful. Thank you. [applause]

Former Speaker Tucker: Thank you, Mr. Speaker, our honoree
Dr. Morris, fellow has-beens, [laughter] and Members of the Florida
House. It was refreshing to hear Speaker Turlington. He was the first
Speaker under whom I served when I was first elected to the Legislature
and I always knew he didn't know what was going on but, this is the first
time I've ever known that he knew it. [laughter] Thank you, Mr. Morris.
Actually, I've known Allen Morris a lot longer than he has known me.
Back when I was a kid growing up in Crawfordville, we had a monthly
newspaper that all it had in it, it was just one little flip over, and all it had
was advertising and the tides, except for one little column there that was
entitled "Cracker Politics" by Allen Morris, which gave you some insight
into what was going on politically in this state. My second opportunity to
know about Mr. Morris was when I was elected Governor of Boy's State in
1952, then-Governor Fuller Warren gave me an autographed copy of his
book, How to Win in Politics, authored by Fuller Warren and Allen Morris.
I still have that book, Mr. Morris, in my library at home. I don't refer to
it very often because-I should have before I ran for office the last time
[laughter]-but in the prologue to that book a statement is made which I'll
attribute the words to Mr. Morris, although they were coming out of,
supposedly, the pen of Fuller Warren that public office is the highest
calling to which a person can aspire. They pointed out there that if you
were a great physician, you might have influence over the lives of
thousands of people, but if you were a public servant, you would have
influence in a positive manner over the lives of tens of thousands. Allen
Morris has always regarded the legislative process in the House of
Representatives in this fashion: the highest of callings.
When I was Speaker of the House of Representatives, I never called on
Allen to assist me with the rules because I knew the rules. [laughter] During
four years of time at no time did I ever ask him about them. But I tell you
what I did do during those four years and which I greatly and deeply
appreciated. I had a lot of problems and you know they-most of them
were of my own making-but I could go into his office and sit down with
Allen Morris and talk to him as sort of a father confessor, and he would
hear my sins and absolve me of them and tell me to go my way and sin no
more. Actually, he was a tremendous help to me. He would sit in my office
at times when I didn't go to his office and we would talk about what was
going on in the House of Representatives in the State of Florida and things
that we could do to improve the process. I always wanted to improve the
process and he was a great asset to me in doing that. He has been
deservedly respected by all the people who have served in this legislative
process who have come to know him. I think the people in Florida owe a
great debt to the service that he has provided for us to them through their
House of Representatives, and it's a great privilege that I have today to be
one of those to say a few remarks in honor of you, Allen Morris, my friend,
my confidant. And I hope that you'll be here a long time, and in parting
let me say these final words: when and if Allen is called from this earth,
I'm sure that they have in the heavenly halls a place for him to sit and be
the heavenly scribe that he deserves. Thank you, Sir. [applause]
Speaker Johnson: Thank you, Speaker Tucker. The Chair
recognizes Speaker Haben.
Former Speaker Haben: Mr. Speaker, Members of the House, Dr.
Morris, Joan, let me begin by saying that last night at 10:00 I received a
call at home-I have a telephone-[laughter] and it was Lee Moffitt, who
is a close friend of mine. I have guided him through most of his career.
[laughter] Lee said to me, "Ralph, for once in your life, please be serious.
Don't talk about some of the things that you have talked about relative to
Dr. Morris." [laughter] And I made that commitment and I'm going to keep
it for a moment. [laughter]
Relative to Don Tucker, I was vastly different with Allen Morris. I spent
probably a third of my time as Speaker in his office because I was
interested in the rules and I went to his office before I ever became the
Rules Chairman. And I asked him all the time what to do. If you were here
during the Tucker administration, you will understand why Don did not
go because he didn't know the rules then and he doesn't know them now
and it really didn't matter. [laughter] How many people in here understood
what Speaker Turlington said? Raise your hand. [laughter] That's why
Speaker Turlington-thank you. [laughter]

Speaker Johnson: Thank you, Speaker Turlington. Now we'd like I am going to be serious for just a moment. I tell you, it's amazing. I had
to recognize Speaker Tucker. not seen the resolution and I really did not know what was in it until I heard

November 3, 1993

39

40 JOURNAL OF THE HOUSE

it read today, and there are two things that jumped out at me because when
I was driving in this morning, I said, "What in the world are you going to
say about a man that you deeply respect and you deeply love and he's
sitting there looking at you?" And that's not an easy thing to do. I've had
the occasion to speak from this well. I've been frustrated. I've been happy.
I've been fearful. And I thought first about the legislative experience and
something that I had a conversation about with a member of the press.
That member of the press and the newspaper was not owned by the
communist party, and so you can relax relative to that. [laughter] And they
said, "What is the greatest experience of your life?" And I said, "That's very
easy. The experience that you have here in the Florida House of
Representatives will never be equalled." There are governors sitting in
these chambers. Some of you will run for Congress one day, and you'll not
come back. Some of you will go to the Senate, and you'll be confused.
[laughter] But you will never forget the experience you have here because
there is nothing else in the world like the Florida House of Representatives.
I've always believed that. [applause] And part of the reason, as a matter
of fact a majority of the reason that this House is the way it is today, is
because of that man.
And there is a term-and I have kidded him about it for years and years
and yet it's very true-and I get to say it now. I always said, "Well, is Allen
Morris a legend in his own time or in his own mind?" The fact is, he is a
legend in his own time, and I was serious with myself for a moment which
is difficult. But I said, "What really makes a legend in his own time?" Let
me tell you what it is. It's somebody that so substantially impacts a system
or a process that he becomes interwoven with that process so when you
think of the process and the institution, you think of him. And that man
seated right there is exactly who you think about when you think of the
Florida House of Representatives. That is the Florida House of
Representatives. That is the rules. That is the rules that make this what
it is. The resolution said something else. It said we're the top legislature
or among the top legislatures in the United States. Fact is we have always
been the top legislature in the United States. Anytime we were second and
third it was because those that rated us got confused. [laughter] We are a
great legislature and so much of why we are a great legislature is sitting
right there. Because of the rules that this House goes by, because we are
fair, because we have, people, an opportunity to be heard and because of
that we are recognized as good, and that's the reason we're recognized and
the root and basis of that is Allen Morris. Those two things come to my
mind. He has been my friend for a long time. We did things a little
differently than when Speaker Turlington was there. He's right about the
facade of writing down. I could not write, unfortunately. [laughter] So what
I would do is I would consult Allen on each and every ruling. But I went
through some gyrations that made it look better, like I knew what I was
doing. It went something like this. "OK, we have a rule challenge here.
Allen, over here." [laughter] And what you do is, they don't know what
you're doing and then you shut the mike off and start pointing at him like
you're telling him what to do. [laughter] "OK, I've got it right here. Not a
problem." Zip. But on every ruling, I never ever made a decision without
talking to Allen Morris, and I want to tell you today from all the Speakers,
from me particularly, for this House, for this institution, thank you for
what you've done. [applause]
Speaker Johnson: Thank you, Speaker Haben. The Chair
recognizes Speaker Moffitt.
Former Speaker Moffitt: Mr. Speaker, Members of the House, Dr.
Morris, Joan, ladies and gentlemen, I always have been placed in the
position of having to follow Ralph Haben. laughterj Somebody has to
clean up. [laughter] And it is my plight in life to be in the position of having
to do that. As a Member of the House, I always thought it was one of the
greatest honors that I could have to be able to speak on the floor of the
House. It is a great, great honor that the people have given you and have
given me over the portion of my life. It is a unique honor to be able to come
back and be your guest today and say a few words about a very, very special
man.
Allen Morris has been such an integral part of the history of this House

since 1941. I came into the Chamber this morning when y'all weren't here
and I was looking around to find McCarty's picture, Dan McCarty's
picture, and found it is way back over there in the corner just to the left
of T. K. Wetherell's, Speaker Wetherell's picture. And when you think
about it, Allen has been involved in this Legislature since McCarty through

I

E OF REPRESENTATIVES November 3, 1993

every single one of those Speakers all the way around over to this end. And
I counted it out, I don't know if I am correct or not, but I believe there are
25 Speakers that you have been involved in, at least there are 25 pictures
up on the wall. And to me that is kind of like you've seen the military
Master Sergeant that has the long arm of service stripes down his arm and
you can tell that, man, that fellow has been around for a long time. Well,
Allen, those are your service stripes all the way around the Chamber, and
each one represents years of hard work on your part to make them look as
good as you possibly could. And I think for the most part that you did a
great job because of what Ralph said-this House has always been viewed
as one of the finest legislative bodies in the United States.
Each Speaker, as you have heard, has turned to Allen for guidance, but
it was always with the tough issues. We could handle the easy issues, but
Allen always ended up having to help us out of the tough issues. When
things would get tough on the floor and the passions were high and the
rules were so complicated, we all turned to Allen at one time or another and
Allen would guide us with his steady manner and his very calming influence
and he would teach us the rules as we went along. In my opinion that has
been, Allen, your greatest contribution. You have been our teacher. You
have been our mentor. I can't begin to tell you how many times I've gone
to Allen while I was in the Legislature and since I have been out of the
Legislature for his advice and counsel. He is truly the definition-he is
perfect for the definition of the word "sage." I had breakfast this morning.
I ran into Representative Vernon Peeples and Vernon reminded me, I
thought I would just throw this in-it is a little self serving-that Allen at
one point in time used to be a lobbyist. Vernon is never wrong, Allen.
[laughter] And that proves, incidentally, that perhaps maybe being a
lobbyist, you can still maintain some measure of distinction.
Allen has written numerous books about the Legislature, our state, The
Language of Lawmaking, Florida Handbook and on and on, just to name
a few. He is the undisputed expert on everything from lawmaking to
protocol and his door is always open. I just recently had an occasion to have
a protocol question about a public hearing in Tampa, and I wrote Allen a
letter, and he helpfully guided me through the sticky situation that I was
in and advised me that I had probably handled the situation correctly. It
made me feel a lot better. He's counseled with all of us with his special
brand of insight for so many years, and I know that all of us, the Speakers,
the non-Speakers, the Republicans, the Democrats wish to express our best
wishes to you, Allen, and our continuing thanks for your many years of
service to the people of Florida.
Allen has often quoted Lady Astor who said of the House of Commons:
"The House is like the sea. Its Members are like ships that sail across it and
they disappear over the horizon. But of course, the sea always remains."
Allen, as we all have voyaged across that sea you have been our navigator.
But aside from being the navigator, Allen Morris is special because he has
also given us his friendship. My life has been enriched because of his
friendship and his teachings. Allen, I thank you very much for your service
to the State and to this Legislature and your friendship to me. [applause]
Speaker Johnson: Thank you, Speaker Moffitt. Speaker Gustafson.
Former Speaker Gustafson: Mr. Speaker, Members of the House,
Mr. Clerk, Joan, my being here today is a little fortuitous, I was in
Tallahassee and I did what I always do, which is I go in to see the Clerk.
No disrespect to the current Clerk, the Clerk for me has always been Allen
Morris. I, unlike everybody you have heard before, was not Speaker with
Mr. Morris as Clerk. So all of my memories are of a 27-year-old legislator
who came up to Tallahassee, did not know anybody, did not understand
the process and through it all in a 14-year career, began to assemble the
facts and began to understand what was going on. And like the Speakers
that you have heard before, I would always go in for counseling, and he is
not only a father confessor and an expert on the rules, but for me he was
the history book because I knew that there was just a lot of history missing
in my head.
I didn't understand what this House was. I didn't understand how
important it was and I knew that somebody out there had to know. And

by process of elimination, since Don Tucker wouldn't talk to freshmen
[laughter]-that's how it was-and since Ralph and Lee had always
advised me to go seek counsel from those with the experience, I ended up
at the Clerk's door and began to understand the history of the House. It
wasn't just the current people, it was the people who were there. And one

JOURNAL OF THE HOUSI

of the things that he encouraged me to do and one of the things that we
were talking about today, even, was I went around and talked to all the
former Speakers and of course, back ten years ago there were a few more
former Speakers around to talk to. And I asked them about their
experience in the House and everybody was able to go back and talk about
their experience with Allen Morris. But what I heard also was-of the
Speakers that you could then find in Tallahassee and in Jacksonville and
in Miami and every place else I would go-they would talk, not only about
Allen Morris, the advisor to Speakers, but Allen Morris a person who they
went to as young Members to seek advice and to get counseling and to get
direction. Because it was the Members who were able to learn the process
quickest who were the ones who could move up fastest and someday be
lucky enough to become Speaker. And to the Clerk, I would like to properly
refer to you as the Historian of the House as well as our mentor and our
advisor on rules: someone who is a treasure, who has been able to put in
print that history so that it will always be available to those freshmen
Members coming in as they begin to try to understand the complex and
wonderful institution of the Florida House. Thank you. [applause]
Speaker Johnson: Thank you Speaker Gustafson.
Speaker Morgan. [laughter]
Lucy Morgan: I think my reputation has just been sullied. [laughter]
I'd like to confess today and tell you that all of the stories that I've gotten
over the years, all of the bad things that we've caught you doing, have been
contributed by Allen Morris. [laughter] I'd like to make that confession,
but it would not be true, and it would give Allen a heart attack if I were
to say that. Instead, I will tell you that Allen has often been the bridge
between you and us.
Allen told me the other day that when he entered this House in 1941 as
a reporter for The Miami Herald, that the reporters sat down here on the
floor with you every day. Sometimes he voted for Members of the House
who weren't there to press their buttons. We might have improved your
voting records, guys. But that he missed most of all, in these times, the
collegiality that used to exist between all of the elements. The lobbyists,
who were on the floor as well, the reporters and the legislators. And that
he thought the process had lost a lot from the absence of that. I will tell
you that I, as a reporter, and many other reporters for generations have
gained from Allen a great knowledge of the process. And I can best explain
to you the difference in what you have in Allen Morris, and what others
lack, by what I went through last year after the election. There were 47 new
Members here in the House, a lot of new ones in the Senate. And I was
trying to see-there were all manner of people around me telling me this
was a record. I went over and spent several hours in the Senate, and I had
to do research Journal by Journal, year by year, to find that it indeed was
not a record. I walked into Allen's office and I said, "Allen, I'm trying to
dig out the information about how many new Members there were coming
into the House in various years." He said, "Oh, here it is." And he handed
me two sheets of paper which go back to 1924, and tell how many new
Members, how many of you were Democrats and how many were
Republicans. That's the sort of history that Allen has built for you and for
us as reporters and we owe him a great debt. [applause]
Speaker Johnson: Having heard from the speaker of the press corps,
the Chair appoints Speaker pro tempore Elaine Bloom to take over the
Chair.

THE SPEAKER PRO TEMPORE IN THE CHAIR
The Chair: As one who has benefited greatly from the guidance
provided by Dr. Allen Morris, and with gratitude for today's opportunity
for our newer colleagues to experience the feelings, the dignity and the
impact of Allen Morris's tenure throughout this process, it is an honor to
call on our Speaker, Representative Bo Johnson, for today's presentation.
Representative Johnson, you are recognized. [applause]
Speaker Johnson: When Dr. Allen Morris speaks of himself, he
describes himself as a camera with the shutter open. And truly it's been
through his eyes that many people have seen the Florida Legislature. There
have been times when he has brought us into focus and shown us at our

very best. And there have been times when he truly characterized the
struggle that we as legislators go through.

November 3, 1993

collapsed metal folding chairs, the hum of a hundred conversations, the
shout of Members trying in debate to make themselves heard without
microphones. The Speaker could really isolate a Member by seating him
on the back row, particularly if the Member was not strong of voice. He
could cry, "Mr. Speaker" from the session's first day until the last without

E OF REPRESENTATIVES 41

It was once said by Winston Churchill that the chief difference between
Sir Winston and a cat is that a cat only has nine lives. I think that is
somewhat akin to the life of Dr. Allen Morris.
Newsman, public servant, author, scholar, historian, humorist,
researcher, collector of anecdotes, doctor of letters, I could go on and on,
but most of us know him as Clerk. And Clerk Emeritus. And we think of
the ancient meaning of that term. The Greek word kleros, from which both
clerk and clergy come, means "inheritance." And it's used in the Book of
Deuteronomy in [chapter] 18, verse 2, which refers to clergy as the
"inheritors of God."
The early clergy were often the only people in the community who could
read and write. And there have been times when some of the press corps
members probably thought that Allen Morris was the only one in the
Legislature capable of that feat. But truly, they were giving to those scribes
the responsibility to record the history and the teachings and to pass along
those values to future generations.
And truly, we rely on Dr. Morris for those talents. Because of his work,
all of us have a treasured inheritance in the recorded history of the State
of Florida, its government, its Legislature. For our children and our
children's children will read the works of Allen Morris. They will find much
about what kind of people we were, what kind of government we have, in
a very formulative time in our history. They will be his heirs.
There is an old saying that's been embossed on tee shirts at family
reunions, and it's been around for generations and it says, "When you know
where you come from, it's easy to see where you're going." And thanks to
Dr. Allen Morris, we've got a good idea of where we come from. Thank you,
Dr. Morris. [applause]
If you would come forward at this time, I would like to make a
presentation on the part of the House.
For those of you who wonder how Dr. Morris is doing today and his role
in the House, this picture was taken just this month.[The Speaker
presented a photograph of Dr. Morris in a wizard costume.] [laughter] It
shows the many talents and wisdoms possessed by Dr. Morris, and this was
this Halloween period, and we are very grateful for your having
participated with us, Dr. Morris.
And this plaque on behalf of the Florida House reads: "The House of
Representatives honors Dr. Allen Morris for a lifetime of service to
Florida-November 3, 1993." Thank you, Dr. Morris. [applause]
The Chair: Dr. Morris, you are recognized for your response.
Dr. Allen Morris: Thank you, Madame Speaker.
Mr. Speaker, Members of the House, I am truly grateful for this
opportunity to talk about the House as it once was.
I will never forget that evening in April of 1941 when I first walked into
the House Chamber. The House was not yet in session, so families had
joined the Members in the Chamber. There was a pleasant din as greetings
were exchanged. Down the hall and around the corner in the Senate
Chamber, there was hub-bub as Senator Ernest R. Graham, father of
today's Senator Bob Graham, broke with tradition by refusing to vote for
the caucus choice for Senate President.
For me, that evening was the commencement of a professional life that
has been a joyous adventure, even when an aggrieved Senator sent the
threat that I would be expelled if I showed up in the Senate. [laughter] You
all understand, I'm sure, that I found much work to do in the House.
[laughter]
The relationship was much closer than it appears today, for Members,
secretaries and press intermingled. With few exceptions, they shared the
triumphs and the defeats. The stenographers often sat next to their
Members as the Members had no private offices. The secretaries could take
dictation while the session was in progress. Some of the secretaries were
wives of Members, a now-outlawed practice.
It was a noisy Chamber. There was the clatter of kicked spittoons and

42

the Speaker ever hearing him. [laughter] The open galleries contributed to
the bedlam and to the haze of tobacco smoke which hung over the
Chamber. Interestingly, perhaps, the size of the spittoon was a
distinguishing difference between the House and the Senate. Long after
need had disappeared with the passing of tobacco chewers, the House used
low, nickel-plated cuspidors while the Senate had high, brass spittoons.
And there was even the occasional whimper of a dog that came with its
master to a seat just beyond the Dade delegation and occasionally was
inadvertently kicked by someone trying to thread a passage between the
desks. Incidentally, Dade County had three Representatives and one
Senator. [laughter]
Occasionally, the din of the House would be interrupted by the
stentorian shout of the Sergeant at Arms: "Mr. Speaker, message from the
Senate." And the Speaker would respond: "Let the message be received."
Now the messages are received behind the scenes.
Five chandeliers served more as ornamental rather than useful lighting
fixtures. Open windows complemented a weak air-conditioning system.
The House met in night session two or three times a week. If you dine at
the Governors Club nowadays, you can see one of those chandeliers over
the stairway.
There were four typewritten copies of bills: the original and one carbon
copy for use of Members, another for the Senate and a fourth shared by
the press and public. Actually, a Member almost invariably had to take the
bill sponsor's word for what it did. [laughter]
The atmosphere of a temporary camp was enhanced by the fact that the
Legislature met in regular session every other year, with seldom a special
session. Until 1955, the Legislature had no full-time, year-round
employees. Employees, from the Clerk of the House to secretaries, were
called attaches and were uniformly paid 6 dollars a day. The depression
was slowly lifting from Florida, and there were still several applicants for
every job. And that meant most of those chosen considered themselves
fortunate to be here.
With the mellowing or the blandness of today's House, there have been
few recent public offers of fisticuffs. Even the Senate has mellowed since
1949, when Senator Sandy McArthur belted Miami Herald reporter Steve
Trumbull just outside the main entrance of the Senate. [laughter] The
Senator broke a small bone in Trumbull's cheek.
All this nearness, in the Chamber, committee rooms, away from the
Capitol made those good old days, indeed, in a very personal sense. There
were real tears in the eyes of many of us when the Speaker's gavel came
down for the last time on the 60th day and our little family departed the
Chamber to the singing of "Auld Lang Syne" for all of us knew we would
never meet again as a group.
Thank you so much.
The committee escorted Dr. Morris, Mrs. Morris and Lucy Morgan from
the Chamber.

THE SPEAKER IN THE CHAIR

Regular Order of Business Resumed
A quorum was present.

Announcement

November 3, 1993

Be It Resolved by the House of Representatives of the State of Florida, the
Senate Concurring:
Section 1. Rule One of the Joint Rules of the Senate and House of
Representatives is amended to read:
Rule One
Lobbyist Registration and Reporting
bhebcyinig
1.1 Those Required to Register; Exemptions; Committee Appearance
Records
(1) All lobbyists before the Florida Legislature must register with the
Joint Legislative Management Committee. Registration is required for
each principal represented.
(2) As used in this rule, unless the context otherwise requires:
(a) "Designated lobbyist" means a lobbyist who is appointed by the
principal to file the Consolidated Expenditure Report.
(b) "Legislative action" means introduction, sponsorship, testimony,
debate, voting, or any other official action on any measure, resolution,
amendment, nomination, appointment, or report of, or any matter which
may be the subject of action by, either house of the Legislature or any
committee thereof.
(c) "Lobby" or "lobbying" means influencing or attempting to
influence legislative action or nonaction through oral or written
communication or an attempt to obtain the goodwill of a member or
employee of the Legislature. The terms "lobby" and "lobbying" include
influencing or attempting to influence procurement actions of the
Legislature.
(d) "Lobbyist" means a person who is employed and receives payment,
or who contracts for economic consideration, for the purpose of lobbying,
or a person who is principally employed for governmental affairs by
another person or governmental entity to lobby on behalf of that other
person or governmental entity. An employee of the principal is not a
"lobbyist" unless the employee is principally employed for governmental
affairs. "Principally employed for governmental affairs" means that one
of the principal or most significant responsibilities of the employee to the
employer is overseeing the employer's various relationships with
government or representing the employer in its contacts with government.
Any person employed by any executive, judicial, or quasi-judicial
department of the state or any community college of the state who seeks
to encourage the passage, defeat, or modification of any legislation by
personal appearance or attendance before the House of Representatives
or the Senate, or any member or committee thereof, is a lobbyist.
(e) "Payment" or "salary" means wages or any other consideration
provided in exchange for services, but does not include reimbursement for
expenses.
(f) "Principal" means the person, firm, corporation, or other entity
which has employed or retained a lobbyist. When an association has
employed or retained a lobbyist, the association is the principal; the
individual members of the association are not principals merely because
of their membership in the association.

Rep. Chestnut announced that Speaker Johnson had been elected the (3) For purposes of this rule, the terms "lobby" and "lobbying" do not
1994 President of the National Association of Speakers of the House. include any of the following:

Special and Continuing Orders

HCR 67-C-A concurrent resolution providing for amendment of Joint
Rule One, Joint Rules of the Senate and House of Representatives, relating
to lobbyist registration and reporting; revising registration requirements;
providing definitions; requiring committee appearance records; revising
the method of registration; revising fees; revising reporting periods;
providing categories, expenditure valuation procedures, and types of
reports; revising exemptions from reporting; revising the method for
requesting opinions regarding registration; providing for informal
opinions; revising open records provisions; providing for records retention
and inspection; providing for implementation.

(a) The submission of a bid or proposal in response to an invitation
to bid or a request for proposals, any participation at a bid conference,
or any quotation of prices or description of materials or services available
in response to an inquiry.
(b) Response to an inquiry for information by any member,
committee, or staff of the Legislature.
(c) An appearance in response to a legislative subpoena.
(d) Advice or services which arise out of a contractual obligation with
the Legislature, a member, a committee, any staff, or any legislative
entity to render the advice or services where such obligation is fulfilled
through the use of public funds.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(e) Representation of a client before the House of Representatives or
the Senate, or any member or committee thereof, when the client is
subject to disciplinary action by the House of Representatives or the
Senate, or any member or committee thereof.
(4) For purposes of registration and reporting, the term "lobbyist"
does not include any of the following:
(a) A member of the Legislature.
(b) A person who is employed by the Legislature.
(c) A judge who is acting in that judge's official capacity.
(d) A person who is a state officer holding elective office or an officer
of a political subdivision of the state holding elective office and who is
acting in that officer's official capacity.
(e) A person who appears as a witness or for the purpose of providing
information at the written request of the chair of a committee,
subcommittee, or legislative delegation.
(f) A person who influences or attempts to influence a single
procurement action of the Legislature under the threshold amount for
CATEGORY THREE purchases provided in s. 287.017, Florida Statutes.
(g) A person employed by any executive, judicial, or quasi-judicial
department of the state or community college of the state who makes a
personal appearance or attendance before the House of Representatives
or the Senate, or any member or committee thereof, while that person is
on approved leave or outside normal working hours, and who does not
otherwise meet the definition of lobbyist.
(5) When a person, whether or not the person is registered as a
lobbyist, appears before a committee of the Legislature, that person must
submit a Committee Appearance Record on a form to be provided by the
respective house.
Any poroon who appoarfo bfore a mombcr, a oommittoo, or otaff of tho
Lcgiolaturo to oxpreoo support for or opposition to any logiolation muot
rogiotor with tho Joint Loegisolativ e Managomont Committeoo, unlooessat

(1) i a meomibor of tho Lo gio ulatur o;r n C.
(2)ia o employed by theo Logilaturo and ios authorized in writing to

(3) Appoaro oololy in his individual capacity and oo doeelaroo during that
appearance;
(4) Appoaro on behalf of an organization or businooo entity in e whih ho
i an officer, partner, or moembor, or by whioh heo io regularly employed, and

roaoonablo and ordinary travel oexpeonoooe, and so doelaroo during that

(6) Appoaro ao a witns or fe thpnoro purpoo of providing information at
tho written roqueoot of tho chairman of theo committee, tho oubeommittee,
or logiolativo delegation.
1.2 Method of Registration; Periodic Roporto Requir. d
(1) Each person who is required to register under Joint Senate and
House Rule 1.1 must register on forms furnished by the Joint Legislative
Management Committee, on which that person he must state, under oath,
that person's hts name, and business address, and phone number, the
name and business address of each principal that person he represents, the
areas of that person's his legislative interest, and the extent of any direct
business association or partnership that person he has with any member
of the Legislature. The Joint Legislative Management Committee or its
designee is authorized to acknowledge the oath of any person who registers
in person. Any changes to the information provided in the registration
form must be reported to the Joint Legislative Management Committee
in writing within 15 days.
(2) Any person required to register must do so with respect to each
principal prior to commencement of lobbying on behalf of that principal.

Any person required to register must renew the registration annually, in
accordance with Joint Senate and House Rule 1.3.

43

(3) If a principal has one lobbyist registered, another lobbyist for that
principal shall not be allowed to register until one of the lobbyists has
been appointed by the principal in writing to the Joint Legislative
Management Committee as the principal's designated lobbyist for
expenditure reporting. A principal may appoint its first registered
lobbyist as the designated lobbyist upon that lobbyist's registration and
may change its designated lobbyist at any time.
(4)2) In addition, Each person who registers must submit quarterly
eemienniaally to the Joint Legislative Management Committee, on forms
furnished by the committee, a signed and certified statement listing all
lobbying expenditures and sources of funds for those expenditures as
required in Joint Senate and House Rule 1.4. Reporting statements shall
be filed on April 15, July 15, October 15, and January 15 of each year and
shall include the expenditures for the periods from January 1 through
March 31, April 1 through June 30, July 1 through September 30, and
October 1 through December 31, respectively. The reporting statement
filed on January 15 shall also include cumulative totals for the previous
calendar year. A reporting statement shall be considered timely filed if
it is postmarked by the specified date. A request for an extension of time
may be filed with the Joint Legislative Management Committee, on forms
provided by the committee. The request for an extension must be signed
and indicate that expenditures were incurred for the reporting period. An
extension of 75 days shall be automatically granted as long as an
extension request is filed by the date the reporting statement is due. To
obtain an extension for a Consolidated Expenditure Report, the
designated lobbyist must request the extension, and the extension shall
cover all reports necessary to prepare the Consolidated Expenditure
Report. A otatomont covering tho period from January 1 through Juno 30
muot bo filod by July 15 of that year, and a otatomont covering the period
from July 1 through Doombor. 31 muot bo filed by January 16 of tho
ouccoding year. .Thooo otatomonto should not include oxpon.dituro for tho
rogiotrant'o lodging. moal,, or travel. A statement need not must be filed
for a eaeh reporting period even if no expenditures have been made during
that reporting period. However, the registrant shall certify in the report
due January 15 that there were no expenditures during any reporting
period for which a report was not filed. Reporting statements, when
feasible, may be filed by electronic means.
(5)kB The Joint Legislative Management Committee shall publish on
the first Monday of each regular session and weekly thereafter through the
end of that session a compilation of the names of persons who have
registered and the information contained in their registrations.
(6)44 The Joint Legislative Management Committee shall retain all
original documents submitted under this section.
(7) A person who is required to register under this rule, or who chooses
to register, shall be considered a lobbyist of the Legislature for the
purposes of ss. 112.3148 and 112.3149, Florida Statutes, relating to
reporting and prohibited receipt of gifts and honoraria.
1.3 Registration Costs; Exemptions
(1) To cover the costs incurred in administering this joint policy, each
person who registers under Joint Senate and House Rule 1.1 must pay an
annual a biennial registration fee to the Joint Legislative Management
Committee. The annual period runs from January 1 to December 31.
These fees must should be paid at the time of registration; provided,
however, thsooo poroono who have already rogiotorod with th Houo orZ

to avoid rogiotoring again.

(2) The following persons are exempt from paying the fee, provided
they are designated in writing by the agency head or person designated
in this subsection:
(a) Two employees of each department of the executive branch
created under chapter 20, Florida Statutes.
(b) Two employees of the Game and Fresh Water Fish Commission.
(c) Two employees of the Executive Office of the Governor.
(d) Two employees of the Commission on Ethics.
(e) Two employees of the Florida Public Service Commission.
(f) Two employees of the judicial branch designated in writing by the
Chief Justice of the Florida Supreme Court.

November 3, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

ifIUnm %A, WVpL,

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Any ploron who rcAl.iv. no ompAonation for hio appoaranco* other

than reaonab roimbursom ont for- hios travel and mea&e ofpFona.
( Abn)fy overpamntal 4off-iei-al clcctcd in the Stateelf : Florida.

-)iwo cmpioysco 1r oacn otato agency who ar adosignata in
by the hoad of tho agency.

Per-sons who are not rcauired to register under Joint Senate and Houoo

Rule 1.1, but;. who chooo to do oo, hall
houo porbicnnium.

nay a pro ,cnx Ct &of $ 10:.00 per

(3)(W- The annual fee is up to $50 per each house for a person to
register to represent one principal and up to an additional $10 per house
for each additional principal that the person registers to represent. The
amount of each fee shall be established annually by the Joint Legislative
Management Committee. The fees set shall be adequate to ensure
operation of the lobbyist registration and reporting operations of the
Joint Legislative Management Committee. The fees collected by the Joint
Legislative Management Committee under this joint policy shall be
deposited in the State Treasury and credited to the appropriation for
legislative expenses specifically to cover the costs incurred in administering
this joint policy.
1.4 Periodic Reports Required
(1) MANNER OF REPORTING.-All lobbying expenditures shall be
reported on an Individual Lobbyist's Expenditure Report or a
Consolidated Expenditure Report. An "expenditure" means a payment,
distribution, loan, advance, reimbursement, deposit, or anything of value
made or controlled, directly or indirectly, by a lobbyist or principal for the
purpose of lobbying. Each reporting individual shall make a good faith
effort to report an expenditure and to report it in the appropriate
category. If an expenditure fits in two or more categories, it shall be
reported in the category to which the expense primarily relates. When an
expenditure is not within any defined category, it should be reported in
the "Other" category. Expenditures shall be accounted for and reported
on either a cash or accrual accounting basis. The basis selected shall be
designated in the space provided on the applicable expenditure report
and shall be the basis consistently used, during the entire calendar year,
for reporting quarterly and annual expenditures.
(2) GOODWILL EXPENDITURES.-An expenditure shall be
considered to have been intended to be for the purpose of engendering
goodwill if it is a gift, an entertainment, any food or beverage, or any other
item or service of similar personal benefit to a member or an employee of
the Legislature unless the member or employee is a relative of the
lobbyist. A relative is an individual who is related to the member or
employee as father, mother, son, daughter, brother, sister, uncle, aunt,
first cousin, nephew, niece, husband, wife, father-in-law, sister-in-law,
stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister,
half brother, half sister, grandparent, great grandparent, grandchild,
great grandchild, step grandparent, step great grandparent, step
grandchild, or step great grandchild; any person who is engaged to be
married to the member or employee or who otherwise holds himself or
herself out as or is generally known as the person whom the member or
employee intends to marry or with whom the member or employee intends
to form a household; or any other natural person having the same legal
residence as the member or employee.
(3) EXPENDITURE CATEGORIES.-The categories of
expenditures used in this rule are as follows:
(a)1. "Communications" means dissemination of information,
including, but not limited to, by means of the following:
a. Audio-visual materials; and
b. Signs, placards, banners, buttons, promotional materials, and other
display materials;
together with any associated production services.
2. This category does not include media advertising, publications, or
research.
(b) "Entertainment" means amusement or recreation, including, but
not limited to, sporting, hunting, fishing, theatrical, artistic, cultural, and
musical activities or events.

(c) "Food and Beverages" means meals, snacks or other edible
substances, or liquids for drinking, including services associated
therewith.

(d) "Lodging" means sleeping or living accommodations for an
wr"t'g individual for one or more nights.

I

44

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November 3, 1993

r. I I I I I

7 1114 1 v

9% A.-- --

(e) "Media Advertising" means newspaper and magazine advertising,
radio and television advertising, and outdoor advertising, including
production services and copyrighting services.
(f) "Other" means any item or service that is not included within one
of the specified categories, but does not include any item or service that
is not required by law to be reported.
(g) "Publications" means mass-produced, printed materials,
including, but not limited to, magazines, newsletters, brochures, or
pamphlets, which expressly encourage persons to communicate with
members or employees of the Legislature to influence the official actions
of members or employees of the Legislature or which are designed to
communicate with members or employees of the Legislature.
(h) "Research" means procurement of information relating to a
specific issue, regardless of the form or medium in which that information
is provided, including, but not limited to, surveys, bill-tracking services,
information services, periodicals, and consultants or consultant services
to gather data or statistics.
(i) "Special Events" means large-scale occurrences, including, but not
limited to, receptions, banquets, dinners, or legislative days, to which
more than 250 persons are invited and for which the expenditures
associated with hosting the occurrence are negotiated with a catering
service or facility at a single, set price or which include multiple
expenditure categories.
(j) "Travel" means transporting an individual from one place to
another, regardless of the means used.
(4) ITEMS THAT ARE NOT EXPENDITURES.-The term
"expenditure" does not include:
(a) Contributions or expenditures reported pursuant to chapter 106,
Florida Statutes; campaign-related personal services provided without
compensation by individuals volunteering their time; or any other
contribution or expenditure by a political party.
(b) A lobbyist's or principal's salary, office expenses, and personal
expenses for lodging, meals, and travel. If the principal is a firm,
corporation, association, or person, other than a natural person, the office
expenses of the entity and the salaries of the officers of the entity, as well
as expenses for their lodging, meals, and travel, are not lobbying
expenditures. Office expenses include, but are not limited to, payment or
obligation for rent or mortgage, utilities, postage, telephone service,
employees' salaries, furniture, copies, computers, software, paper
supplies, and custodial or maintenance services. Communications,
publications, and research are office expenses if performed or produced
by the lobbyist or principal or their employees. If those functions are
performed by independent contractors, other than the lobbyist or
principal or an affiliate controlled by the principal, they are expenditures
reportable under the appropriate expenditure category.
(c) If an expense is incurred for a nonlobbying business purpose and
the product of that expense is later used for a lobbying purpose, a
reportable expenditure is not created.
(5) VALUATION OF EXPENDITURES.-
(a) In calculating the amount of aggregate expenditures, a lobbyist or
principal may, prior to prorating, round each entry up or down to the
nearest $5. A record is not required to be maintained for any amount that
rounds to zero.
(b) The amount to be reported for an expenditure shall be determined
using the actual cost to the lobbyist or principal or other person making
the payment on behalf of the lobbyist or principal, less any compensation
received by such lobbyist or principal in payment for the object of the
expenditure. If a lobbyist or principal makes a contribution to an
expenditure by another lobbyist or principal, the person making the
contribution shall report the amount of the contribution as an
expenditure, and the person receiving the contribution shall subtract the

JOURNAL OF THE HOUSE OF REPRESENTATIVES

value of the contribution from the expenditure to be reported by that
person.
(c) When a lobbyist has multiple principals, expenditures made for
the purpose of engendering goodwill that are not attributable to one
principal may be prorated among the lobbyist's principals or may be
attributed to one principal.
(d) When a lobbyist has multiple principals, expenditures for
research or other expenditures that may benefit several principals may
be reported to the principal for whom the research was done or other
expenditures incurred or prorated to those principals that may benefit
from the research or other expenditures.
(e) The amount reported as an expenditure shall not include the
amount of any additional expenses that are required as a condition
precedent to eligibility to make an expenditure if the amount expended
for the condition precedent is primarily intended to be for a purpose other
than lobbying or if it is paid to a charitable organization. If the amount
expended for the condition precedent is primarily intended to be for a
lobbying purpose and is not paid to a charitable organization, the total
amount of the expenditure shall be reported as a lobbying expenditure.
Initiation fees, membership fees, and booster fees are examples, although
not exclusive examples, of additional expenses that are regularly required
as conditions precedent for eligibility to make other expenditures.
(f) A person providing transportation in a private automobile shall be
considered to be making an expenditure at the rate of 20 cents per mile,
and the amount of an expenditure made for transportation provided in
other private conveyances shall be determined in accordance with the
provisions of s. 112.3148(7), Florida Statutes.
(g) A person providing lodging in a private residence shall be
considered to be making an expenditure of $29 per night.
(h) Expenditures made for more than one person may be attributed,
on a pro rata basis, among all of the persons for whom the expenditure
is made.
(6) INDIVIDUAL LOBBYIST'S EXPENDITURE REPORT.-
(a) When a principal has only one lobbyist, the lobbyist shall file
quarterly, as provided in Joint Senate and House Rule 1.2, an Individual
Lobbyist's Expenditure Report on forms provided by the Joint Legislative
Management Committee. The report shall include the name of the
lobbyist and the name of the principal on whom the report is prepared.
Expenditures for the quarter shall be reported by the following
categories: Food and Beverages; Entertainment; Research;
Communications; Media Advertising; Publications; Travel; Lodging;
Special Events; and Other. For each expenditure category, the report
must identify the amount paid directly by the lobbyist, directly by the
principal, initiated or expended by the lobbyist and paid for by the
principal, or initiated or expended by the principal and paid for by the
lobbyist. The report filed on January 15 shall contain cumulative totals
for the calendar year.
(b) A lobbyist shall file an Individual Lobbyist's Expenditure Report
for each principal represented, unless a Consolidated Expenditure
Report is required to be filed for that principal.
(7) CONSOLIDATED EXPENDITURE REPORT.-
(a) When a principal has two or more lobbyists, the principal shall
designate one lobbyist who will be responsible for filing the Consolidated
Expenditure Report. Every lobbyist so designated shall file quarterly, as
provided in Joint Senate and House Rule 1.2, a Consolidated
Expenditure Report on forms provided by the Joint Legislative
Management Committee. The Consolidated Expenditure Report shall
include the name of the principal and the names of all of the lobbyists
for that principal. A cumulative total by the expenditure categories of
Food and Beverages; Entertainment; Research; Communications; Media
Advertising; Publications; Travel; Lodging; Special Events; and Other
shall be provided for all lobbyists on the report. The Consolidated
Expenditure Report filed on January 15 shall contain cumulative totals
for the calendar year.

designated lobbyist, who shall attach all the Individual Lobbyist's
Expenditure Reports for that principal, including the Individual
Lobbyist's Expenditure Report of the designated lobbyist, to the
Consolidated Expenditure Report. The designated lobbyist is responsible
for attaching each Individual Lobbyist's Expenditure Report to the
Consolidated Expenditure Report and completing the Consolidated
Expenditure Report. The designated lobbyist is responsible for making a
good faith effort to obtain the figures reported as lobbying expenditures
made by the principal; however, the principal is responsible for the
accuracy of the figures submitted to the designated lobbyist by the
principal. The designated lobbyist is not responsible for the failure of
another lobbyist to provide the Individual Lobbyist's Expenditure Report
to the designated lobbyist and is not responsible for the contents of any
Individual Lobbyist's Expenditure Report submitted by another lobbyist.
(c) When there are multiple lobbyists, only the designated lobbyist is
to report expenditures made directly by the principal on the
Consolidated Expenditure Report. When there are multiple lobbyists,
only unduplicated amounts should be reported for expenditures initiated
or expended by the lobbyist and paid for by the principal.
1.5 M4 Questions Regarding Registration
(1) A person may request in writing an informal opinion from the
general counsel of the Joint Legislative Management Committee as to the
application of this rule to a specific situation. The general counsel shall
issue the opinion within 10 days after receiving the request. The informal
opinion may be relied upon by the person who requested the informal
opinion. A copy of each informal opinion which is issued shall be provided
to the presiding officer of each house. The committees designated under
s. 11.045(4), Florida Statutes, may revise any informal opinion rendered
by the general counsel through an advisory opinion to the person who
requested the informal opinion. The advisory opinion shall supersede the
informal opinion as of the date the advisory opinion is issued.
(2) Persons in doubt about the applicability or interpretation of this
rule may submit in writing the facts for an advisory opinion to the
committee of the respective house designated pursuant to s. 11.045(4),
Florida Statutes, and may appear in person before the committee in
accordance with s. 11.045(4), Florida Statutes as to whether they arc
required to rogitor May rquoot an opinion from th. Sp,,eaker of the Houcc
or tho President of the Senate.
1.6 4 Open Records
All of the lobbyist registration and expenditure reports received by the
Joint Legislative Management Committee reeerd shall be available for
public inspection; and for duplication at reasonable cost.
1.7 Records Retention and Inspection
Each lobbyist and each principal shall preserve for a period of 4 years
all accounts, bills, receipts, computer records, books, papers, and other
documents and records necessary to substantiate lobbying expenditures.
Upon receipt of a complaint made pursuant to the Senate Rules or Rules
of the House of Representatives, any such documents and records may be
inspected when authorized by the President of the Senate or the Speaker
of the House of Representatives, as applicable. The person authorized to
perform the inspection shall be designated in writing and shall be a
member of The Florida Bar or a certified public accountant licensed in
Florida. Any information obtained by such an inspection may only be
used for purposes authorized by law, this rule, Senate Rules, or Rules of
the House of Representatives. The use of such information to sanction a
person for violation of any law, this rule, Senate Rules, or Rules of the
House of Representatives is an authorized use of that information. Any
employee who uses that information for an unauthorized purpose is
subject to discipline. Any member who uses that information for an
unauthorized purpose is subject to discipline under the applicable rules
of each house. The right of inspection may be enforced by appropriate
writ issued by any court of competent jurisdiction.
Section 2. In order to implement Rule One of the Joint Rules of the
Senate and House of Representatives, as amended by this concurrent
resolution:

(b) Each lobbyist identified on the Consolidated Expenditure Report (1) For the period from July 1, 1993, to September 30, 1993, the
must provide an Individual Lobbyist's Expenditure Report to the statement of expenditures required by s. 11.045, Florida Statutes (1991),

45

November 3, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

shall be filed no later than January 15, 1994. For the period from October
1, 1993, to December 31, 1993, the applicable lobbyist report shall be filed
as provided in Joint Senate and House Rule 1.4; however, cumulative
totals are not required for calendar year 1993.
(2) Until January 1, 1995, the annual fee is $50 per each house of the
Legislature for a person to register to represent a principal and an
additional $10 per house for each additional principal that the person
registers to represent.
(3) For persons who have paid the registration fee for the period July
1, 1992, to June 30, 1994, the registration is valid through June 30, 1994,
and those persons may renew their registration for calendar year 1994 at
a rate of one-half the rate specified in subsection (2). Those renewal
registrations expire on December 31, 1994.
(4) All persons who were required to register under Joint Senate and
House Rule One as it existed on October 1, 1993, and who registered
between that date and the date of adoption of the revisions to Joint
Senate and House Rule One by this concurrent resolution, but who, under
the revisions to Joint Senate and House Rule One by this concurrent
resolution are no longer required to register, may, within 14 days after
adoption of the revisions to Joint Senate and House Rule One by this
concurrent resolution, withdraw from registration and receive a refund of
all fees paid.
(5) All persons who were not required to register under Joint Senate
and House Rule One as it existed on October 1, 1993, but who are required
to register under the revisions to Joint Senate and House Rule One by this
concurrent resolution, are given until January 1, 1994, to comply with the
registration requirements of this rule.
-was read the second time by title.

Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Mackenzie
Mackey

Manrique
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt

Rayson
Reddick
Roberts
Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith

Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Nays-None
So the bill passed and was immediately certified to the Senate.

Recessed
On motion by Rep. Wallace, the House stood in informal recess at
3:20 p.m., to reconvene upon the call of the Speaker.

Reconvened
The House was called to order by the Speaker at 4:44 p.m. A quorum was
present.

Messages from the Senate

The Committee on Rules & Calendar offered the following amendment: The Honorable Bolley L. Johnson, Speaker

Amendment 1-On page 18, lines 22-25, strike all of said lines and
insert: Rules, or Rules of the House of Representatives, which purposes
may include the imposition of sanctions against a person subject to this
rule or Senate Rules or the Rules of the House of Representatives. Any
Rep. Crady moved the adoption of the amendment, which was adopted.
The question recurred on the adoption of HCR 67-C, as amended, which
was adopted and under the rule, immediately certified to the Senate.

By the Committee on Corrections; Representative Smith-
HB 113-C-A bill to be entitled An act relating to technical
clarifications and statutory conformance to correctional issues contained
in the "Safe Streets Initiative of 1994"; amending s. 921.001, F.S.; deleting
a sentencing selection provision; adding conditional medical release and
emergency control release to the listing of authorized release from
incarceration for persons convicted of crimes committed on or after
January 1, 1994; amending s. 921.0011, F.S.; clarifying that control release
includes emergency control release; amending s. 921.188, F.S.; authorizing
local detention facilities for certain offenders; amending s. 947.1405, F.S.;
providing the conditional release program for inmates convicted of crimes
committed on or after January 1, 1994; providing an effective date.
-was read the first time by title. On motions by Rep. Smith, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title and the third time by title. On passage, the vote was:
Yeas-116

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd

Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch

Crady
Crist
Davis
Dawson
De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia

Gay
Geller
Glickman
Gordon
Graber
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill

I am directed to inform the House of Representatives that the Senate has
passed, as amended, SB 12-C and requests the concurrence of the House.
Joe Brown, Secretary

By Senator Jennings and others-
SB 12-C-A bill to be entitled An act relating to workers'
compensation; amending s. 440.015, F.S.; revising the legislative intent;
amending s. 440.02, F.S.; revising certain definitions; amending s. 440.05,
F.S.; providing for election and revocation of election of an exemption;
amending s. 440.055, F.S.; requiring notice of noncoverage at worksites
under certain circumstances; amending s. 440.09, F.S.; providing for extent
of workers' compensation coverage; requiring that injuries be established
by medical evidence; clarifying compensation for subsequent injuries
related to preexisting conditions; providing presumptions that intoxication
or drug use caused certain injuries; amending s. 440.092, F.S.; excluding
from certain travel benefits certain travel to and from work; amending s.
440.10, F.S.; deleting a requirement that contractors or subcontractors
show proof of workers' compensation coverage before receiving a building
permit; providing a penalty for employers who fail to secure required
compensation; deleting a penalty; providing circumstances under which a
person is presumed to be an independent contractor; amending s. 440.101,
F.S.; clarifying legislative intent relating to drug-free workplaces;
amending s. 440.102, F.S.; clarifying and amending drug-free workplace
program provisions; providing definitions; amending notice provisions;
providing employer requirements for employer eligibility for certain
discounts; providing requirements for bidding for a contract with the state,
a county, or a municipality; reassigning certain responsibilities of the
Department of Health and Rehabilitative Services for setting testing
standards and overseeing testing; requiring a carrier or insurer to pay for
treatment that occurs before a denial of benefits and to give notice to
health care providers; allowing random drug testing by a public employer;
relieving employers of civil liability, as specified; providing for reassigning
an employee who tests positive for drugs or is in a drug-rehabilitation
program; creating s. 440.103, F.S.; requiring contractors, as a condition to
receiving a building permit, to show proof of having secured compensation
for their employees; providing for a certificate of such proof; creating s.
440.104, F.S.; providing for actions for damages by losers of competitive
bidding against certain winners of such bidding; specifying recovery of
damages; providing for attorney's fees; providing exceptions; providing for

November 3, 1993

46

JOURNAL OF THE HOUSE OF REPRESENTATIVES

joinder in such actions; barring certain actions under certain
circumstances; creating s. 440.105, F.S.; prohibiting certain activities;
providing penalties; creating s. 440.0151, F.S.; requiring that the Bureau
of Workers' Compensation Insurance Fraud of the Division of Insurance
Fraud of the Department of Insurance establish a toll-free telephone
number to receive reports of workers' compensation fraud; providing civil
immunity for persons who make such a report; providing criminal
penalties; creating s. 440.1055, F.S.; providing for claims forms to carry a
notice of penalty for including false or misleading information on a
statement of claim, as defined; creating s. 440.106, F.S.; providing civil
remedies under certain circumstances; authorizing the Division of
Workers' Compensation of the Department of Labor and Employment
Security; to impose certain penalties; creating s. 440.107, F.S.; providing
powers of the division to enforce compliance with coverage requirements;
authorizing the division to assess penalties; creating s. 440.108, F.S.;
providing for duty to report for certain individuals; authorizing the Bureau
of Workers' Compensation Insurance Fraud to investigate and report;
amending s. 440.13, F.S.; revising provisions related to providing medical
services and supplies; providing definitions; requiring employers to furnish
medical treatment; providing for provider eligibility for payment;
providing for authorizations for payments to providers; requiring health
care providers to submit certain reports to carriers under certain
circumstances; providing for independent medical examinations; providing
for utilization review; providing for resolution of utilization and
reimbursement disputes; providing for penalties for overutilization or
certain violations of ch. 440, F.S.; providing for certification of expert
medical advisors; requiring the division to contract with such advisors to
provide peer review or medical consultation under certain circumstances;
providing procedures for expert medical advisors; relieving such advisors
of legal liability; requiring carriers to timely compensate such an advisor;
providing penalties for failure to compensate; providing for audits by the
division; providing for division jurisdiction; creating a three-member panel
to adopt schedules of reimbursement allowances; providing for per diem
reimbursement for hospital inpatient services; requiring the division to
conduct a study of all phases of the health care delivery system; providing
for managed care; providing for removal of physicians from certain lists;
providing for payment of medical fees; providing for developing and
implementing state practice parameters for outpatient services for
workers' compensation claimants; creating s. 440.134, F.S., the "Workers'
Compensation Managed Care Organization Act"; providing definitions;
providing for the Department of Insurance to administer this section and
to adopt and enforce rules; providing that a workers' compensation
managed care organization, or WCMCO, is exempt from the Florida
Insurance Code; providing that this section is exclusively applicable to
WCMCOs; requiring a certificate of authority for owning, operating, or
controlling a WCMCO or providing certain services; providing
requirements for obtaining or renewing a certificate of authority; requiring
an annual report; providing fees for licensure and license renewal; requiring
a WCMCO to have a quality assurance program; providing requirements
for changes of ownership; requiring notice of and prerequisites to
expanding the WCMCO's geographic area; specifying the minimum net
worth that a WCMCO must maintain; prohibiting certain ownership
interests in or by a WCMCO; requiring such organization to disclose
certain financial interests; providing for suspending, revoking, or refusing
to renew certificates of authority and requiring notice thereof; providing
for the maximum duration of suspension of a certificate, for obligations of
the WCMCO during that period, and for reinstatement; providing
obligations of carriers during suspension or revocation of a WCMCO's
certificate of authority; providing for administrative fines; providing
penalties for operating without a valid certificate of authority; providing
for maintenance of and access to records; specifying other laws applicable
to WCMCOs; requiring forms to be filed with and approved by the
Department of Insurance; setting rate limits; providing for periodic
examination; providing for the disposition of fees; prohibiting WCMCOs
from transacting insurance business without authorization; providing
penalties for a false or fraudulent application and for other violations of
this section; requiring medical services and supplies to be provided in
specified circumstances; providing that ch. 440, F.S., applies to certain
health maintenance organizations under specified conditions; amending s.

440.135, F.S.; amending provisions relating to pilot programs for medical
and remedial care; allowing such programs to combine other health
insurance and workers' compensation insurance into 24-hour health

insurance coverage; amending s. 440.15, F.S.; clarifying an employee's
burden in proving permanent total disability; revising guidelines for
payments to employees who are totally disabled; providing for continued
vocational evaluations or testing under certain circumstances; requiring
that notice of evaluations or testing be given to an employee; providing
procedures for withholding payments from an employee who refuses
evaluation or testing; requiring claimants to prove permanent total
disability in certain circumstances; prohibiting findings of permanent total
disability for sheltered employment under certain circumstances;
excluding from benefits employees who refuse to apply for or cooperate
with application for social security benefits; providing for establishment of
a uniform permanent impairment rating schedule; providing for
determinations of permanent impairment by certain persons; providing for
supplemental benefits, which are regulated solely by this section; deleting
provisions relating to wage-loss benefits; amending procedural
requirements relating to benefits for temporary partial disability;
providing for repayment of indemnity benefits for which there was no
entitlement; providing for the coordination of benefits; amending s. 440.16,
F.S.; increasing required amount for funeral expenses; amending s. 440.185,
F.S.; clarifying procedures related to notice of injury or death; deleting a
requirement that the division monitor certain provision of benefits;
deleting provisions relating to an electronic reporting system; amending s.
440.19, F.S.; clarifying procedures for filing claims for benefits; providing
for withdrawal of claims; providing for amending claims; providing
conditions to a motion to dismiss; deleting a requirement that the division
assist certain injured employees; deleting provisions relating to requiring
a judge of compensation claims to mail claims to the division and requiring
the division to facilitate the resolution of conflicts in workers'
compensation cases; creating s. 440.191, F.S.; creating the Employee
Assistance Office in the division; providing procedures, duties, and
responsibilities of the office; amending s. 440.20, F.S.; amending conditions
of payment of benefits; requiring the division to monitor carriers to assure
timely payment; providing for fines; deleting a requirement that the
division assess a fine under certain circumstances; prohibiting the payment
of attorney's fees; amending provisions related to lump-sum payments;
providing applicability of this section to all claims settlements after a
specified date; amending s. 440.207, F.S.; amending requirements for
workers' compensation system guide; amending s. 440.21, F.S.; deleting a
penalty related to invalid employer-employee agreements; creating s.
440.211, F.S.; authorizing certain collective bargaining agreements;
providing criteria; amending s. 440.25, F.S.; clarifying provisions requiring
a pretrial hearing and a final hearing under certain circumstances;
providing for mediation; providing procedures for expediting resolution of
claims; amending procedures for resolution of claims; providing for
uniform local rules for workers' compensation; amending s. 440.29, F.S.;
requiring receipt into evidence by a judge of compensation claims of certain
medical reports; amending s. 440.32, F.S; providing for assessing costs and
attorney's fees against an attorney who frivolously brings or maintains
proceedings; amending s. 440.34, F.S.; amending limitations on attorney's
fees that may be approved as reasonable for services to claimants and to
defendants; prohibiting carriers from recouping attorney's fees by specified
means; creating s. 440.345, F.S.; requiring reporting of attorney's fees to the
division; amending s. 440.38, F.S.; revising and clarifying provisions
requiring security for payments of compensation; reassigning certain
oversight functions from the division to the Department of Insurance;
providing for the revocation of an employer's right to self-insure and for
alternatives to revocation; providing additional options for employer
coverage; amending provisions for indemnity benefits; requiring specified
life-insurance benefits; requiring carriers to maintain claims adjusters in
this state; deleting a penalty for failure to comply; amending s. 440.381,
F.S.; revising a penalty for understating payroll or misrepresenting
employee duties; amending s. 440.385, F.S.; amending provisions
regulating the Florida Self-Insurers Guaranty Association; reassigning
certain functions from the Department of Labor and Employment Security
to the Department of Insurance; amending s. 440.386, F.S.; assigning to the
Department of Insurance certain functions relating to the insolvency of an
individual self-insurer; creating s. 440.4416, F.S.; creating a state Workers'
Compensation Advisory Council; providing for council duties,
membership, meetings, and reimbursement; creating s. 440.4417, F.S.;

creating a state Workers' Compensation Rules Advisory Council; providing
for council duties, membership, meetings, and reimbursements; amending
s. 440.45, F.S.; providing for nominations of judges of compensation claims

November 3, 1993

47

48 JOURNAL OF THE HOUSE

by the Workers' Compensation Judicial Commission; providing
qualifications for membership on the commission; providing that the
Governor appoints commission members; providing that the judicial
commission has the power to investigate and make recommendations to the
Governor relating to the fitness for office of judges of compensation claims,
and to impose sanctions; providing the Governor with power to remove
such judges for specified causes; providing for review of the judicial
commission's actions; placing restrictions on such a judge who vacates his
judicial office; revising the duties of the Chief Judge; requiring the Chief
Judge to report to the judicial commission on the performance of each
judge; amending ss. 440.56 and 442.115, F.S.; requiring a client of a help
supply services company to include certain employees of that company in
the client's employee safety training program; amending s. 440.49, F.S.;
revising provisions relating to reemployment of injured workers and
rehabilitation; focusing on limiting the liability for subsequent injury
through the Special Disability Trust Fund; providing definitions;
providing legislative intent; amending definitions; providing a deductible;
providing for temporary compensation and medical benefits, and allowing
partial reimbursement to the employer from the trust fund; providing for
the effect that the employer's knowledge of a preexisting condition has
upon his reimbursement; revising the list of compensable injuries; revising
the criteria by which claims for reimbursement are accepted; providing for
assessments to maintain the trust fund; providing for the applicable law
for purposes of determining entitlement to reimbursement; creating s.
440.491, F.S.; providing for reemployment status reviews and reports;
providing for reemployment assessments; providing for medical care
coordination and reemployment services; providing for training and
education; specifying provider qualifications; requiring the division to
monitor selection of providers, provision of services, and carrier practices;
restricting adjudications of permanent and total disability; amending s.
440.50, F.S.; providing for the funding of the Bureau of Workers'
Compensation Fraud within the Department of Insurance from the
Workers' Compensation Administration Trust Fund; amending ss. 440.51,
440.515, F.S.; providing for the Department of Insurance to assume certain
administrative functions, including auditing self-insurers and maintaining
confidential reports; amending s. 440.572, F.S.; correcting a cross-
reference; amending s. 440.59, F.S.; requiring the Department of Labor and
Employment Security to make an annual report on the administration of
ch. 440, F.S., to specified officials; creating s. 440.593, F.S.; providing for
the division to establish an electronic reporting system; providing for the
division to periodically examine each carrier; creating the "Florida
Occupational Safety and Health Act," consisting of ss. 442.001; 442.002,
442.003, 442.004, 442.005, 442.006, 442.007, 442.008, 442.009, 442.0105,
442.011, 442.012, 442.013, 442.014, 442.015, 442.016, 442.017, 442.018,
442.019, 442.0195, 442.021, 442.022, F.S.; creating s. 442.001, F.S.;
providing a short title; creating s. 442.002, F.S.; providing definitions;
creating s. 442.003, F.S.; providing legislative intent; transferring,
amending, and renumbering s. 440.09(5), F.S., as s. 442.004, F.S.; providing
for rulemaking governing safety inspections and consultations;
transferring, amending, and renumbering s. 440.152, F.S., as s. 442.005,
F.S.; providing for the division to make a continuous study of occupational
diseases; repealing s. 440.46(2), (3), F.S., and transferring, amending, and
renumbering s. 440.46(1), F.S., as s. 442.006, F.S.; authorizing the division
to enter and inspect places of employment for purposes of compliance;
providing a penalty for refusing to allow an inspection; creating s. 442.007,
F.S.; providing employers' responsibilities for employees' safety; creating
s. 442.008, F.S.; providing the division with the authority to investigate
safety at places of employment and to prescribe means of preventing
accidents and occupational diseases; creating s. 442.009, F.S.; providing the
division and its representatives with a right of entry to make inspections;
creating s. 442.0105, F.S.; requiring employers whose employees have a
high frequency or severity of work-related injuries to implement a safety
and health program, for division approval; providing for rulemaking;
creating s. 442.011, F.S.; requiring carriers to provide safety consultations
to their policyholders on request; requiring a report to the division;
requiring the division to set out criteria for, and to approve, safety
programs; creating s. 442.012, F.S.; requiring employers to establish

workplace safety committees; requiring the division to adopt certain rules
relating to committee membership and duties and to employer
recordkeeping; requiring employees to receive their regular wages while
engaged in committee activities; creating s. 442.013; F.S.; providing for
employer penalties; creating s. 442.014, F.S.; providing for cooperation

I

providing that workers' compensation and employer's liability insurance
is subject to certain notice provisions; creating part V of ch. 631, F.S., the
"Florida Self-Insurance Fund Guaranty Association Act," consisting of ss.
631.90, 631.905, 631.91, 631.915, 631.92, 631.925, 631.93, 631.935, 631.94,
631.945, 631.95, 631.955, 631.96, 631.965, 631.97, 631.975, 631.98, 631.985,

E OF REPRESENTATIVES November 3, 1993

between the division and the Federal Government for specified purposes;
creating s. 442.015, F.S.; providing penalties for certain employers who fail
to implement a safety and health program; creating s. 442.016; F.S.;
providing for paying the expenses of administering this chapter; creating
s. 442.017, F.S.; providing a criminal penalty for an employer or owner that
refuses to allow entry and inspections by division representatives; creating
s. 442.018, F.S.; providing employees' rights and responsibilities; creating
s. 442.019, F.S.; providing for compliance; creating s. 442.20, F.S.;
prohibiting making false statements to carriers; creating s. 442.021, F.S.;
providing penalties for carriers under certain circumstances; creating s.
442.022, F.S.; providing preemptive authority to the division to adopt
certain rules; creating s. 442.023, F.S.; prohibiting certain acts; providing
penalties; providing a statute of limitations; amending s. 489.115, F.S.;
prescribing for contractors' continuing education curricula to contain
information on workers' compensation and workplace safety; transferring
the self-insurance regulatory functions of the Department of Labor and
Employment Security to the Department of Insurance; preserving current
administrative rules; providing that the validity of current legal actions is
not affected by the transfer; authorizing group self-insurers who have
certificates of authority under current law to receive certificates of
authority under this act; creating s. 624.461, F.S.; defining the term "self-
insurance fund"; amending s. 624.462, F.S.; prohibiting a commercial self-
insurance fund from participating in the Florida Self-Insurance Fund
Guaranty Association; transferring, amending, and renumbering s. 440.57,
F.S., as s. 624.4621, F.S.; providing for group self-insurance funds;
transferring administrative responsibilities from the division to the
Department of Insurance; requiring participation in the Florida Self-
Insurance Fund Guaranty Association; transferring, amending, and
renumbering s. 440.575, F.S., as s. 624.4622, F.S.; providing for local
government self-insurance funds; correcting cross-references; transferring,
amending, and renumbering s. 440.571, F.S., as s. 624.46225, F.S.;
correcting a cross-reference; amending ss. 624.463, 624.474, 624.476,
624.480, 624.482, 624.484, 624.486, 624.488, F.S.; replacing the term
"commercial self-insurance fund" with the term "self-insurance fund" in
provisions relating to the conversion of such a fund into a domestic mutual
insurer, relating to such a fund's payment of dividends or refunds to its
members, relating to allowing assessments to be made upon such funds for
deficiencies, relating to impaired funds, relating to filing, approval, and
disapproval of forms, relating to the making and use of rates, relating to
the registration of the funds, relating to filing, approval, and disapproval
of forms, relating to the registration of the fund's agent, relating to periodic
examinations of the fund, and relating to the applicability of related laws
to the funds; creating s. 624.4741, F.S.; providing venue in assessment
actions brought by a self-insurance fund; transferring, amending, and
renumbering s. 440.58, F.S., as s. 624.483, F.S.; reassigning, from the
division to the Department of Insurance, certain duties relating to self-
insurers' payments of delinquent premiums and assessments; transferring,
amending, and renumbering s. 440.5705, F.S., as s. 624.487, F.S.; correcting
cross-references to conform to this act; reassigning, from the Department
of Labor and Employment Security to the Department of Insurance, duties
relating to enforcing specified insurance provisions and rulemaking;
amending s. 627.041, F.S.; amending the definition of the term "insurer" to
include group self-insurance funds; creating s. 627.212, F.S.; providing for
carriers voluntarily to impose a workplace safety program surcharge on
certain policyholders or fund members; providing for rulemaking;
amending s. 627.311, F.S.; providing for joint underwriters and joint
reinsurers; providing purposes and requirements; providing for supervision
of the joint underwriting plan by a board of governors; providing board
members' qualifications and terms of office; requiring a plan of operation
and prescribing contents of the plan; providing for funding the plan;
providing qualifications necessary for insurance under the plan; requiring
an independent actuarial certification; providing procedures in case of
deficits; allowing the plan to retain excess premiums and assessments;
providing liability for losses arising after a specified date; providing that
plan losses are not to come from insurers; providing that the joint
underwriting plan is not a state agency, except as specified; providing
alternatives for paying premium taxes; amending s. 627.4133, F.S.;

_ ____ __ __ _

JOURNAL OF THE HOUSE OF REPRESENTATIVES

631.99, 631.995, F.S.; providing a title; providing purposes; providing for
liberal construction; providing definitions; creating the association and
fund; providing for an organizational meeting and a board of directors;
providing powers and duties of the association; providing for assessments;
requiring a plan of operation to be submitted to the department; specifying
plan contents; providing for the prevention of insolvencies; providing for
open association records and open meetings; providing immunity to the
association and to the Department of Insurance; prohibiting certain
advertisements or solicitations; providing powers of the Department of
Insurance; providing liability of members of an impaired self-insurance
fund for unpaid claims; providing for certain effects of paid claims;
providing for a stay of proceedings and for reopening of default judgments;
prohibiting an award of attorney's fees, except as specified; providing for
assumption of liability relating to claimants covered by the Certified
Pulpwood Dealers Self-Insurers Fund; requiring the district court of
appeal to use the state video teleconferencing network to facilitate access
to courts; amending s. 772.102, F.S., to include violations of ss. 440.106 and
440.107, F.S., as a criminal activity; amending s. 27.34, F.S., authorizing the
Insurance Commissioner to contract with state attorneys to prosecute
certain criminal violations and to contribute funds to pay salaries and
expenses of assistant state attorneys; amending s. 628.161, F.S.; providing
that certain self-insurer's funds may become mutual insurers, by meeting
specified requirements and submitting a plan of reorganization to the
Department of Insurance for its approval; providing that certain
contingent liability of the self-insurer's fund members or former members
is extinguished, as specified; repealing ss. 440.37, 440.38, 440.48, 440.56,
F.S., relating to misrepresentation and fraudulent activity for the purpose
of obtaining or denying workers' compensation benefits, relating to
security for compensation, relating to an annual report of the
administration of ch. 440, F.S., and relating to workplace safety rules and
provisions; amending s. 628.6013, F.S., relating to converted self-insurance
funds; providing a procedure for resolving maximum medical improvement
or permanent impairment disputes; providing an effective date.
-was read the first time by title. On motion by Rep. Lippman, the rules
were waived by the required two-thirds vote and the bill was read the
second time by title.
Reps. Lippman and Mackey offered an amendment striking everything
after the enacting clause and inserting the text of CS/HBs 85-C, 99-C, 15-C,
13-C & 23-C.
On motion by Rep. Wallace, the Clerk was directed to withhold printing
of the amendment in the Journal.
On motion by Rep. Lippman, the rules were waived by the required two-
thirds vote and SB 12-C, as amended, was read the third time by title. On
passage, the vote was:
Yeas-113

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine

Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Goode
Gordon
Greene
Hafner
Harris
Hawkins

Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Miller

Minton
Mishkin
Mitchell
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts
Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon

Sindler
Smith
Stabins
Stafford
Starks
Nays-3
Hanson

Sublette
Tedder
Thomas
Tobin
Trammell

Merchant

Upchurch
Valdes
Villalobos
Wallace
Warner

Thrasher

Webster
Wise

Votes after roll call:
Yeas-Graber
So the bill passed, as amended, and was immediately certified to the
Senate.
Rep. Lippman moved that the Senate be requested to concur in the
House amendment to SB 12-C or, failing to concur, to appoint a conference
committee to meet with a like committee from the House to resolve
differences between the houses on this measure.
Thereupon, in anticipation of the Senate action, the Speaker appointed
the following Members as managers on the part of the House: Rep.
Lippman (Chair), Reps. Mackey, Boyd, Burke, Hawkes and King, with
Reps. Wallace, Graber and Warner, alternates.

Recessed
On motion by Rep. Wallace, the House stood in recess at 4:54 p.m., to
reconvene at 6:00 p.m. today or upon the call of the Speaker.

Reconvened
The House was called to order by the Speaker at 7:05 p.m. A quorum was
present.

Unfinished Business

CS/CS/HB 91-C-A bill to be entitled An act relating to weapons and
firearms; amending s. 790.17, F.S.; prohibiting certain transfer to a minor
of a weapon, or electric weapon or device; prohibiting sale or transfer to a
minor of a firearm and providing that a violation constitutes a third-degree
felony; amending s. 790.175, F.S.; redefining the term "minor"; requiring
that the purchaser of a firearm or dangerous weapon be informed that it
is unlawful to store or leave a firearm or dangerous weapon within access
of a minor or to knowingly sell or transfer a firearm or other dangerous
weapon to a minor or a person of unsound mind; amending s. 790.18, F.S.;
prohibiting an arms dealer from selling or transferring a firearm or certain
other weapons to a minor; increasing the penalty for a violation from a
misdemeanor to a felony; amending s. 790.22, F.S.; requiring parental
consent for minors to use certain guns or electric weapons or devices;
increasing penalties for a violation by an adult; providing penalties for a
violation by a minor; prohibiting a minor from possessing a firearm;
providing certain exceptions; prohibiting adults responsible for a minor
from knowingly permitting the minor to unlawfully possess a firearm;
providing penalties for a violation by an adult; providing penalties for a
violation by a minor; providing for the seizure and disposal of a firearm or
certain guns or electric weapons or devices that are used or possessed
unlawfully by a minor; providing that such provisions are supplemental to
certain other criminal sanctions; providing for the secure detention of a
minor charged with a violation of certain provisions of ch. 790, F.S.,
pending a court hearing; amending s. 790.23, F.S.; prohibiting felons, and
juveniles found to have committed a delinquent act that would be a felony
if committed by an adult, from using or possessing a weapon or firearm
under certain conditions; providing exceptions; providing penalties;
amending s. 790.25, F.S.; limiting authorization for possession in private
conveyance to persons over 18; providing appropriations; providing an
effective date.
-was taken up, having been read the second time and amended on
November 2; now pending on motion by Rep. Hanson to adopt Amendment
5 (shown in the Journal on pages 34-35).
Subsequently, Amendment 5 was withdrawn.
The question recurred on the adoption of Amendment 1, now pending
on point of order by Rep. Geller. Subsequently, the point of order was
withdrawn.

November 3, 1993

49

50 JOURNAL OF THE HOUSE

Representatives Couch, Crist, Valdes, Martinez, Hanson, Sembler,
Ritchie, Arnall, Manrique, Logan, Long, Mortham, Mackenzie, King,
De Grandy, Thomas and Stafford offered the following substitute
amendment:
Substitute Amendment 1-Strike everything after the enacting
clause and insert:
Section 1. Section 790.17, Florida Statutes, is amended to read:
790.17 Furnishing weapons to minors under 18 years of age or persons
of unsound mind and furnishing firearms to minors under 18 years of age
prohibited,-ete.-
(1) A person who Wheever sells, hires, barters, lends, transfers, or gives
any minor under 18 years of age any pisto, dirk, electric weapon or device,
or other arm-er weapon, other than an ordinary pocketknife, without
permission of the minor's parent or guardian of ouch minor, or tho pron
having charge of o.uch minor, or sells, hires, barters, lends, transfers, or
gives to any person of unsound mind an electric weapon or device or any
dangerous weapon, other than an ordinary pocketknife, commits is-guilty
of a misdemeanor of the first degree, punishable as provided in s. 775.082
or s. 775.083.
(2) A person may not knowingly sell or transfer a firearm to a minor
under 18 years of age except that a person may transfer ownership of a
firearm to a minor with permission of the parent or guardian. However,
the parent or guardian must maintain possession of the firearm except
pursuant to s. 790.22. A person who violates this subsection commits a
felony of the third degree, punishable as provided in s. 775.082, s. 775.083,
or s. 775.084.
Section 2. Section 790.175, Florida Statutes, is amended to read:
790.175 Transfer or sale of firearms; required warnings; penalties.-
(1) Upon the retail commercial sale or retail transfer of any firearm, the
seller or transferor shall deliver a written warning to the purchaser or
transferee, which warning states, in block letters not less than 1/4 inch in
height:
"IT IS UNLAWFUL, AND PUNISHABLE BY IMPRISONMENT
AND FINE, FOR ANY ADULT TO STORE OR LEAVE A
FIREARM IN ANY PLACE WITHIN THE REACH OR EASY
ACCESS OF A MINOR UNDER 18 YEARS OF AGE OR TO
KNOWINGLY SELL OR OTHERWISE TRANSFER OWNERSHIP
OR POSSESSION OF A FIREARM TO A MINOR OR A PERSON
OF UNSOUND MIND."
(2) Any retail or wholesale store, shop, or sales outlet which sells
firearms must conspicuously post at each purchase counter the following
warning in block letters not less than 1 inch in height:
"IT IS UNLAWFUL TO STORE OR LEAVE A FIREARM IN ANY
PLACE WITHIN THE REACH OR EASY ACCESS OF A MINOR
UNDER 18 YEARS OF AGE OR TO KNOWINGLY SELL OR
OTHERWISE TRANSFER OWNERSHIP OR POSSESSION OF A
FIREARM TO A MINOR OR A PERSON OF UNSOUND MIND."
(3) Any person or business knowingly violating a requirement to
provide warning under this section commits a misdemeanor of the second
degree, punishable as provided in s. 775.082 or s. 775.083.

)Ao uooa in thio act, the term "minor" mean any person undcr tho
age of 16
Section 3. Section 790.18, Florida Statutes, is amended to read:
790.18 Sale or transfer of Selling arms to minors by dealers.-It is
unlawful for any dealer in arms to sell or transfer to a minor minorf any
firearm, pistol, Springfield rifle or other repeating rifle, bowie knife or dirk
knife, brass knuckles, slungshot, or electric weapon or device. A,-and-every
person who violates violating this section commits shall bo guilty of a
felony misdemeanor of the second first degree, punishable as provided in
s. 775.082, oe s. 775.083, or 775.084.
Section 4. Section 790.22, Florida Statutes, is amended to read:
790.22 Use of BB guns, air or gas-operated guns, or electric weapons or
devices, or firearms by minor ehild under 16; limitation; possession of
firearms by minor under 18 prohibited; penalties.-

;1

_ ___ __ ___ __ __

(4) (a) Any parent or guardian of a minor, or other adult responsible
for the welfare of a minor, who knowingly permits the minor to possess
a firearm in violation of subsection (3) commits a felony of the third
degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
(b) Any natural parent or adoptive parent, whether custodial or
noncustodial, or any legal guardian or legal custodian of a minor, if that
minor possesses a firearm in violation of subsection (3) may, if the court
finds it appropriate, be required to render community service hours
together with the child in accordance with paragraph (5)(a) or, for a
second or subsequent offense, paragraph (5)(b).
(c) At any time after this act becomes law, but no later than July 1,
1994, the Department of Health and Rehabilitative Services shall
establish appropriate community service programs to be available to
circuit courts in implementing this subsection. The department shall
propose the implementation of a community service program in each
circuit, and may submit a circuit plan, to be implemented upon approval
of the court, at any time after this act becomes law.
(5) (a) A minor who violates subsection (3) commits a misdemeanor of
the first degree, and may, in addition to any other penalty provided by
law be required to perform up to 100 hours of community service, and:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 1 year.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period of up to 1 year.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 1 year after the date on which the
minor would otherwise have become eligible.
(b) For a second or subsequent offense, the minor may be required to
perform up to 250 hours of community service, and:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 2 years.

I A 't

I

E OF REPRESENTATIVES November 3, 1993

(1) The use for any purpose whatsoever of BB guns, air or gas-operated
guns, or electric weapons or devices, or firearms ao defined in s. 790.001 by
any minor ehild under the age of 16 years is prohibited unless such use is
under the supervision and in the presence of an adult who is acting with
the consent of the minor's parent.
(2) Any adult responsible for the welfare of any child under the age of
16 years who knowingly permits such child to use or have in his possession
any BB gun, air or gas-operated gun, electric weapon or device, or firearm
in violation of the provisions of subsection (1) of this section commits is
guilty. 4 a misdemeanor of the first seeend degree, punishable as provided
in s. 775.082 or s. 775.083.
(3) A minor under 18 years of age may not possess a firearm unless:
(a) The minor is engaged in a lawful hunting activity and is:
1. At least 16 years of age; or
2. Under 16 years of age and supervised by an adult.
(b) The minor is engaged in a lawful marksmanship competition or
practice and is:
1. At least 16 years of age; or
2. Under 16 years of age and supervised by adult who is acting with
the consent of the minor's parent or guardian.
(c) The firearm is unloaded and is being transported by the minor
directly to or from an event authorized in paragraph (a) or paragraph (b),
and with the consent of the minor's parent or guardian for a purpose
authorized in this subsection.

JOURNAL OF THE HOUSI

2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period of up to 2 years.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 2 years after the date on which the
minor would otherwise have become eligible.
(6) Any firearm that is possessed or used by a minor in violation of
this section shall be promptly seized by a law enforcement officer and
disposed of in accordance with s. 790.08(1)-(6).
(8) A minor who is taken into custody for an offense involving the use
or possession of a firearm except a violation of s. 790.22 or is charged for
any offense during the commission of which the minor possessed a firearm
may be securely detained in a juvenile detention facility pending a
detention hearing held in accordance with the provisions of chapter 39,
notwithstanding any provision of chapter 39 to the contrary.

November 3, 1993

(9) The provisions of this section are supplemental to all other
provisions of law relating to the possession, use, or exhibition of a firearm. 790.23 Felons and delinquents; possession of firearms or electric
weapons or devices unlawful.-

(10) Notwithstanding s. 39.042 or s. 39.044(1), if a minor under 18
years of age is charged with an offense that involves the use or possession
of a firearm, as defined in s. 790.001, other than a violation of subsection
(3), or is charged for any offense during the commission of which the
minor possessed a firearm, the minor shall be detained in secure
detention, unless the state attorney authorizes the release of the minor,
and shall be given a hearing within 24 hours after being taken into
custody. At the hearing, the court may order that the minor continue to
be held in secure detention in accordance with the applicable time
periods specified in s. 39.044(5), if the court finds that the minor meets
the criteria specified in s. 39.044(2).
(11) Notwithstanding s. 39.043, if the minor is found to have
committed an offense that involves the use or possession of a firearm, as
defined in s. 790.001, other than a violation of subsection (3), or an offense
during the commission of which the minor possessed a firearm, and is not
committed to a residential commitment program of the Department of
Health and Rehabilitative Services, in addition to any other punishment
provided by law, the court shall order:
(a) For a first offense, that the minor serve a mandatory period of
detention of 5 days in a secure detention facility and perform up to 100
hours of community service.
(b) For a second or subsequent offense, that the minor serve a
mandatory period of detention of 10 days in a secure detention facility
and perform up to 250 hours of community service.
The minor shall receive credit for time served before adjudication.
(12) If a minor is found to have committed an offense under
subsection (11), the court shall impose the following penalties in addition
to any penalty imposed under paragraph (11) (a) or paragraph (11) (b):
(a) For a first offense:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 1 year.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period for up to 1 year.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 1 year after the date on which he
would otherwise have become eligible.
(b) For a second or subsequent offense:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and

(1) It is unlawful for any person to own or to have in his or her care,
custody, possession, or control any firearm or electric weapon or device,
or to carry a concealed weapon, including a tear gas gun or chemical
weapon or device, if that person has been:
(a) Convicted of a felony or found to have committed a delinquent act
that would be a felony if committed by an adult in the courts of this state;
(b) Convicted of or found to have committed a crime against the
United States which is designated as a felony;
(c) Found to have committed a delinquent act in another state,
territory, or country that would be a felony if committed by an adult and
which was punishable by imprisonment for a term exceeding 1 year; or
(d) Found guilty of an offense that is a felony in another state,
territory, or country and which was punishable by imprisonment for a
term exceeding 1 year.
(2) This section shall not apply to a person convicted of a felony
whose civil rights have been restored, or to a person found to have
committed a delinquent act that would be a felony if committed by an
adult with respect to which the jurisdiction of the court pursuant to
chapter 39 has expired.
(3) Any person who violates this section commits a felony of the
second degree, punishable as provided in s. 775.082, s. 775.083, or s.
775.084.
Section 6. Subsection (5) of section 790.25, Florida Statutes, is
amended to read:
790.25 Lawful ownership, possession, and use of firearms and other
weapons.-
(5) POSSESSION IN PRIVATE CONVEYANCE.-Notwithstanding
subsection (2), it is lawful and is not a violation of s. 790.01 for a person
18 years of age or older to possess a concealed firearm or other weapon for
self-defense or other lawful purpose within the interior of a private
conveyance, without a license, if the firearm or other weapon is securely
encased or is otherwise not readily accessible for immediate use. Nothing
herein contained prohibits the carrying of a legal firearm other than a
handgun anywhere in a private conveyance when such firearm is being
carried for a lawful use. Nothing herein contained shall be construed to
authorize the carrying of a concealed firearm or other weapon on the
person. This subsection shall be liberally construed in favor of the lawful
use, ownership, and possession of firearms and other weapons, including
lawful self-defense as provided in s. 776.012.
Section 7. (1) There is hereby appropriated a lump sum of $727,682
from the General Revenue Fund for the Juvenile Justice Program in the
Department of Health and Rehabilitative Services. This shall be used for
additional staffing for secure detention and case management for
community service for delinquent youth.

E OF REPRESENTATIVES 51

Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 2 years.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period for up to 2 years.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 2 years after the date on which he
would otherwise have become eligible.
(13) Effective January 1, 1994, for a third or subsequent violation of
this section, or for any commission of a felony offense during which the
minor used a firearm, the minor shall be prosecuted as an adult.
Section 5. Section 790.23, Florida Statutes, is amended to read:
(Substantial rewording of section. See
s. 790.23, F.S., for present text.)

JOURNAL OF THE HOUSE OF REPRESENTATIVES

"(2) There is hereby appropriated $109,500 from the General Revenue Amendment 3 (shown in the Journal on page 34, November 2) was
Fund to the Department of Corrections for the implementation of this act. abandoned.

Section 8. Except as otherwise provided herein, this act shall take
effect January 1, 1994.
and the title is amended as follows:
Strike the entire title and insert: A bill to be entitled An act relating to
weapons and firearms; amending s. 790.17, F.S.; prohibiting certain
transfer to a minor of a weapon, or electric weapon or device; prohibiting
sale or transfer to a minor of a firearm and providing that a violation
constitutes a third-degree felony; amending s. 790.175, F.S.; redefining the
term "minor"; requiring that the purchaser of a firearm be informed that
it is unlawful to store or leave a firearm within access of a minor or to
knowingly sell or transfer a firearm to a minor or a person of unsound mind;
amending s. 790.18, F.S.; prohibiting an arms dealer from selling or
transferring a firearm or certain other weapons to a minor; increasing the
penalty for a violation from a misdemeanor to a felony; amending s. 790.22,
F.S.; prohibiting a minor from possessing a firearm; providing certain
exceptions; prohibiting adults responsible for a minor from knowingly
permitting the minor to unlawfully possess a firearm; providing penalties
for a violation by an adult, including community service in certain
circumstances, and requiring the Department of Health and Rehabilitative
Services to provide a community service plan; providing penalties for a
violation by a minor; requiring that a minor charged with certain offenses
involving the use or possession of a firearm be detained in secure detention
unless the state attorney authorizes the minor's release; providing for a
hearing within a specified period; requiring the court to order a minimum
mandatory period of secure detention in addition to other punishments
provided by law if the minor is found to have committed certain offenses
involving the use or possession of a firearm and is not committed to a
residential commitment program of the Department of Health and
Rehabilitative Services; providing for mandatory revocation or suspension
of the driving privilege if a minor is found to have committed certain
offenses involving the use or possession of a firearm; providing for
enhanced penalties; providing for the seizure and disposal of a firearm used
or possessed unlawfully by a minor; providing that such provisions are
supplemental to certain other criminal sanctions; providing for the secure
detention of a minor charged with a violation of certain provisions of ch.
790, F.S., pending a court hearing; amending s. 790.23, F.S.; prohibiting
felons, and juveniles found to have committed a delinquent act that would
be a felony if committed by an adult, from using or possessing a firearm
under certain conditions; providing exceptions; providing penalties;
amending s. 790.25, F.S.; limiting authorization for possession in private
conveyance to persons over 18; providing appropriations; providing
effective dates.

On motion by Rep. Logan, the rules were waived by the required two-
thirds vote and CS/CS/HB 91-C, as amended, was read the third time by
title. On passage, the vote was:
Yeas-119

The Chair
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
De Grandy

Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Goode
Gordon
Graber
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King

Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts

Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Nays-None
Votes after roll call:
Yeas-Abrams
So the bill passed, as amended, and was immediately certified to the
Senate after engrossment.

Messages from the Senate

WHEREAS, the love affair between juveniles and firearms has reached T H ra B L r
an all time-high here in Florida, and The Honorable Bo L Johnson Seaker
WHEREAS, the courts, the Legislature, and law enforcement cannot be am directed to inform the House of Representativesthat the Senate has
passed CS/HBs 33-C & 43-C, with amendment, and requests the
the sole solution to stem our rising juvenile crime statistics, and passed CS/HBs 33-C & 43-C, with amendment, and requests t
concurrence of the House.

WHEREAS, it is the will of the Legislature and all Floridians that
parental involvement, accountability, and responsibility become the key to
solving our existing broken juvenile criminal justice system, and
WHEREAS, it is the will of Floridians all across this great state of ours
that juveniles who violate laws pertaining to the illegal use of firearms be
dealt with in a swift and certain and severe manner, and
WHEREAS, it is time for the Governor, the President of the Senate, and
the Speaker of the House of Representatives, along with the Republican
leaders of the Senate and House of Representatives, to seek relief from our
counterparts in the United States Congress by cutting the federally
mandated ties that bind us from curing our juvenile crime problems here
at home, as said laws prevent us from using stricter, harsher, and more
certain penalties in detaining Florida's juveniles, NOW, THEREFORE,
Rep. Couch moved the adoption of the substitute amendment.
Rep. Logan moved the previous question on the substitute amendment,
the amendment and the bill, which was agreed to.
The question recurred on the adoption of Substitute Amendment 1,
which was adopted.

Joe Brown, Secretary

CS/HBs 33-C & 43-C-A bill to be entitled An act relating to
insurance; amending s. 624.307, F.S.; requiring the Department of
Insurance to implement a program to encourage the entry of additional
insurers into the Florida market; creating s. 624.3101, F.S.; prohibiting
false or misleading financial statements; providing penalties; creating s.
624.3102, F.S.; providing immunity from civil liability for persons who
provide the department with certain information about insurers; amending
s. 624.316, F.S.; removing limitation of examination authority to domestic
insurers; limiting acceptability of examination reports of foreign insurers;
providing for conduct of examinations by independent examiners;
specifying frequency of examinations of insurers; providing for adoption of
rules; amending s. 624.407, F.S.; increasing the minimum surplus as to
policyholders required for issuance of a certificate of authority as a
property and casualty insurer; amending s. 624.408, F.S.; increasing the
minimum surplus as to policyholders required for maintenance of a
certificate of authority as a property and casualty insurer; amending s.
624.424, F.S.; requiring an insurer's annual statement to include a
statement of opinion on reserves; limiting waivers of accounting

52

November 3, 1993

JOURNAL OF THE HOUSE]

requirements; creating s. 624.4243, F.S.; providing for computation and
reporting of premium growth; specifying powers of the department;
amending s. 624.610, F.S.; providing criteria for classification as an
approved reinsurer; requiring a ceding insurer to conduct a due diligence
inquiry with respect to an assuming reinsurer; revising criteria for a letter
of credit used with respect to credit on financial statements for certain
reinsurance; authorizing rules with respect to the letter of credit;
authorizing use by the Department of Insurance of reinsurance consultants
under certain conditions; providing procedures and requirements with
respect thereto and regarding the reinsurance evaluation; providing for
payment for evaluation costs; amending s. 625.305, F.S.; removing
authority of the department to waive certain investment restrictions;
amending s. 626.7491, F.S.; specifying when an insurer is presumed to be
producer-controlled; specifying application of certain provisions; providing
exceptions; specifying producers from which insurers may accept business;
amending s. 626.918, F.S.; increasing minimum surplus requirements for
surplus lines insurers; creating s. 627.0629, F.S.; requiring residential
property insurance rate filings to include rate differentials for properties
on which certain fixtures have been installed; authorizing such rate filings
to include factors reflecting the quality of particular building codes and
enforcement thereof; providing for adoption and use of a standard
hurricane loss exposure model; providing criteria for territories used in
property insurance rate filings; amending s. 627.351, F.S.; revising
provisions with respect to deficit assessments in the windstorm insurance
risk apportionment plan; authorizing issuance of bonds on behalf of the
plan; requiring insurers to purchase bonds in specified circumstances;
providing circumstances under which a classification is immediately
eligible for coverage in the Florida Property and Casualty Joint
Underwriting Association; providing criteria for rates; activating coverage
with respect to commercial coverages of residences; providing for
legislative review; providing for termination; revising provisions with
respect to deficit assessments; authorizing issuance of bonds on behalf of
the association; requiring insurers to purchase bonds in specified
circumstances; providing legislative intent with respect to the Residential
Property and Casualty Joint Underwriting Association; providing criteria
for rates; requiring rate filings; revising provisions relating to deficit
assessments; authorizing issuance of bonds on behalf of the association;
requiring insurers to purchase bonds in specified circumstances; providing
for dissolution of the association; amending s. 627.4133, F.S.; specifying
period for notice of nonrenewal, renewal premium, and cancellation;
amending s. 627.701, F.S.; specifying powers of the department with
respect to deductible provisions in certain policies; creating s. 627.7011,
F.S.; requiring certain provisions to be offered with respect to homeowner's
policies; providing for rejection or selection of alternative coverages;
requiring notice; creating s. 627.7012, F.S.; authorizing the department to
establish pools of qualified adjusters for use in emergencies; creating s.
627.7013, F.S.; providing findings and purpose; limiting cancellation or
nonrenewal of policies that were subject to the moratorium contained in
ch. 93-401, Laws of Florida; providing for future repeal; requiring insurers
to submit exposure reduction plans to the department for approval;
creating s. 627.7014, F.S.; requiring insurers to implement plans for the
avoidance of certain concentrations of property insurance exposures;
providing for reports; providing circumstances for submission of plans to
the department; providing criteria for approval of order to resubmit;
creating s. 627.7015, F.S.; requiring the department to adopt a mediation
program for first-party claims under personal lines residential policies;
providing purpose and scope; requiring notice; providing for payment of
costs; requiring adoption of rules; providing for treatment as negotiations
in anticipation of litigation; requiring negotiation in good faith; requiring
participants to have the authority to settle; providing immunity for
mediators; specifying effects of mediation; specifying time within which
insured may rescind settlement; authorizing the department to delegate
certain duties; amending s. 628.801, F.S.; specifying content and
applicability of rules relating to insurance holding companies; amending
s. 631.52, F.S.; specifying applicability of the Florida Insurance Guaranty
Association Act; amending s. 631.54, F.S.; including certain surplus lines
insurers as member insurers; amending s. 631.55, F.S.; requiring a separate
account for surplus lines insurers; requiring the Department of Insurance
to conduct a study of the classification of condominium association

coverage; requiring reports; amending ss. 625.330 and 631.011, F.S.;
correcting cross references; providing effective dates.

November 3, 1993

has not had a change in ownership, as provided in s. 624.4245 or s. 628.461,
during the preceding 15 years.
3. The department may not accept an independent certified public
accountant's audit report in lieu of the examination required by this
paragraph.

E OF REPRESENTATIVES 53

Senate Amendment 1 (with Title Amendment)-Strike
everything after the enacting clause and insert:
Section 1. Subsection (7) is added to section 624.307, Florida Statutes,
to read:
624.307 General powers, duties.-
(7) The department shall, within existing resources, develop and
implement an outreach program for the purpose of encouraging
additional insurers to enter the insurance market in this state.
Section 2. Section 624.3215, Florida Statutes, is created to read:
624.3215 Immunity from civil liability for providing information about
financial condition of insurer.-A person who provides to the department
information about the financial condition of an insurer is immune from
civil liability arising out of the provision of that information unless the
person acted with knowledge that the information was false or with
reckless disregard for the truth or falsity of that information.
Section 3. Subsection (2) of section 624.316, Florida Statutes, is
amended to read:
624.316 Examination of insurers.-
(2)(a) The department may examine each insurer as often as may be
warranted for the protection of the policyholders and in the public interestT
and shall, except as provided in paragraph (e), examine each domestic
insurer at least nct lsO frequently than once every 3 years. The
examination shall cover the preceding 3 fiscal years of the insurer and shall
be commenced within 12 months after the end of the most recent fiscal year
being covered by the examination. The examination may cover any period
of the insurer's operations since the last previous examination. The
examination may include examination of events subsequent to the end of
the most recent fiscal year and the events of any prior period that affect
the present financial condition of the insurer. In lieu of making its own
examination, the department may accept an independent certified public
accountant's audit report prepared on that company according to law on
a statutory basis consistent with the Florida Insurance Code on that
pc, ocifi company. The department may not accept the report in lieu of the
requirement imposed by paragraph (1)(b). If When an examination is
conducted by the department for the sole purpose of examining the 3
preceding fiscal years of the insurer within 12 months after the opinion
date of an independent certified public accountant's audit report prepared
on that company on a statutory basis cn that specific empany consistent
with the Florida Insurance Code, the cost of the examination as charged
to the insurer pursuant to s. 624.320 shall be reduced by the cost to the
insurer of the independent certified public accountant's audit reports.
Requests for the reduction in cost of an examination must be submitted
to the department in writing no later than 90 days after the conclusion of
the examination and shall include sufficient documentation to support the
charges incurred for the statutory audit performed by the independent
certified public accountant.
(b) The department shall examine each insurer applying for an initial
certificate of authority to transact insurance in this state before granting
the initial certificate.
(c) In lieu of making its own examination, the department may accept
a full report of the last recent examination of a foreign insurer, certified
to by the insurance supervisory official of another state.
(d) The examination by the department of an alien insurer shall be
limited to the alien insurer's insurance transactions and affairs in the
United States, except as otherwise required by the department.
(e)1. At least once every year, the department shall examine each
domestic insurer that has held a certificate of authority for less than 3
years. The examination must cover the preceding fiscal year or the period
since the last examination of the insurer.
2. At least once every 5 years, the department shall examine each
domestic insurer that has continuously held a certificate of authority and

54 JOURNAL OF THE HOUSE

4. An insurer may not be required to pay more than $25,000 to cover
the costs of an examination under this paragraph.
Section 4. Section 624.407, Florida Statutes, is amended to read:
624.407 Capital funds required; prospective new insurers.-
(1) To receive authority to transact any one kind or combinations of
kinds of insurance, as defined in part V of this chapter, an insurer hereafter
applying for its original certificate of authority in this state must shall
possess a surplus as to policyholders in an amount that is not less than the
greater of $5,000,000 or:

(a)f* For life insurers, 4 percent of the insurer's total liabilities.-
(b){e For life and health insurers, 4 percent of the insurer's total
liabilities, plus 6 percent of the insurer's liabilities relative to health
insurance.i-es
(c){4 For all insurers other than life insurers and life and health
insurers, 10 percent of the insurer's total liabilities;
however, no insurer shall be required under this subsection to have surplus
as to policyholders in an amount greater than $100 million.
(2) The requirements of this section shall be based upon all the kinds
of insurance actually transacted or to be transacted by the insurer in any
and all areas in which it operates, whether or not only a portion of such
kinds are to be transacted in this state.
(3) As to surplus as to policyholders required for qualification to
transact one or more kinds of insurance, domestic mutual insurers are
governed by chapter 628, and domestic reciprocal insurers are governed by
chapter 629.
(4) For the purposes of this section, liabilities shall not include
liabilities required under s. 625.041(4). For purposes of computing
minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities
shall include liabilities required under s. 625.041(4).
(5) The provisions of this section, as amended by this act, shall apply
only to insurers applying for a certificate of authority on or after the
effective datc of this act.
Section 5. Section 624.408, Florida Statutes, is amended to read:
624.408 Surplus as to policyholders required; new and exiting

(1) To maintain a certificate of authority to transact any one kind or
combinations of kinds of insurance, as defined in part V of this chapter,
an insurer in this state that has a applied-feorit certificate of authority
must on or after the effective date of this act shall at all times maintain
a surplus as to policyholders in an amount that is not less than the greater
of $4,000,000 or:

(a)W-b For life insurers, 4 percent of the insurer's total liabilities..
(b)e For life and health insurers, 4 percent of the insurer's total
liabilities plus 6 percent of the insurer's liabilities relative to health
insurance.-we
(c) For title insurers, $1,500,000.
(d) For all insurers other than life insurers, and life and health insurers,
and title insurers, 10 percent of the insurer's total liabilities.
For any insurer holding a certificate of authority on December 31, 1993,
the following amount replaces the $4,000,000 requirement during each
period specified:
1. On December 31, 1994, and until December 30, 1995, $1,650,000.
2. On December 31, 1995, and until December 30, 1996, $1,800,000.

3. On December 31, 1996, and until December 30, 1997, $1,950,000.
4. On December 31, 1997, and until December 30, 1998, $2,100,000.
5. On December 31, 1998, and until December 30, 1999, $2,250,000.
6. On December 31, 1999, and until December 30, 2000, $2,500,000.

E

OF REPRESENTATIVES November 3, 1993

7. On December 31, 2000, and until December 30, 2001, $2,750.000.
8. On December 31, 2001, and until December 30, 2002, $3,000,000.
9. On December 31, 2002, and until December 30, 2003, $3,250,000.
10. On December 31, 2003, and until December 30, 2004, $3,600,000.
JQ1o\ ra =nn = a^.s^^^i^ eve ^^4-if;^^4-^ ^ C,,+i,^;4-, 4-^ --r, I-;^-a /+"-

combinations of kinds of insurance, as defined in part V of this chapter,
an insurer in thio stato that applied for itso ertifieatc of authority prior to
the cffcctive date of this act shall maintain on December 31,1989, and until
DeLembor 31, 1990, surplus a to poliyholdr not lss than the gfrater of:
(a) $1,000,000;
(b)-For life inouroro, 3 percent of the insurer's total liabilities;
(e)-For life and health inourcro, 3 porcont of the insurer's total
liabilities plus 2 percent of the insurer's liabilities relative to health
insuraneee ; of
()Fora all insurcrso other than life insurers and lifeo and health inouror,
10 percent of the insurer's total liabilitieo.
(3) To maintain a certificate of authority to transaot any one kind or
combinations of kinds of insurance, as defined in part V of this chapter,
an insuror in thio otato that applied for its certificate of authority prior to
the effective date of this act shall maintain on December 31, 1990, and until
December 31, 1991, surplus as to policyholders not less than the greater of:
(a) $1,150,000;
(b) For life insurers, 3.3 percent of the insurr's total liabilities;
(e)-For life and health insurers, 3.3 pcrcont of the insurer's total
liabilities plus 4 percent of tho insurer's liabilities rolativo to health
nu eac; oee
(d)-For all insurers other than life insurers and lifo and health insurors,
10 percent of the insurer's total liabilities.
(4) To maintain a certifiicate of authority to transact any one kind or
combinations of kinds of insurance, as defined in part V of this chapter,
an insurer in this state that applied for its certificate of authority prior to
the offeetive date of this act, Shall maintain on Deember 31, 1991, and
until Deo.mber 31, 1992, surplus as to policyholders not less than th
great o-f:.
(a)$
(b) For life inurr, 3.6 percent of the insurer's total liabilities;
(e)-For life and health insurers, 3.6 percent of tho insurer's total
liabilities plus 5 perc nt of tho inosuror-'s liabilities relative to health
sianeeo; o
(d) For all insureors other than life insurers and life and health insourers,
10 percent of the insureor'so total liabilities.
(6) To maintain a certificate of authority to tranosat any one kind or
combimations of kinds of insurance, as defined in part V of this chapter,
an inureo in this state that applied for its certificate of authority prior to
the effective date of this act, shall maintain on Decembe r 31, 1992, and
thereafter, sourpluso as to policyholders not less than the greater of:

(b)-For life insurers, 4 percent of the insurer's total liabilities;
(e)-For life and health insurers, 4 percent of the insurer's total
liabilities plus 6 percent of the insurer's liabilities relative to health

(d) For all insurros other than life insurers and life and health insurers,
10 percent of the insurer's total liabilities.
(2)-6-} For purposes of this section, liabilities shall not include
liabilities required under s. 625.041(4). For purposes of computing
minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities
shall include liabilities required under s. 625.041(4).
(3)-7-- No insurer shall be required under this section to have a surplus
as to policyholders in an amount greater than $100 million.
Section 6. Section 624.4243, Florida Statutes, is created to read:
624.4243 Reporting of premium growth.-

JOURNAL OF THE HOUf

(1) Each insurer that has been authorized to transact property and
casualty insurance in this state for a continuous period of less than 3 years
shall monthly calculate its premium growth as follows:
(a) For the 12-month period ending on the last day of the previous
month, obtain the amount of the insurer's direct and assumed written
premiums for the United States and its territories.
(b) For the 12-month period immediately preceding the 12-month
period specified in paragraph (a), obtain the amount of the insurer's direct
and assumed written premiums for the United States and its territories.
(c) Subtract the amount of premiums calculated under paragraph (b)
from the amount of premiums calculated under paragraph (a).
(d) Divide the amount of premiums determined under paragraph (c)
by the amount of premiums determined under paragraph (b).
(2) If the amount of the premium growth calculated by an insurer
under this section exceeds 0.33 percent, the insurer shall, within 30 days
after the end of the 12-month period ending on the last day of the previous
month, file with the department a statement of the premium growth
calculations under this section. The department shall adopt rules
specifying the form for the report. In response to a report under this
section, the department may require the insurer to submit an explanation
of the insurer's pattern of premium growth.
(3) For the purposes of this section, direct and assumed written
premiums shall be calculated in the same manner as for the preparation
of the insurer's annual statement under s. 624.424.
Section 7. Subsections (4), (7), and (8) of section 625.305, Florida
Statutes, are amended to read:
625.305 Diversification.-
(4) Without the prior wr;itte approval of the department, The cost of
investments in bonds, debentures, notes, commercial paper, or other debt
obligations issued, assumed, or guaranteed by any solvent institution, and
which investments are classified as medium to lower quality obligations,
other than obligations of subsidiaries or related corporations as that term
is defined in s. 625.325, shall be limited to:
(a) No more than 13 percent of an insurer's admitted assets.
(b) No more than 5 percent of an insurer's admitted assets in
obligations that have been given a rating of 4, 5, or 6 by the Securities
Valuation Office of the National Association of Insurance Commissioners.
(c) No more than 1.5 percent of an insurer's admitted assets in
obligations that have been given a rating of 5 or 6 by the Securities
Valuation Office of the National Association of Insurance Commissioners.
(d) No more than 0.5 .- percent of an insurer's admitted assets in
obligations that have been given a rating of 6 by the Securities Valuation
Office of the National Association of Insurance Commissioners.
(e) No more than 10 percent of an insurer's admitted assets, if the
investments are in issuers from any one industry.
(f) No more than 2 percent of an insurer's admitted assets if the
investment is in any one issuer.
(7) The prevision-s of Subsections (4), (5), and (6) apply to any
investment made after September 30, 1991. If an insurer's investments in
medium to lower quality obligations equal or exceed the maximum
amounts permitted by subsection (4) as of October 1, 1991, the insurer may
shall not acquire any additional medium to lower quality obligations
without tho prir writtenn approval of the department. An insurer that was
is not in compliance with subsection (4) as of October 1, 1991, may hold
until maturity or until January 1, 1996, whichever is sooner, only those
medium to lower quality obligations it owned eows on that date if such
obligations were obtained in compliance with the law in effect at the time
the investments were made. If the insurer sells, transfers, or otherwise
disposes of such securities prior to maturity, the insurer may not acquire
any medium to lower quality obligations as substitutions or replacements,
except replacement investments without the prier approval of the
department.. However, the consent of thr department haull not o required
if ;uch replaceeo.nt inve;. tment ic acquired for the purpose of supporting

November 3, 1993

member of the board of directors be elected by the domestic companies of
this state on the basis of cumulative weighted voting based on the net
written premiums of domestic companies in this state. Any such plan shall
provide a formula whereby a company voluntarily providing windstorm
coverage in affected areas will be relieved wholly or partially from

SE OF REPRESENTATIVES 55

liabilities supported by the medium to lower quality investments. An
insurer that was is not in compliance with subsection (4) on December 31,
1991, shall file with its annual statement a separate schedule of the medium
to lower quality obligations it owned owns on December 31, 1991. Until it
is in compliance with subsection (4), the insurer shall file with each
succeeding annual and quarterly statement a separate schedule of the
medium to lower quality obligations it owns as of the reporting date of the
filed statement.
(8) Failure to obtain the prior written approval of the department ohall
result-i n Any investments in excess of those permitted by subsection (4)
are not being allowed as an asset of the insurer.
Section 8. Subsection (1) of section 625.330, Florida Statutes, is
amended to read:
625.330 Special investments by title insurer.-
(1) In addition to other investments eligible under this part, a title
insurer may invest and have invested an amount not exceeding the greater
of $300,000 or 50 percent of that part of its surplus as to policyholders
which exceeds the minimum surplus required of title insurers under s.
624.408 by o. 624.408( ) and (4) in its abstract plant and equipment, in
loans secured by mortgages on abstract plants and equipment, and, with
the consent of the department, in stocks of abstract companies. If the
insurer transacts kinds of insurance in addition to title insurance, for the
purposes of this section its paid-in capital stock shall be prorated between
title insurance and such other insurances upon the basis of the reserves
maintained by the insurer for the various kinds of insurance; but the
capital so assigned to title insurance shall in no event be less than $100,000.
Section 9. Subsections (2), (5), and (6) of section 627.351, Florida
Statutes, are amended to read:
627.351 Insurance risk apportionment plans.-
(2) WINDSTORM INSURANCE RISK APPORTIONMENT.-
(a) Agreements may be made among property insurers with respect to
the equitable apportionment among them of insurance which may be
afforded applicants who are in good faith entitled to, but are unable to
procure, such insurance through ordinary methods; and such insurers may
agree among themselves on the use of reasonable rate modifications for
such insurance. Such agreements and rate modifications shall be subject
to the applicable provisions of this chapter.
(b) The department shall require all insurers licensed to transact
property insurance on a direct basis in this state to provide windstorm
coverage to applicants from areas determined to be eligible pursuant to
paragraph (c) who in good faith are entitled to, but are unable to procure,
such coverage through ordinary means; or it shall adopt a reasonable plan
or plans for the equitable apportionment or sharing among such insurers
of windstorm coverage. The commissioner shall promulgate rules which
provide a formula for the recovery and repayment of any deferred
assessments.
1. For the purpose of this section, properties eligible for such
windstorm coverage are defined as dwellings, buildings, and other
structures, including mobile homes which are used as dwellings and which
are tied down in compliance with mobile home tie-down requirements
prescribed by the Department of Highway Safety and Motor Vehicles
pursuant to s. 320.8325, and the contents of all such properties.
2.a. All insurers required to be members of such plan shall participate
in its writings, expenses, profits, and losses. Such gross participation shall
be in the proportion that the net direct premiums of each member written
on property in this state during the preceding calendar year bear to the
aggregate net direct premiums of all members of the plan written on
property in this state during the preceding calendar year. The
commissioner, after review of annual statements, other reports, and any
other statistics which he deems necessary, shall certify to the plan the
aggregate net direct premiums written on property in this state by all
members. The plan of operation shall provide that one additional domestic

an unexpired life insurance or annuity product liability on the condition
that af* the insurer has filed with the department a schedule of such

56 JOURNAL OF THE HOUSE

apportionment. A company which is a member of a group of companies
under common management may elect to have its credits applied on a
group basis, and any company or group may elect to have its credits applied
to any other company or group.
b. Assessments to pay deficits in the plan under this subparagraph
shall be included as an appropriate factor in the making of rates.
c. The Legislature finds that the potential for unlimited deficit
assessments under this subparagraph may induce insurers to attempt to
reduce their writings in the voluntary market, and that such actions
would worsen the availability problems that the plan was created to
remedy. It is the intent of the Legislature that insurers remain fully
responsible for covering any deficits of the plan; however, it is also the
intent of the Legislature to provide a means by which assessment
liabilities may be amortized over a period of years.
d. The total amount of deficit assessments under this subparagraph
with respect to any year may not exceed 10 percent of the statewide total
gross written premium for all insurers for the coverages referred to in
paragraph (b) for the prior year, except that if the deficit with respect to
any plan year exceeds such amount and bonds are issued under sub-
subparagraph e. to defray the deficit, the total amount of assessments
with respect to such deficit may not in any year exceed 10 percent of the
deficit, or such lesser percentage as is sufficient to retire the bonds as
determined by the board, and shall continue annually until the bonds are
retired.
e. The governing body of any unit of local government, any residents
of which are insured under the plan, may issue bonds as defined in s.
125.013 or s. 166.101 from time to time to fund an assistance program, in
conjunction with the plan, for the purpose of defraying deficits of the
plan. The unit of local government shall enter into such contracts with
the plan as are necessary to carry out this paragraph. Any bonds issued
under this sub-subparagraph shall be payable from and secured by
moneys received by the plan from assessments under this subparagraph,
and assigned and pledged to or on behalf of the unit of local government
for the benefit of the holders of such bonds. The funds, credit, property,
and taxing power of the state or of the unit of local government shall not
be pledged for the payment of such bonds.
3. The plan shall also provide that any member with a surplus as to
policyholders of $20,000,000 or less writing 25 percent of its total
countrywide property insurance premiums in this state may petition the
department, within 90 days of the effective date of chapter 76-96, Laws of
Florida, and thereafter within the first 90 days of each calendar year, to
qualify as a limited apportionment company. The apportionment of such
a company in any calendar year for which it is qualified shall not exceed
its gross participation, which shall not be affected by the formula for
voluntary writings. In no event shall a limited apportionment company be
required to participate in any apportionment of losses in the aggregate
which exceeds $50,000,000 after payment of available plan funds in any
calendar year. The plan shall provide that, if the department determines
that any assessment will result in an impairment of the surplus of a limited
apportionment company, the department may direct that all or part of
such assessment be deferred.
4. The plan shall provide for the deferment, in whole or in part, of the
assessment of a member insurer if, in the opinion of the commissioner,
payment of the assessment would endanger or impair the solvency of the
member insurer. In the event an assessment against a member insurer is
deferred in whole or in part, the amount by which such assessment is
deferred may be assessed against the other member insurers in a manner
consistent with the basis for assessments set forth in subparagraph 2.
5. The plan may include deductibles and rules for classification of risks
and rate modifications consistent with the objective of providing and
maintaining funds sufficient to pay catastrophe losses.
6. The plan may authorize the formation of a private nonprofit
corporation, a private nonprofit unincorporated association, or a nonprofit

mutual company which may be empowered, among other things, to borrow
money and to accumulate reserves or funds to be used for the payment of
insured catastrophe losses. The plan shall incorporate and continue the
plan of operation and articles of agreement in effect on the effective date
of chapter 76-96, Laws of Florida, to the extent that it is not inconsistent

I]

E OF REPRESENTATIVES November 3, 1993

with chapter 76-96, Laws of Florida, and as subsequently modified
consistent with chapter 76-96, Laws of Florida. The board of directors and
officers currently serving shall continue to serve until their successors are
duly qualified as provided under the plan. The assets and obligations of the
plan in effect immediately prior to the effective date of chapter 76-96, Laws
of Florida, shall be construed to be the assets and obligations of the
successor plan created herein.
7. On such coverage, an agent's remuneration shall be that amount of
money payable to him by the terms of his contract with the company with
which the business is placed. However, no commission will be paid on that
portion of the premium which is in excess of the standard premium of that
company.
(c) The provisions of paragraph (b) are applicable only with respect to:
1. Those areas that were eligible for coverage under this subsection on
April 9, 1993; or
2. Any county or area as to which the department, after public hearing,
finds that the following criteria exist:
a. Due to the lack of windstorm insurance coverage in the county or
area so affected, economic growth and development is being deterred or
otherwise stifled in such county or area, mortgages are in default, and
financial institutions are unable to make loans;
b. The county or area so affected has adopted and is enforcing the
structural requirements of the State Minimum Building Codes, as defined
in s. 553.73, for new construction and has included adequate minimum
floor elevation requirements for structures in areas subject to inundation;
and
c. Extending windstorm insurance coverage to such county or area is
consistent with and will implement and further the policies and objectives
set forth in applicable state laws, rules, and regulations governing coastal
management, coastal construction, comprehensive planning, beach and
shore preservation, barrier island preservation, coastal zone protection,
and the Coastal Zone Protection Act of 1985.
Any time after the department has determined that the criteria referred
to in this subparagraph do not exist with respect to any county or area of
the state, it may, after a subsequent public hearing, declare that such
county or area is no longer eligible for windstorm coverage through the
plan.
(5) PROPERTY AND CASUALTY INSURANCE RISK
APPORTIONMENT.-The department shall adopt by rule a joint
underwriting plan to equitably apportion among insurers authorized in this
state to write property insurance as defined in s. 624.604 or casualty
insurance as defined in s. 624.605, the underwriting of one or more classes
of property insurance or casualty insurance, except for the types of
insurance that are included within property insurance or casualty
insurance for which an equitable apportionment plan, assigned risk plan,
or joint underwriting plan is authorized under s. 627.311 or subsection (1),
subsection (2), subsection (3), or subsection (4) of this section and except
for risks eligible for flood insurance written through the federal flood
insurance program to persons with risks eligible under subparagraph (a)1.
and who are in good faith entitled to, but are unable to, obtain such
property or casualty insurance coverage, including excess coverage,
through the voluntary market. For purposes of this subsection, an
adequate level of coverage means that coverage which is required by state
law or by responsible or prudent business practices. The Joint
Underwriting Association shall not be required to provide coverage for any
type of risk for which there are no insurers providing similar coverage in
this state. The department may designate one or more participating
insurers who agree to provide policyholder and claims service, including
the issuance of policies, on behalf of the participating insurers.
(a) The plan shall provide:
1. A means of establishing eligibility of a risk for obtaining insurance

through the plan, which provides that:
a. A risk shall be eligible for such property insurance or casualty
insurance as is required by Florida law if the insurance is unavailable in
the voluntary market, including the market assistance program and the
surplus lines market.

JOURNAL OF THE HOUSE]

b. A commercial risk not eligible under sub-subparagraph a. shall be
eligible for property or casualty insurance if:
(I) The insurance is unavailable in the voluntary market, including the
market assistance plan and the surplus lines market;
(II) Failure to secure the insurance would substantially impair the
ability of the entity to conduct its affairs; and
(III) The risk is not determined by the Risk Underwriting Committee
to be uninsurable.
c. In the event the Federal Government terminates the Federal Crime
Insurance Program established under Title 44, Code of Federal
Regulations, ss. 80-83, Florida commercial and residential risks previously
insured under the federal program shall be eligible under the plan.
d.(I) In the event a risk is eligible under this paragraph and in the event
the market assistance plan receives a minimum of 100 applications for
coverage within a 3-month period, or 200 applications for coverage within
a 1-year period or less, for a given class of risk contained in the
classification system defined in the plan of operation of the Joint
Underwriting Association, and unless the market assistance plan provides
a quotation for at least 80 percent of such applicants, such classification
shall immediately be eligible for coverage in the Joint Underwriting
Association. Provided, however,
(II) As an alternative to the procedure specified in sub-sub-
subparagraph (I), a classification is immediately eligible for coverage if
the risk is eligible under this paragraph and if the department
determines, after consulting with the insurers authorized to write
property and casualty insurance in this state, that any class, line, or type
of coverage of property or casualty insurance is not available at adequate
levels from insurers authorized to transact and actually write that kind
and class of insurance in this state or in a particular geographic area. This
sub-sub-subparagraph is repealed on July 1, 1996.
(III) Any market assistance plan application which is rejected because
an individual risk is so hazardous as to be practically uninsurable,
considering whether the likelihood of a loss for such a risk is substantially
higher than for other risks of the same class due to individual risk
characteristics, prior loss experience, unwillingness to cooperate with a
prior insurer, physical characteristics and physical location shall not be
included in the minimum percentage calculation provided above. In the
event that there is any legal or administrative challenge to a determination
by the department that the conditions of this subparagraph have been met
for eligibility for coverage in the Joint Underwriting Association for a given
classification, any eligible risk may obtain coverage during the pendency
of any such challenge.
e. In order to qualify as a quotation for the purpose of meeting the
minimum percentage calculation in this subparagraph, the quoted
premium must meet the following criteria:
(I) In the case of an admitted carrier, the quoted premium must not
exceed the premium available for a given classification currently in use by
the Joint Underwriting Association or the premium developed by using the
rates and rating plans on file with the department by the quoting insurer,
whichever is greater.
(II) In the case of an authorized surplus lines insurer, the quoted
premium must not exceed the premium available for a given classification
currently in use by the Joint Underwriting Association by more than 25
percent, after consideration of any individual risk surcharge or credit.
f.e Any agent who falsely certifies the unavailability of coverage as
provided by sub-subparagraphs a. and b., is subject to the penalties
provided in s. 626.611.
g.(I) The Legislature finds that the market conditions which this
subsection is intended to remedy have arisen with respect to coverage for
condominium associations, apartment buildings, and other commercial
coverages of residences. Therefore, coverage under this subsection is
hereby activated for condominium associations, apartment buildings, and

other commercial coverages of residences. Such coverage shall continue
to be provided under this subsection until coverage is deactivated
pursuant to sub-sub-subparagraph (II) or sub-sub-subparagraph (III).

November 3, 1993

appointed to serve for 2-year terms beginning on a date designated by the
plan and shall serve at the pleasure of the commissioner. Members may be
reappointed for subsequent terms.
(b)1. With respect to coverage of residential structures, it is the intent
of the Legislature that the rates for coverage provided by the association

E OF REPRESENTATIVES 57

(II) The board shall, at least annually, review the need for coverage
under this subsection. Upon recommendation by the board or any other
interested party, the department may deactivate coverage if the
department finds that the conditions giving rise to activation no longer
exist.
(III) It is the intent of the Legislature that activation of coverage
pursuant to sub-sub-subparagraph (I) and the alternative means for
activation specified in sub-sub-subparagraph d.(II) be reviewed by the
Legislature prior to July 1, 1996. No policies may be written pursuant to
sub-sub-subparagraph (I) after July 1, 1996. Sub-sub-subparagraph
d.(II) is repealed on July 1, 1996.
2. A means for the equitable apportionment of profits or losses and
expenses among participating insurers.
3. Rules for the classification of risks and rates which reflect the past
and prospective loss experience.
4. A rating plan which reasonably reflects the prior claims experience
of the insureds. Such rating plan shall include at least two levels of rates
for risks that have favorable loss experience and risks that have
unfavorable loss experience, as established by the plan.
5. Reasonable limits to available amounts of insurance. Such limits
may not be less than the amounts of insurance required of eligible risks by
Florida law.
6. Risk management requirements for insurance where such
requirements are reasonable and are expected to reduce losses.
7. Deductibles as may be necessary to meet the needs of insureds.
8. Policy forms which are consistent with the forms in use by the
majority of the insurers providing coverage in the voluntary market for the
coverage requested by the applicant.
9. A means to remove risks from the plan once such risks no longer meet
the eligibility requirements of this paragraph. For this purpose, the plan
shall include the following requirements: At each 6-month interval after
the activation of any class of insureds, the board of governors or its
designated committee shall review the number of applications to the
market assistance plan for that class. If, based on these latest numbers, at
least 90 percent of such applications have been provided a quotation, the
Joint Underwriting Association shall cease underwriting new applications
for such class within 30 days, and notification of this decision shall be sent
to the Insurance Commissioner, the major agents' associations, and the
board of directors of the market assistance plan. A quotation for the
purpose of this subparagraph shall meet the same criteria for a quotation
as provided in sub-subparagraph d. All policies which were previously
written for that class shall continue in force until their normal expiration
date, at which time, subject to the required timely notification of
nonrenewal by the Joint Underwriting Association, the insured may then
elect to reapply to the Joint Underwriting Association according to the
requirements of eligibility. If, upon reapplication, those previously insured
Joint Underwriting Association risks meet the eligibility requirements, the
Joint Underwriting Association shall provide the coverage requested.
10. A means for providing credits to insurers against any deficit
assessment levied pursuant to paragraph (c), for risks voluntarily written
through the market assistance plan by such insurers.
11. That the Joint Underwriting Association shall operate subject to
the supervision and approval of a board of governors consisting of 13
individuals appointed by the Insurance Commissioner, and shall have an
executive or underwriting committee. At least four of the members shall
be representatives of insurance trade associations as follows: one member
from the American Insurance Association, one member from the Alliance
of American Insurers, one member from the National Association of
Independent Insurers, and one member from an unaffiliated insurer
writing coverage on a national basis. Two representatives shall be from two
of the statewide agents' associations. Each board member shall be

58 JOURNAL OF THE HOUSE

be actuarially sound and that the association function as a residual
market mechanism to provide insurance only when the insurance is
unavailable in the voluntary market. Rates shall include an appropriate
catastrophe factor that reflects the actual catastrophic exposure of the
association. As soon as the association has developed sufficient loss
experience, rates of the association shall be based on the association's
actual loss experience and expenses, together with such catastrophe
loading factor.
2. This subparagraph applies to any coverage other than coverage of
residential structures. Rates used by the Joint Underwriting Association
shall be actuarially sound. To the extent applicable, the rate standards set
forth in s. 627.062 shall be considered by the department in establishing
rates to be used by the joint underwriting plan. The initial rate level shall
be determined using the rates, rules, rating plans, and classifications
contained in the most current Insurance Services Office (ISO) filing with
the department or the filing of other licensed rating organizations with an
additional increment of 25 percent of premium. For any type of coverage
or classification which lends itself to manual rating for which Insurance
Services Office or another licensed rating organization does not file or
publish a rate, the Joint Underwriting Association shall file and use an
initial rate based on the average current market rate. The initial rate level
for the rate plan shall also be subject to an experience and schedule rating
plan which may produce a maximum of 25 percent debits or credits. For
any risk which does not lend itself to manual rating and for which no rate
has been promulgated under the rate plan, the board shall develop and file
with the commissioner, subject to his approval, appropriate criteria and
factors for rating the individual risk. Such criteria and factors shall include,
but not be limited to, loss rating plans, composite rating plans, and unique
and unusual risk rating plans. The initial rates required under this
paragraph shall be adjusted in conformity with future filings by the
Insurance Services Office with the department and shall remain in effect
until such time as the Joint Underwriting Association has sufficient data
as to independently justify an actuarially sound change in such rates.
(c)l. In the event an underwriting deficit exists for any policy year the
plan is in effect, any surplus which has accrued from previous years and
is not projected within reasonable actuarial certainty to be needed for
payment for claims in the year the surplus arose shall be used to offset the
deficit to the extent available.
2. As to any remaining deficit, the Board of Governors of the Joint
Underwriting Association shall levy and collect an assessment in an
amount sufficient to offset such deficit. Such assessment shall be levied
against the insurers participating in the plan during the year giving rise to
the assessment. Any assessments against insurers for the lines of property
and casualty insurance issued to commercial risks shall be recovered from
the participating insurers in the proportion that the net direct premium
of each insurer for commercial risks written during the preceding calendar
year bears to the aggregate net direct premium written for commercial risks
by all members of the plan for the lines of insurance included in the plan.
Any assessments against insurers for the lines of property and casualty
insurance issued to personal risks eligible under sub-subparagraph (a)1.a.
or sub-subparagraph (a)l.c. shall be recovered from the participating
insurers in the proportion that the net direct premium of each insurer for
personal risks written during the preceding calendar year bears to the
aggregate net direct premium written for personal risks by all members of
the plan for the lines of insurance included in the plan.
3. The board shall take all reasonable and prudent steps necessary to
collect the amount of assessment due from each participating insurer and
policyholder, including, if prudent, filing suit to collect such assessment.
If the board is unable to collect an assessment from any insurer, the
uncollected assessments shall be levied as an additional assessment against
the participating insurers and any participating insurer required to pay an
additional assessment as a result of such failure to pay shall have a cause
of action against such nonpaying insurer.
4. Any funds or entitlements that the state may be eligible to receive

by virtue of the Federal Government's termination of the Federal Crime
Insurance Program referenced in sub-subparagraph (a)1.c. may be used
under the plan to offset any subsequent underwriting deficits that may
occur from risks previously insured with the Federal Crime Insurance
Program.

I]

The acceptance or rejection of a risk by the underwriting committee shall
be construed as the private placement of insurance and the provisions of
chapter 120 shall not apply.
(6) RESIDENTIAL PROPERTY AND CASUALTY JOINT
UNDERWRITING ASSOCIATION.-

E OF REPRESENTATIVES November 3, 1993

5. Assessments shall be included as an appropriate factor in the
making of rates.
6.a. The Legislature finds that the potential for unlimited
assessments under this paragraph may induce insurers to attempt to
reduce their writings in the voluntary market, and that such actions
would worsen the availability problems that the association was created
to remedy. It is the intent of the Legislature that insurers remain fully
responsible for covering any deficits of the association; however, it is also
the intent of the Legislature to provide a means by which assessment
liabilities may be amortized over a period of years.
b. The total amount of deficit assessments under this paragraph with
respect to any year may not exceed 10 percent of the statewide total gross
written premium for all insurers for the coverages referred to in the
introductory language of this subsection for the prior year, except that
if the deficit with respect to any plan year exceeds such amount and
bonds are issued under sub-subparagraph c. to defray the deficit, the total
amount of assessments with respect to such deficit may not in any year
exceed 10 percent of the deficit, or such lesser percentage as is sufficient
to retire the bonds as determined by the board, and shall continue
annually until the bonds are retired.
c. The governing body of any unit of local government, any residents
or businesses of which are insured by the association, may issue bonds as
defined in s. 125.013 or s. 166.101 from time to time to fund an assistance
program, in conjunction with the association, for the purpose of defraying
deficits of the association. The unit of local government shall enter into
such contracts with the association as are necessary to carry out this
paragraph. Any bonds issued under this sub-subparagraph shall be
payable from and secured by moneys received by the association from
assessments under this paragraph, and assigned and pledged to or on
behalf of the unit of local government for the benefit of the holders of such
bonds. The funds, credit, property, and taxing power of the state or of the
unit of local government shall not be pledged for the payment of such
bonds.
7. The plan shall provide for the deferment, in whole or in part, of the
assessment of an insurer if the department finds that payment of the
assessment would endanger or impair the solvency of the insurer. In the
event an assessment against an insurer is deferred in whole or in part, the
amount by which such assessment is deferred may be assessed against the
other member insurers in a manner consistent with the basis for
assessments set forth in subparagraph 2.
(d) Upon adoption of the plan, all insurers authorized in this state to
underwrite property or casualty insurance shall participate in the plan.
(e) A Risk Underwriting Committee of the Joint Underwriting
Association composed of three members experienced in evaluating
insurance risks is created to review risks rejected by the voluntary market
for which application is made for insurance through the joint underwriting
plan. The committee shall consist of a representative of the market
assistance plan created under s. 627.3515, a member selected by the
insurers participating in the Joint Underwriting Association, and a
member named by the Insurance Commissioner. The Risk Underwriting
Committee shall appoint such advisory committees as are provided for in
the plan and are necessary to conduct its functions. The salaries and
expenses of the members of the Risk Underwriting Committee and its
advisory committees shall be paid by the joint underwriting plan. The plan
approved by the department shall establish criteria and procedures for use
by the Risk Underwriting Committee for determining whether an
individual risk is so hazardous as to be uninsurable. In making this
determination and in establishing the criteria and procedures, the
following shall be considered:
1. Whether the likelihood of a loss for the individual risk is
substantially higher than for other risks of the same class; and
2. Whether the uncertainty associated with the individual risk is such
that an appropriate premium cannot be determined.

JOURNAL OF THE HOUSI

(a) There is created a joint underwriting association for equitable
apportionment or sharing among insurers of property and casualty
insurance covering residential property, for applicants who are in good
faith entitled, but are unable, to procure insurance through the admitted
voluntary market. The association shall operate pursuant to a plan of
operation approved by order of the department. The association shall
submit a proposed plan of operation to the department no later than
January 15, 1993. The plan is subject to continuous review by the
department. The department may withdraw approval of all or part of a
plan if the department determines that conditions have changed since
approval was granted and that the purposes of the plan require changes in
the plan.
(b) All insurers authorized to write such insurance in this state must
participate in and be members of the Residential Property and Casualty
Joint Underwriting Association. Each member's portion of losses and
expenses incurred must be in the proportion that the direct premiums of
the member written on residential property in this state during the
preceding calendar year bear to the aggregate direct premiums of all
members of the association written on residential property in this state
during the preceding calendar year. After review of annual statements,
other reports, and any other statistics that it deems necessary, the
department must certify to the association the aggregate direct premiums
written on residential property in this state by all members.
(c) The plan of operation of the association:
1. May provide for one or more designated insurers, able and willing to
provide policy and claims service, to act on behalf of the association to
provide such service. If more than one insurer is designated, each licensed
agent shall be entitled to select the insurer who will service the business
placed by the agent.
2. Must provide for adoption of residential property and casualty
insurance policy forms, which forms must be approved by the department
prior to use. For the purpose of this section, residential property and
casualty insurance includes:
a. As to homeowners' insurance, a policy that provides coverage for
accidental loss or damage to a structure with losses to be adjusted on the
basis of costs of repair or replacement not to exceed a stated amount, with
liability coverage up to $100,000 per claim and $300,000 per occurrence,
and with coverages for personal property and contents as are customarily
provided without additional premium charge in connection with such
policy forms; provided that such coverage and other terms, conditions,
limitations, and exclusions of such policy shall be as would be considered
standard within the insurance industry.
b. As to mobile homeowners' insurance, a policy that provides coverage
for accidental loss or damage to a structure consistent with s. 627.702, with
liability coverage in amounts up to $100,000 per claim and $300,000 per
occurrence, and with coverages for personal property and contents as are
customarily provided without additional premium charge in connection
with such policy forms. Other terms, conditions, limitations, and exclusions
of such policy shall be as would be considered standard within the
insurance industry.
c. As to condominium unit owners' insurance, coverage for accidental
loss or damage to portions of the structure and fixtures of the unit owner
that are not the responsibility of the condominium association as provided
by Florida law, with losses to be adjusted on the basis of costs of repair or
replacement not to exceed stated amounts; coverage for personal property
and contents as is normally included in such policy forms without
additional premium charge; and liability coverages not to exceed limits of
$100,000 per claim and $300,000 aggregate per occurrence; provided that
such coverage and other terms, conditions, limitations, and exclusions of
such policy shall be as would be considered standard within the insurance
industry.
d. As to rental dwelling insurance, coverage for accidental loss or
damage to a structure with coverage to be based on costs of repair or
replacement not to exceed a stated amount, and with liability coverage in
amounts up to $100,000 per claim and $300,000 per occurrence; provided
that such coverage and other terms, conditions, limitations, and exclusions

of such policy shall be as would be considered standard within the
insurance industry.

November 3, 1993

Underwriting Committee shall appoint such advisory committees as are
provided for in the plan and are necessary to conduct its functions. The
salaries and expenses of the members of the Risk Underwriting Committee
and its advisory committees shall be paid by the association. The plan
approved by the department shall establish objective criteria and

E OF REPRESENTATIVES 59

e. As to tenants' insurance, coverage for accidental loss or damage to
betterments and improvements in the rented dwelling unit, with losses to
be adjusted on the basis of costs of repair or replacement not to exceed
stated amounts; coverage for personal property and contents in such limits
as may be selected by the board; and liability coverages in amounts up to
$100,000 per claim and $300,000 per occurrence; provided that such
coverage and other terms, conditions, limitations, and exclusions of such
policy shall be as would be considered standard within the insurance
industry.
Any policy under this subparagraph must provide deductibles for
residential property and casualty insurance in a minimum of $500 per
occurrence, or such higher limits as may be selected by the insured. Policies
issued under this subparagraph shall not cover loss or damage caused by
the enforcement of any ordinance or law regulating the construction, use,
or repair of any property, or requiring the tearing down of any property,
including the cost of removing its debris.
3. May provide that the association may employ or otherwise contract
with individuals or other entities to provide administrative or professional
services that may be appropriate to effectuate the plan, and shall have the
power to borrow funds and other powers reasonably necessary to effectuate
the requirements of this subsection.
4. Must require that the association operate subject to the supervision
and approval of a board of governors consisting of 13 individuals, including
1 who is elected as chairman. The board shall consist of:
a. The insurance consumer advocate appointed under s. 627.0613.
b. Five members designated by the insurance industry.
c. Five consumer representatives appointed by the Insurance
Commissioner. Two of the consumer representatives must be holders of
policies issued by the association, who are selected with consideration given
to reflecting the geographic balance of association policyholders. Two of
the consumer members must be individuals who are minority persons as
defined in s. 288.703(3). One of the consumer members shall have expertise
in the field of mortgage lending.
d. Two representatives of the insurance industry appointed by the
Insurance Commissioner. Of the two insurance industry representatives
appointed by the Insurance Commissioner, at least one must be an
individual who is a minority person as defined in s. 288.703(3).
Any board member may be disapproved or removed and replaced by the
commissioner at any time for cause. All board members, including the
chairman, must be appointed to serve for 3-year terms beginning annually
on a date designated by the plan.
5. Must provide that a risk is eligible to be insured under the plan only
after coverage is activated pursuant to paragraph (e) and an attempt has
been made to place the risk with an admitted insurer through the market
assistance plan under s. 627.3515, which attempt was not successful, and
only if the risk is determined to be insurable by the risk underwriting
committee. A risk shall cease to be eligible if it receives a premium
quotation from an admitted carrier at that carrier's filed rate.
6. Must include rules for classifications of risks and rates therefore.
7. Must provide that if premium and investment income attributable
to a particular plan year are in excess of projected losses and expenses of
the plan attributable to that year, such excess shall be held in surplus. Such
surplus shall be available to defray deficits as to future years and shall be
used for that purpose prior to assessing member insurers as to any plan
year.
8. Must provide for a Risk Underwriting Committee of the association
composed of three members experienced in evaluating insurance risks, to
review and determine insurability of risks rejected by the voluntary market
for which application is made for insurance through the association. The
committee shall consist of a representative of the market assistance plan
created under s. 627.3515 and two members named by the board. The Risk

60

procedures for use by the Risk Underwriting Committee to be uniformly
applied for all applicants in determining whether an individual risk is so
hazardous as to be uninsurable. In making this determination and in
establishing the criteria and procedures, the following shall be considered:
a. Whether the likelihood of a loss for the individual risk is
substantially higher than for other risks of the same class; and
b. Whether the uncertainty associated with the individual risk is such
that an appropriate premium cannot be determined.
The acceptance or rejection of a risk by the underwriting committee shall
be construed as the private placement of insurance, and the provisions of
chapter 120 shall not apply.
(d)l. It is the intent of the Legislature that the rates for coverage
provided by the association be actuarially sound and that the association
function as a residual market mechanism to provide insurance only when
the insurance cannot be procured in the voluntary market. Rates of the
plan shall be based on the association's actual loss experience and
expenses, together with an appropriate catastrophe loading factor that
reflects the actual catastrophic exposure of the association average- les
coots of the five largest reoidential insurero, by premium volume in thie
state, plus appropriate faetoro for eatastrophe loading, projected expenoee
of the plan, and a 26 percent increment for presumed adverse selection.
2. No later than March 31 and September 30 of each 9 months-after
thc nd of each canldar year, the board must review and file with the
department the loss and expense experience of the association. Such filing
shall include a rate filing baed on the loo and expeno ep riee and
other relevant factors if the board determined that ouch a filing io
appropriate. Any such rate filing shall contain sufficient detail to enable
the department to determine that the proposed rates are not inadequate,
excessive, or unfairly discriminatory pursuant to the standards provided
herein and in s. 627.062.
(e) Coverage through the association is hereby activated effective upon
approval of the plan, and shall remain activated until coverage is
deactivated pursuant to paragraph (f). Thereafter, coverage through the
association shall be reactivated by order of the department only under one
of the following circumstances:
1. If the Market Assistance Plan receives a minimum of 100
applications for coverage within a 3-month period, or 200 applications for
coverage within a 1-year period or less for residential coverage, unless the
Market Assistance Plan provides a quotation from admitted carriers at
their filed rates for at least 90 percent of such applicants. Any Market
Assistance Plan application that is rejected because an individual risk is
so hazardous as to be uninsurable using the criteria specified in
subparagraph (c)8. shall not be included in the minimum percentage
calculation provided herein. In the event that there is a legal or
administrative challenge to a determination by the department that the
conditions of this subparagraph have been met for eligibility for coverage
in the association, any eligible risk may obtain coverage during the
pendency of such challenge.
2. In response to a state of emergency declared by the Governor under
s. 252.36, the department may activate coverage by order for the period of
the emergency upon a finding by the department that the emergency
significantly affects the availability of residential property insurance.
(f) The activities of the association shall be reviewed at least annually
by the board and, upon recommendation by the board or petition of any
interested party, coverage shall be deactivated if the department finds that
the conditions giving rise to its activation no longer exist.
(g)1. The board shall certify to the department its needs for annual
assessments as to a particular calendar year, and any startup or interim
assessments that it deems to be necessary to sustain operations as to a
particular year pending the receipt of annual assessments. After the
department approves such certification, the board shall levy such annual,
startup, or interim assessments. Such assessments shall be prorated as
provided in paragraph (b). The board shall take all reasonable and prudent
steps necessary to collect the amount of assessment due from each
participating insurer, including, if prudent, filing suit to collect such

assessment. If the board is unable to collect an assessment from any
insurer, the uncollected assessments shall be levied as an additional

November 3, 1993

assessment against the participating insurers and any participating insurer
required to pay an additional assessment as a result of such failure to pay
shall have a cause of action against such nonpaying insurer. Assessments
shall be included as an appropriate factor in the making of rates.
2.a. The Legislature finds that the potential for unlimited
assessments under this paragraph may induce insurers to attempt to
reduce their writings in the voluntary market, and that such actions
would worsen the availability problems that the association was created
to remedy. It is the intent of the Legislature that insurers remain fully
responsible for covering any deficits of the association; however, it is also
the intent of the Legislature to provide a means by which assessment
liabilities may be amortized over a period of years.
b. The total amount of deficit assessments under this paragraph with
respect to any year may not exceed 10 percent of the statewide total gross
written premium for all insurers for the coverages referred to in
paragraph (a) for the prior year, except that if the deficit with respect to
any plan year exceeds such amount and bonds are issued under sub-
subparagraph c. to defray the deficit, the total amount of assessments
with respect to such deficit may not in any year exceed 10 percent of the
deficit, or such lesser percentage as is sufficient to retire the bonds as
determined by the board, and shall continue annually until the bonds are
retired.
c. The governing body of any unit of local government, any residents
of which are insured by the association, may issue bonds as defined in s.
125.013 or s. 166.101 from time to time to fund an assistance program, in
conjunction with the association, for the purpose of defraying deficits of
the association. The unit of local government shall enter into such
contracts with the association as are necessary to carry out this
paragraph. Any bonds issued under this sub-subparagraph shall be
payable from and secured by moneys received by the association from
assessments under this paragraph, and assigned and pledged to or on
behalf of the unit of local government for the benefit of the holders of such
bonds. The funds, credit, property, and taxing power of the state or of the
unit of local government shall not be pledged for the payment of such
bonds.
3. As a means of encouraging new insurers to enter the voluntary
market, the plan of operation of the association must provide a formula
that provides credits against assessments for an insurer's voluntarily
written personal lines residential coverage, other than coverage that
excludes the peril of windstorm, in areas that are determined by the board
to be areas of high-potential hurricane losses. This subsection applies
only if the insurer commenced writing personal lines residential coverage
in this state after the effective date of this act. The credit provided by this
subparagraph expires on December 31 of the first year in which the
insurer's statewide gross written premium for personal lines residential
coverage equals or exceeds 0.5 percent of the total statewide gross written
premium for personal lines residential coverage, or 3 years after the date
of issuance of the insurer's first personal lines residential policy in this
state, whichever occurs earlier.
4. The plan shall provide for the deferment, in whole or in part, of the
assessment of an insurer if the department finds that payment of the
assessment would endanger or impair the solvency of the insurer. In the
event an assessment against an insurer is deferred in whole or in part, the
amount by which such assessment is deferred may be assessed against the
other member insurers in a manner consistent with the basis for
assessments set forth in paragraph (b).
(h) Nothing in this subsection shall be construed to preclude the
issuance of residential property insurance coverage pursuant to part VIII
of chapter 626.
(i) There shall be no liability on the part of, and no cause of action of
any nature shall arise against, any member insurer or its agents or
employees, the Residential Property and Casualty Joint Underwriting
Association or its agents or employees, members of the board of governors,
or the department or its representatives for any action taken by them in
the performance of their duties under this subsection. Such immunity does

not apply to actions for breach of any contract or agreement pertaining to
insurance, or any other willful tort.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE]

(j) The Residential Property and Casualty Joint Underwriting
Association is not a state agency, board, or commission. However, for the
purposes of s. 199.183(1), the Residential Property and Casualty Joint
Underwriting Association shall be considered a political subdivision of the
state and shall be exempt from the corporate income tax and the insurance
premium tax.
(k) Upon a determination by the board of governors that the
conditions giving rise to the establishment and activation of the
association no longer exist, and upon the consent thereto by order of the
department, the association is dissolved. Upon dissolution, the assets of
the association shall be applied first to pay all debts, liabilities, and
obligations of the association, including the establishment of reasonable
reserves for any contingent liabilities or obligations, and all remaining
assets of the association shall become property of the state and deposited
in the Florida Hurricane Catastrophe Fund.
Section 10. Section 627.701, Florida Statutes, is amended to read:
627.701 Liability of insureds; coinsurance; deductibles eentracts.-
(1) A property insurer may issue an insurance policy or contract
covering either real or personal property in this state which contains
provisions requiring the insured to be liable as a coinsurer with the insurer
issuing the policy for any part of the loss or damage by covered peril to the
property described in the policy only if:
(a){4- The following words are printed or stamped on the face of the
policy, or a form containing the following words is attached to the policy:
"Coinsurance contract: The rate charged in this policy is based upon the
use of the coinsurance clause attached to this policy, with the consent of
the insured.";
(b)(-2 The coinsurance clause in the policy is clearly identifiable; and
(c){k3 The rate for the insurance with or without the coinsurance clause
is furnished the insured upon his request.
(2) Unless the department determines that the deductible provision
is clear and unambiguous, a property insurer may not issue an insurance
policy or contract covering real property in this state which contains a
deductible provision that:
(a) Applies solely to windstorm losses.
(b) States the deductible as a percentage rather than as a specific
amount of money.
Section 11. Pools of insurance adjusters.-The Department of
Insurance may, by rule, establish a pool of qualified insurance adjusters.
The rules must provide that, if a hurricane occurs or an emergency is
declared, the department may assign members of the pool to the affected
area and that an insurer may request that a member of the pool adjust
claims in the assigned area. The rules may not require that an insurer use
those adjusters assigned by the department.
Section 12. Concentration of property insurance exposures.-
(1) Each property insurer shall develop and implement a plan in order
to avoid a concentration of property insurance exposures that would render
the property insurer financially impaired or insolvent in the event of a
reasonably anticipated loss event.
(2) The Department of Insurance may, by rule, require that certain
property insurers report annually by geographic area their property
insurance exposures and the effect of reinsurance on those exposures.
(3) If the Department of Insurance determines that an insurer's
property insurance exposures are so concentrated that financial
impairment or insolvency is likely in the event of a reasonably anticipated
loss event, the department may require the insurer to submit to the
department within 60 days a plan under which the insurer will alter or
reduce the concentration of property insurance exposures to an
appropriate level within a reasonable period of time.
Section 13. Section 627.7011, Florida Statutes, is created to read:
627.7011 Homeowner's policies; offer of replacement cost coverage and
law and ordinance coverage.--

(1) Prior to issuing a homeowner's insurance policy on or after June 1,
1994, or prior to the first renewal of a homeowner's insurance policy on or
after June 1, 1994, the insurer must offer each of the following:

November 3, 1993

of Insurance Commissioners, as of January 1, 1993, and may prohibit oral
contracts between affiliated entities.
(3) Upon request, the department may waive the filing requirement
under this section for a domestic insurer that is the subsidiary of an
insurer that is in full compliance with the insurance holding company

E OF REPRESENTATIVES 61

(a) A policy or endorsement providing that any loss which is repaired
or replaced will be adjusted on the basis of replacement costs not exceeding
policy limits as to the dwelling, rather than actual cash value, but not
including costs necessary to meet applicable laws regulating the
construction, use, or repair of any property or requiring the tearing down
of any property, including the costs of removing debris.
(b) A policy or endorsement providing that, subject to other policy
provisions, any loss which is repaired or replaced will be adjusted on the
basis of replacement costs not exceeding policy limits as to the dwelling,
rather than actual cash value, and also including costs necessary to meet
applicable laws regulating the construction, use, or repair of any property
or requiring the tearing down of any property, including the costs of
removing debris; however, such additional costs necessary to meet
applicable laws may be limited to 25 percent of the dwelling limit, and such
coverage shall apply only to repairs of the damaged portion of the structure
unless the total damage to the structure exceeds 50 percent of the
replacement cost of the structure.
An insurer is not required to make the offers required by this subsection
with respect to the issuance or renewal of a homeowner's policy that
contains the provisions specified in paragraph (b). This subsection does not
prohibit the offer of a guaranteed replacement cost policy.
(2) Unless the insurer obtains the policyholder's written refusal of the
policies or endorsements specified in subsection (1), any policy covering
the dwelling is deemed to include the coverage specified in paragraph
(1)(b). The rejection or selection of alternative coverage shall be made on
a form approved by the department. The form shall fully advise the
applicant of the nature of the coverage being rejected. If this form is signed
by a named insured, it will be conclusively presumed that there was an
informed, knowing rejection of the coverage or election of the alternative
coverage on behalf of all insureds. Unless the policyholder requests in
writing the coverage specified in this section, it need not be provided in or
supplemental to any other policy that renews insures, extends, changes,
supercedes, or replaces an existing policy when the policyholder has
rejected the coverage specified in this section or has selected alternative
coverage. The insurer must provide such policyholder with notice of the
availability of such coverage in a form specified by the department at least
once every 3 years. The failure to provide such notice constitutes a
violation of this code, but does not affect the coverage provided under the
policy.
(3) Nothing in this section shall be construed to apply to policies not
considered to be "homeowners' policies," as that term is commonly
understood in the insurance industry. This section specifically does not
apply to mobile home policies. Nothing in this section shall be construed
as limiting the ability of any insurer to reject or nonrenew any insured or
applicant on the grounds that the structure does not meet underwriting
criteria applicable to replacement cost or law and ordinance policies or for
other lawful reasons.
Section 14. Section 628.801, Florida Statutes, is amended to read:
628.801 Insurance holding companies; registration; regulation.-
(1) Each Every insurer that which is authorized to do business in this
state and that which is a member of an insurance holding company shall
register with the department and is be subject to regulation with respect
to its relationship to such holding company as provided by rule or statute.
(2) The department shall adopt pr*emulgte rules establishing the
information and form required for registration and the manner in which
registered insurers and their affiliates shall be regulated. The rules shall
apply to domestic insurers, foreign insurers, and commercially domiciled
insurers, except a foreign insurer domiciled in states that are accredited
by the National Association of Insurance Commissioners by December 31,
1995. Except to the extent of any conflict with this code, the rules must
include all the requirements and standards of sections 4 and 5 of the
Insurance Holding Company System Regulatory Act and the Insurance
Holding Company System Model Regulation of the National Association

62 JOURNAL OF THE HOUSE

registration laws of its state of domicile if the state is accredited by the
National Association of Insurance Commissioners. Such rulac ahall bc in
oubotantial aonformity to thoea otandardo stt forth in chapter 4 26, Florida
Adminiotrative Code, ao ouch rule provioiono xiotad on January 1, 1985,
and hall be promulgated pursuant to o. 624.308. It io specifically provided
that, until ouperosding rule provioiono bccom offeetive, chapter 4 26,
Florida Adminiotrative Code, hall bo deemed to implement thio proviojon.
Section 15. Subsections (9) and (10) of section 631.011, Florida
Statutes, are amended to read:
631.011 Definitions.-For the purpose of this part, the term:
(9) "Impairment of capital" means that the minimum surplus required
to be maintained by in s. 624.408(3) has been dissipated and the insurer
is not possessed of assets at least equal to all its liabilities together with its
total issued and outstanding capital stock, if a stock insurer, or the
minimum surplus or net trust fund required by s. 624.407, if a mutual,
reciprocal, or business trust insurer.
(10) "Impairment of surplus" means that the surplus of a stock insurer,
the additional surplus of a mutual or reciprocal insurer, or the additional
net trust fund of a business trust insurer does not comply with the
requirements of s. 624.408().
Section 16. Personal lines residential property insurance.-
(1) Upon the expiration of the moratorium on the cancellation or
nonrenewal of personal lines residential property insurance policies
enacted by section 1 of chapter 93-401, Laws of Florida, the following
restrictions apply to the cancellation or nonrenewal of each personal lines
residential property insurance policy that was subject to the
moratorium:an insurer may cancel or nonrenew those policies in any
county, in any 12-month period, for the purpose of reducing the insurer's
exposure to hurricane claims to the extent that the number of policies
written at the end of the 12-month period is not more than 10 percent less
than the number written on the first day of the 12-month period. However,
in any 12-month period, an insurer may not cancel or nonrenew more than
5 percent of its policies in the state for the purpose of reducing the insurer's
exposure to hurricane claims. The limitations of this subsection apply
separately to each of the following: mobile home insurance policies,
residential property insurance policies other than mobile home policies,
and the total of all residential property insurance policies. In determining
the number of policies written on the first day of the 12-month period, a
canceled or nonrenewed policy during the succeeding 12-month period is
excluded if:
1. The policy was canceled or nonrenewed for an underwriting reason,
nonpayment of premium, or any other lawful reason that is unrelated to
the risk of loss from hurricane exposure.
2. The insured obtained replacement coverage from an authorized
insurer, other than the Florida Residential Property and Casualty Joint
Underwriting Association.
3. The cancellation or nonrenewal was initiated by the insured.
4. The cancellation or nonrenewal was due to the failure of the insured
to comply with a condition of coverage and was approved by the
Department of Insurance in order to reduce the risk of loss from hurricane
exposure.
(2) Each insurer that cancels or nonrenews personal lines residential
property insurance policies for the purpose of reducing hurricane exposure
shall, no later than January 15, 1995, file a report with the Department of
Insurance indicating the total number of personal lines residential policies
written by the insurer in each county of the state as of the first day of the
year, calculated in accordance with subsection (1), and the total number
of personal lines residential property policies written by the insurer in each
county of the state as of the last day of the year.
(3) This section does not apply to an insurer that, before August 24,
1992, initiated a plan to cease writing personal lines insurance throughout

the United States.
(4) This section does not apply to an insurer that demonstrates to the
department that cancellations or nonrenewals are necessary for the insurer
to avoid an unreasonable risk of insolvency. In reaching this determination,
the Department of Insurance shall consider the insurer's size, its market

I

E OF REPRESENTATIVES November 3, 1993

concentration, its general financial condition, the degree to which personal
lines residential property insurance comprises its insurance business in this
state, and the way in which these factors affect the risk to the insurer's
solvency in relation to its probable maximum loss in the event of a
hurricane. An insurer may not be required to risk more than its total
surplus to any objectively determined, probable maximum loss resulting
from a single hurricane in this state. The department must approve or
disapprove an application for a waiver within 90 days after the department
receives the application for the waiver.
(5) This section expires November 14, 1995.
Section 17. The Department of Insurance shall, within existing
resources, conduct a study of the appropriateness of classifying
condominium association master policies as commercial insurance policies,
including consideration of issues involved with the possible inclusion of
condominium association master policies within the Residential Property
and Casualty Joint Underwriting Association with a separate base for
deficient assessments, and including consideration of those provisions of
law applicable to personal lines policies that might also be applied to
condominium association policies. The department shall, by January 1,
1994, complete its study and make recommendations to the Speaker of the
House of Representatives, the President of the Senate, the majority and
minority leaders of each house, and the chairs of the committees of each
house having primary jurisdiction over insurance matters.
Section 18. This act shall take effect upon becoming a law.
And the title is amended as follows:
Strike everything before the enacting clause and insert: A bill to be
entitled An act relating to insurance; amending s. 624.307, F.S.; requiring
the Department of Insurance to develop an outreach program; creating s.
624.3215, F.S.; providing immunity from civil liability under certain
circumstances to persons who provide information about the financial
condition of an insurer to the department; amending s. 624.316, F.S.;
requiring the department to conduct periodic examinations of insurers;
amending s. 624.407, F.S.; increasing surplus requirements for prospective
insurers; deleting provisions that have had their effect; amending s.
624.408, F.S.; revising surplus requirements; creating s. 624.4243, F.S.;
providing for insurers to compute and report premium growth; amending
s. 625.305, F.S.; removing the requirement that the department approve
certain investments; amending s. 625.330, F.S., relating to investments by
title insurers; changing a cross-reference to the surplus requirements;
amending s. 627.351, F.S.; revising provisions relating to deficit
assessments in the windstorm insurance risk apportionment plan;
authorizing issuance of bonds on behalf of the plan; providing
circumstances under which a classification is eligible for coverage in the
Florida Property and Casualty Joint Underwriting Association; providing
criteria for rates; activating coverage relating to commercial coverages of
residences; providing for legislative review; providing for termination;
revising provisions relating to deficit assessments; authorizing issuance of
bonds for the association; providing legislative intent with respect to the
Residential Property and Casualty Joint Underwriting Association;
providing criteria for rates; requiring rate filings; revising provisions
relating to deficit assessments; authorizing issuance of bonds for the
association; providing for dissolution of the association; amending s.
627.701, F.S.; providing limitations on deductibles; providing for pools of
insurance adjusters in case of hurricanes or declared emergencies;
regulating the geographic concentration of property insurance exposure;
amending s. 628.801, F.S., relating to application of insurance holding
company rules to domestic insurers, foreign insurers, and commercially
domiciled insurers; providing exceptions; providing for rules; amending s.
631.011, F.S.; revising the cross-references in the definitions of the terms
"impairment of capital" and "impairment of surplus" to conform to changes
made by this act; providing for the post-moratorium cancellation and
nonrenewal of personal lines residential property insurance policies;
requiring the Department of Insurance to conduct a study of the
classification of condominium association coverage; requiring reports;

providing an effective date.
On motion by Rep. Cosgrove, the House refused to concur in Senate
Amendment 1 and requested the Senate to recede therefrom, or failing to
recede, requested the Senate to appoint a committee of conference to meet
with a like committee appointed by the House.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Thereupon, in anticipation of the Senate action, the Speaker appointed
the following Members as managers on the part of the House on CS/HBs
33-C & 43-C to serve with Rep. Cosgrove, Chair: Reps. Geller, Schultz and
Bainter, with Reps. Charles and Morroni, alternates.
The action, together with the bill and amendment thereto, was
immediately certified to the Senate.

Motions Relating to Committee References
On motion by Rep. Klein, agreed to by two-thirds vote, HB 35-C was
withdrawn from further consideration of the House.

Motion to Recess
Rep. Wallace moved that the House stand in recess for the purpose of
holding committee meetings and conducting other House business, to
reconvene at 2:00 p.m., Thursday, November 4. The motion was agreed to.

Recorded Votes
Rep. Graber:
Yea-CS/HB 31-C; CS/HBs 33-C & 43-C; HBs 71-C, 73-C; CS/HBs
85-C, 99-C, 15-C, 13-C & 23-C; HBs 89-C, 111-C

Prime Sponsors
HB 1-C-Armesto-Garcia
HB 3-C-Armesto-Garcia
HB 7-C-Hawkins, Kelly, Manrique, McAndrews, McClure,
D. Saunders, Valdes, Villalobos
HB 49-C-Armesto-Garcia
HM 51-C-Armesto-Garcia
HB 69-C-Armesto-Garcia
HB 71-C-Armesto-Garcia
HB 73-C-Armesto-Garcia

Co-sponsors
HB 7-C-Albright, Armesto-Garcia, Arnall, Bainter, Benson, Bitner,
Boyd, Bronson, Brown, Bullard, Burke, Casey, Charles, Clemons,
Constantine, Cosgrove, Couch, Crady, Crist, Davis, Dawson,
De Grandy, Edwards, Eggelletion, Feeney, Feren, Fuller, Futch, Gay,
Geller, Glickman, Greene, Hafner, Harris, Hawkes, Healey, Hill,
Ireland, Jacobs, Jamerson, Buddy Johnson, Jones, Kerrigan, King,
Klein, Laurent, Lawson, Littlefield, Logan, Merchant, Miller, Minton,
Mishkin, Mitchell, Morroni, Morse, Ogles, Peeples, Posey, Pruitt,
Rayson, Reddick, Ritchie, Roberts, Rojas, Rudd, Rush, Safley,
Sanderson, R. Saunders, Schultz, Sembler, Shepard, Sindler, Smith,
Stabins, Stafford, Starks, Sublette, Tedder, Thomas, Thrasher, Tobin,
Upchurch, Warner, Wise
HB 17-C-Bitner, Ogles
HB 27-C-Bainter, Chestnut, Dawson, Dennis, Greene, Hill, Jacobs,
Jamerson, Miller, Rush
HB 75-C-Brown, Gay, Hanson, Lawson, Roberts, Sembler
HB 81-C-Merchant
CS/HBs 85-C, 99-C, 15-C, 13-C & 23-C-Sindler
CS/HB 91-C-Stafford

Reports of Standing Committees
Received November 3:
The Committee on Rules & Calendar recommends the following pass:
HCR 67-C, with 1 amendment
The above bill was placed on the Calendar.

Recessed
Pursuant to the motion previously agreed to, the House recessed at
7:35 p.m., to reconvene at 2:00 p.m., Thursday, November 4.

November 3, 1993

63

The Journal oFTHE

House of Representatives

THIRD SPECIAL SESSION-"C" of 1992-1994

The House was called to order by the Speaker at 2:00 p.m.

Prayer
The following prayer was offered by the Reverend Hal Marchman of
Astor, upon invitation of Speaker Bolley L. Johnson:
Almighty God, You have encouraged us to be still and know that You are
God. We are all very still on the outside. Help each one of us to be still on
the inside and remember that You really are God. Shalom and Amen.
The following Members were recorded present:

The Chair
Abrams
Albright
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson

De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Goode
Gordon
Graber
Greene
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan

King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie

Roberts
Rojas
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

A quorum was present.
Conference Committee Managers Excused
The following Conference Committee Managers were excused from time
to time:
CS/HBs 33-C & 43-C (property and casualty insurance): Rep. Cosgrove,
Chair; Reps. Geller, Schultz and Bainter; alternates, Reps. Charles and
Morroni.

SB 12-C (workers' compensation): Rep. Lippman, Chair; Reps. Mackey,
Boyd, Burke, Hawkes and King, alternates; Reps. Wallace, Graber and
Warner.

Pledge
The Members, led by Nicholas Thomas, son of the Honorable David L.
Thomas, pledged allegiance to the Flag.

House Physician
The Speaker presented the Honorable David L. Thomas of Sarasota,
who served as Doctor of the Day.

The Journal
The Journal of November 3 was corrected and approved as corrected.

Introduction and Reference

By Representative Trammell-
HB 125-C-A bill to be entitled An act relating to correctional
facilities; setting forth legislative intent with respect to Specific
Appropriation 1934C contained in section 2B of chapter 91-193, Laws of
Florida; ratifying and affirming the selection process for obtaining
construction and operational services in the establishment of a privately
built and operated correctional facility; providing an effective date.
-was read the first time by title and referred to the Committees on
Corrections and Appropriations.

Messages from the Senate

The Honorable Bolley L. Johnson, Speaker
I am directed to inform the House of Representatives that the Senate has
passed CS/HB 31-C, with amendment, and requests the concurrence of the
House.
Joe Brown, Secretary

CS/HB 31-C-A bill to be entitled An act relating to the Florida
Hurricane Catastrophe Fund; creating s. 215.555, F.S.; providing findings
and purpose; providing definitions; creating the Florida Hurricane
Catastrophe Fund as a trust fund under the State Board of Administration;
specifying uses of moneys in the fund; specifying applicability of other
laws; requiring the fund and specified insurers to enter into reimbursement
contracts; specifying obligations of the fund under reimbursement
contracts; requiring reports; providing for loans; requiring payment of
reimbursement premium; providing for calculation of reimbursement
premium; specifying accounting and regulatory treatment of
reimbursement premium; requiring advance payment; providing
circumstances for issuance of revenue bonds on behalf of the fund;

64

Number 4

Thursday, November 4, 1993

__ __ _

_ __ __ __ __ I ___

JOURNAL OF THE HOUSE]

specifying pledged revenues; authorizing units of local government to issue
such bonds; requiring validation; authorizing emergency assessments;
authorizing the fund to procure reinsurance; authorizing borrowing by the
fund; authorizing the fund to expend certain moneys to support programs
to mitigate hurricane losses; providing for appointment of an advisory
council; providing for per diem and travel expenses; specifying
applicability of s. 19, Art. III, State Constitution, to the fund; providing
that violations constitute violations of the Insurance Code; providing for
reversion of fund assets to the General Revenue Fund upon termination;
providing for recommendations with respect to federal or multistate
catastrophic funds; providing an exemption from the deduction required
by s. 215.20(1), F.S.; amending s. 624.5091, F.S.; providing that retaliatory
tax does not apply to premiums and assessments paid to the Florida
Hurricane Catastrophe Fund; providing an effective date.

Senate Amendment 1 (with Title Amendment)-Strike
everything after the enacting clause and insert:
Section 1. Section 215.555, Florida Statutes, is created to read:
215.555 Florida Hurricane Catastrophe Fund.-
(1) FINDINGS AND PURPOSE.-The Legislature finds and declares
as follows:
(a) There is a compelling state interest in maintaining a viable and
orderly private sector market for property insurance in this state. To the
extent that the private sector is unable to maintain a viable and orderly
market for property insurance in this state, state actions to maintain such
a viable and orderly market are valid and necessary exercises of the police
power.
(b) As a result of unprecedented levels of catastrophic insured losses
in recent years, and especially as a result of Hurricane Andrew, numerous
insurers have determined that in order to protect their solvency, it is
necessary for them to reduce their exposure to hurricane losses. Also as a
result of these events, world reinsurance capacity has significantly
contracted, increasing the pressure on insurers to reduce their catastrophic
exposures.
(c) The inability of the private sector insurance and reinsurance
markets to maintain sufficient capacity to enable residents of this state to
obtain property insurance coverage in the private sector endangers the
economy of the state and endangers the public health, safety, and welfare.
Accordingly, state action to correct for this inability of the private sector
constitutes a valid and necessary public and governmental purpose.
(d) The insolvencies and financial impairments resulting from
Hurricane Andrew demonstrate that many property insurers are unable or
unwilling to maintain reserves, surplus, and reinsurance sufficient to
enable the insurers to pay all claims in full in the event of a catastrophe.
State action is therefore necessary to protect the public from an insurer's
unwillingness or inability to maintain sufficient reserves, surplus, and
reinsurance.
(e) A state program to provide reimbursement to insurers for a portion
of their catastrophic hurricane losses will create additional insurance
capacity sufficient to ameliorate the current dangers to the state's economy
and to the public health, safety, and welfare.
(f) It is essential to the functioning of a state program to increase
insurance capacity that revenues received be exempt from federal taxation.
It is therefore the intent of the Legislature that this program be structured
as a state trust fund under the direction and control of the State Board of
Administration and operate exclusively for the purpose of protecting and
advancing the state's interest in maintaining insurance capacity in this
state.
(2) DEFINITIONS.-As used in this section:
(a) "Actuarially indicated" means, with respect to premiums paid by
insurers for reimbursement provided by the fund, an amount determined
according to principles of actuarial science to be adequate, but not
excessive, in the aggregate, to pay current and future obligations and
expenses of the fund, including additional amounts if needed to retire
revenue bonds issued under subsection (6), and determined according to

principles of actuarial science to reflect each insurer's relative exposure to
hurricane losses.

November 4, 1993

board that a covered event has occurred with respect to that insurer, and
demonstrates to the board that the immediate receipt of moneys from the
fund is likely to prevent the insurer from becoming insolvent, the board
shall loan the insurer, at market interest rates, the amounts necessary to
maintain the solvency of the insurer, up to 50 percent of the board's

E OF REPRESENTATIVES 65

(b) "Covered event" means any hurricane or hurricanes that make
landfall in this state in 1 calendar year, that are declared to be hurricanes
by the National Hurricane Center, that cause aggregate insured losses in
excess of three times the property and casualty insurance industry's
Florida gross direct written premium for covered policies, and that cause
an insurer to sustain losses in excess of three times that insurer's net direct
written premium for the prior year from covered policies.
(c) "Covered policy" means any personal lines or commercial property
insurance policy covering property in this state, including, but not limited
to, any homeowner's, mobile home owner's, farm owner's, condominium
association, condominium unit owner's, or commercial multi-peril policy,
or any other policy covering a residential or commercial structure or its
contents issued by any authorized insurer, including any joint underwriting
association. "Covered policy" does not include any reinsurance agreement.
(d) "Losses" means direct incurred losses and loss adjustment
expenses.
(3) FLORIDA HURRICANE CATASTROPHE FUND CREATED.-
There is created the Florida Hurricane Catastrophe Fund to be
administered by the State Board of Administration. Moneys in the fund
may not be expended, loaned, or appropriated except to pay obligations of
the fund arising out of reimbursement contracts entered into under
subsection (4), payment of debts including obligations arising out of
revenue bonds issued under subsection (6), costs of the mitigation program
under subsection (7), costs of procuring reinsurance, and costs of
administration of the fund. The board shall invest the moneys in the fund
pursuant to ss. 215.44-215.52. Earnings from all investments shall be
retained in the fund. The board may employ or contract with such staff and
professionals as the board deems necessary for the administration of the
fund. The board may adopt rules to implement this section.
(4) REIMBURSEMENT CONTRACTS.-
(a) The board shall enter into a contract with each insurer writing
covered policies in this state to provide to the insurer the reimbursement
described in paragraph (b), in exchange for the reimbursement premium
paid into the fund under subsection (5). As a condition of doing business
in this state, each such insurer shall enter into such a contract.
(b) The contract shall contain a promise by the board to reimburse the
insurer for 75 percent of its losses from covered events in excess of three
times the insurer's gross direct written premium from covered policies for
the prior year. For companies with $15 million or less in surplus, that
reimbursement shall be at one and one-half times the insurers gross direct
written premium. The contract shall also provide for coordination with
other reinsurance paid or payable to each insurer so as to supplement but
not duplicate such other reinsurance recoveries. Other reinsurance paid or
payable to an insurer for losses not covered by the fund shall not reduce
the insurer's recovery from the fund.
(c) The contract shall also provide that the obligation of the board with
respect to all contracts covering a particular year shall not exceed the
moneys in the fund, together with the maximum amount that the board
is able to raise through the issuance of revenue bonds under subsection (6).
The contract shall require the board to annually notify insurers of the
fund's anticipated borrowing capacity for the next year.
(d) The contract shall require the insurer to report to the board on
April 1 of each year its losses from all hurricanes for the prior year; the
contract may also require preliminary loss reports prior to that date. The
contract shall require the board to determine, as soon as practicable after
receiving these reports, the amount of reimbursements due. If the board
determines that the assets of the fund, together with the amount that the
board determines that it is possible to raise through revenue bonds issued
under subsection (6), are insufficient to pay reimbursement to all insurers
at the level promised in the contract, the board shall establish the
reimbursement level at the highest level for which such assets and
borrowing capacity are sufficient.
(e) The contract shall provide that if an insurer demonstrates to the

66 JOURNAL OF THE HOUSE

estimate of the reimbursement due the insurer. The insurer's
reimbursement shall be reduced by an amount equal to the amount of the
loan and interest thereon.
(5) REIMBURSEMENT PREMIUMS.-
(a) Each reimbursement contract shall require the insurer to annually
pay to the fund an actuarially indicated premium for the reimbursement.
(b) The State Board of Administration shall select an independent
consultant to develop a formula for determining the actuarially indicated
premium to be paid to the fund. The formula shall specify, for each zip
code, the amount of premium to be paid by an insurer for each $1,000 of
insured value under covered policies in that zip code. The formula must
be approved by unanimous vote of the board. The board may, at any time,
revise the formula pursuant to the procedure provided in this paragraph.
(c) No later than April 1 of each year, each insurer shall notify the fund
of its insured values under covered policies by zip code, as of December 31
of the previous year. On the basis of these reports, the board shall calculate
the premium due from the insurer, based on the formula adopted under
paragraph (b). The insurer shall pay the required annual premium
pursuant to a periodic payment plan specified in the contract.
(d) All premiums paid to the fund under reimbursement contracts
shall be treated as premium for approved reinsurance for all accounting
and regulatory purposes.
(e) In order to provide startup moneys for the administration of the
fund, each insurer subject to this section shall pay to the fund an advance
premium payment of $1,000 no later than January 1, 1994. The
Department of Insurance shall collect the advance premium payments
required by this paragraph on behalf of the board. The insurer shall receive
a credit against future premiums for the advance payment.
(6) REVENUE BONDS.-
(a) Upon the occurrence of a hurricane and a determination that the
moneys in the fund are or will be insufficient to pay reimbursement at the
levels promised in the reimbursement contracts, the board shall enter into
agreements with local governments for the issuance of revenue bonds for
the benefit of the fund. The term of the bonds may not exceed 15 years.
The board shall pledge all future revenues under subsection (5) and under
paragraph (c), or a lesser portion of such revenues sufficient to raise
moneys in an amount that will pay reimbursement at the levels promised
in the reimbursement contracts, to the retirement of such bonds. The
board may also enter into such agreements in the absence of a hurricane
upon a determination that such action would maximize the ability of the
fund to meet future obligations.
(b) The governing body of any county or municipality may issue bonds
as defined in s. 125.013 or s. 166.101 from time to time to fund an assistance
program, in conjunction with the Florida Hurricane Catastrophe Fund, for
the purpose of meeting the reimbursement obligations of the fund. The
issuance of such bonds is for the public purpose of ensuring that
policyholders located within the county or municipality are able to recover
under property insurance policies after a covered event. Revenue bonds
may not be issued until validated pursuant to the provisions of chapter 75.
The county or municipality shall enter into such contracts with the fund
as are necessary to carry out this section. Any bonds issued under this
section shall be payable from and secured by moneys received by the fund
under subsection (5), and assigned and pledged to or on behalf of the
county or municipality for the benefit of the holders of such bonds. The
funds, credit, property, and taxing power of the state or of the county or
municipality may not be pledged for the payment of such bonds.
(c) If the board determines that the amount of revenue produced under
subsection (5) is insufficient to fund revenue bonds to pay reimbursement
at the levels promised in the reimbursement contracts, the board shall
direct the Department of Insurance to levy an emergency assessment on
each insurer writing property and casualty business in this state. Pursuant
to the emergency assessment, each such insurer shall pay to the fund by

July 1 of each year an amount equal to 2 percent of its gross direct written
premium for the prior year from all property and casualty business in this
state except for workers' compensation. The annual assessments under this
paragraph shall continue until the revenue bonds issued with respect to
which the assessment was imposed are retired. An insurer shall not at any

]

Strike everything before the enacting clause and insert: A bill to be
entitled An act relating to the Florida Hurricane Catastrophe Fund;
creating s. 215.555, F.S.; providing findings and purpose; providing
definitions; creating the Florida Hurricane Catastrophe Fund as a trust
fund under the State Board of Administration; specifying uses of moneys

E OF REPRESENTATIVES November 4, 1993

time be subject to more than one assessment under this paragraph. Within
90 days after the assessment is levied under this paragraph, each insurer
subject to the assessment shall make a rate filing for all coverages on which
the assessment is based. If the filing reflects a rate change attributable
entirely to the assessment, the filing shall consist of a certification so
stating and shall be deemed approved when made, subject to the authority
of the Department of Insurance to require actuarial justification as to the
adequacy of any rate at any time.
(7) ADDITIONAL POWERS AND DUTIES.-
(a) The board may procure reinsurance from reinsurers approved
under s. 624.610 for the purpose of maximizing the capacity of the fund.
(b) In addition to borrowing under subsection (6), the board may also
borrow from any market sources at prevailing interest rates.
(c) If no covered events occurred in the prior calendar year, the board
may use up to 2 percent of the prior year's premium collected by the fund
for the purpose of grants to local governments, state agencies, and
nonprofit charitable organizations to support programs to mitigate
potential hurricane loss.
(8) ADVISORY COUNCIL.-The State Board of Administration shall
appoint a nine-member advisory council that consists of an actuary, a
meteorologist, an engineer, a representative of insurers, a representative of
insurance agents, a representative of reinsurers, and three consumers who
shall also be representatives of other affected professions and industries,
to provide the board with information and advice in connection with its
duties under this section. Members of the advisory council shall serve at
the pleasure of the board and are eligible for per diem and travel expenses
under s. 112.061.
(9) APPLICABILITY OF SECTION 19, ARTICLE III OF THE
STATE CONSTITUTION.-The Legislature finds that the Florida
Hurricane Catastrophe Fund created by this section is a trust fund
established for bond covenants, indentures, or resolutions within the
meaning of s. 19(f)(3), Art. III of the State Constitution.
(10) VIOLATIONS.-Any violation of this section constitutes a
violation of the Insurance Code.
(11) FEDERAL OR MULTISTATE CATASTROPHIC FUNDS.-
Upon the creation of a federal or multistate catastrophic insurance or
reinsurance program intended to serve purposes similar to the purposes of
the fund created by this section, the State Board of Administration shall
promptly make recommendations to the Legislature for coordination with
the federal or multistate program, for termination of the fund, or for such
other actions as the board finds appropriate in the circumstances.
Section 2. The Florida Hurricane Catastrophe Fund created by section
215.555, Florida Statutes, is exempt from the deduction required by section
215.20(1), Florida Statutes.
Section 3. Subsection (3) of section 624.5091, Florida Statutes, is
amended to read:
624.5091 Retaliatory provision, insurers.-
(3) This section does not apply as to personal income taxes, nor as to
ad valorem taxes on real or personal property, nor as to reimbursement
premiums paid to the Florida Hurricane Catastrophe Fund, nor as to
emergency assessments paid to the Florida Hurricane Catastrophe Fund,
nor as to special purpose obligations or assessments imposed by another
state in connection with particular kinds of insurance other than property
insurance, except that deductions, from premium taxes or other taxes
otherwise payable, allowed on account of real estate or personal property
taxes paid shall be taken into consideration by the department in
determining the propriety and extent of retaliatory action under this
section.
Section 4. This act shall take effect upon becoming a law.
And the title is amended as follows:

JOURNAL OF THE HOUSI

in the fund; specifying applicability of other laws; requiring the fund and
specified insurers to enter into reimbursement contracts; specifying
obligations of the fund under reimbursement contracts; requiring reports;
providing for loans; requiring payment of reimbursement premium;
providing for calculation of reimbursement premium; specifying
accounting and regulatory treatment of reimbursement premium;
requiring advance payment; providing circumstances for issuance of
revenue bonds on behalf of the fund; specifying pledged revenues;
authorizing counties or municipalities to issue such bonds; requiring
validation; authorizing emergency assessments; authorizing the fund to
procure reinsurance; authorizing borrowing by the fund; authorizing the
fund to expend certain moneys to support programs to mitigate hurricane
losses; providing for appointment of an advisory council; providing for per
diem and travel expenses; specifying applicability of s. 19, Art. III, State
Constitution, to the fund; providing that violations constitute violations of
the Insurance Code; providing for recommendations with respect to federal
or multistate catastrophic funds; providing an exemption from the
deduction required by s. 215.20(1), F.S.; amending s. 624.5091, F.S.;
providing that this section does not apply to reimbursement premiums or
emergency assessments paid to the Florida Hurricane Catastrophe Fund;
providing an effective date.
On motion by Rep. Cosgrove, the House refused to concur in Senate
Amendment 1 and requested the Senate to recede or failing to recede to
commit CS/HB 31-C to the Conference Committee considering CS/HBs
33-C & 43-C.

The Honorable Bolley L. Johnson, Speaker
I am directed to inform the House of Representatives that the Senate has
passed, as amended, SB 14-C; passed SB 30-C; passed, as amended, CS/SB
32-C and requests the concurrence of the House.

November 4, 1993

Joe Brown, Secretary Reconvened
Joe Brown, Secretary

By Senators Jennings and Childers-
SB 14-C-A bill to be entitled An act relating to the confidentiality of
provisions relating to workers' compensation; providing for the exemption
from s. 24, Art. I of the State Constitution and from sections 119.07(1) and
286.011, Florida Statutes, where appropriate, of matters relating to s.
440.13, F.S., pertaining to specified medical information about, and
discussions of the medical condition of, an injured employee; relating to s.
440.134, F.S., the Workers' Compensation Managed Care Organization
Act, pertaining to trade secrets and patients' identities and addresses;
relating to s. 440.45, F.S., pertaining to certain proceedings and
communications by, with, or before the Workers' Compensation Judicial
Commission; relating to s. 442.018, F.S., pertaining to the identity of any
employee who exercises rights granted under ch. 442, F.S., the "Florida
Occupational Safety and Health Act"; relating to s. 631.95, F.S., pertaining
to various reports and recommendations to the Department of Insurance
under the Florida Self-Insurance Fund Guaranty Association Act; relating
to s. 631.955, F.S., pertaining to negotiations between a self-insurance fund
and the Florida Self-Insurance Fund Guaranty Association; providing
statements of public necessity for these exemptions; providing for future
review of these exemptions; providing an effective date.
-was read the first time by title and referred to the Committee on
Governmental Operations.

By Senator Grogan-
SB 30-C-A bill to be entitled An act relating to administration of the
Defense Reinvestment Incentive Program; providing a public records
exemption for certain information received by the Department of
Commerce pursuant thereto; providing for future review and repeal in
accordance with s. 119.14, F.S.; providing legislative findings; providing an
effective date.
-was read the first time by title and referred to the Committee on
Governmental Operations.

By the Committee on International Trade, Economic Development and
Tourism and others-
CS for SB 32-C-A bill to be entitled An act relating to federal defense
contracts; providing legislative findings; providing for the establishment of

The House was called to order by the Speaker at 3:10 p.m. A quorum was
present.

Meeting on Juvenile Justice Issues
The Speaker asked Reps. Martinez, Ritchie, Long, Logan, Mortham and
Valdes to meet informally with Senate leaders on juvenile justice issues and
when doing so, observe proper notice requirements for conference
committees.

Waiver of Rule 6 for Committee Meetings and Bills
On motion by Rep. Reddick, Chair, the rules were waived and the
Committee on Tourism & Economic Development was given permission to
meet today at 4:30 p.m. in 413C to consider CS/SB 32-C.
On motion by Rep. Cosgrove, Chair, the rules were waived and the
Conference Committee on CS/HBs 33-C & 43-C (property and casualty
insurance) was given permission to meet today in 317C upon recess of the
House.
On motion by Rep. Lippman, Chair, the rules were waived and the
Conference Committee on SB 12-C (workers' compensation) was given
permission to meet today at 4:30 p.m. in Room EL Senate Office Building.

Messages from the Senate

The Honorable Bolley L. Johnson, Speaker
I am directed to inform the House of Representatives that the Senate has
refused to concur in House Amendment 1 to SB 12-C and acceded to the
request of the House for a Conference Committee.
The President has appointed the following Senators as the conferees on
the part of the Senate: Senator Childers, Chair; Senators Dantzler,
Jennings and Scott; Senators Jenne and Grant, alternates.
Joe Brown, Secretary

The Honorable Bolley L. Johnson, Speaker
I am directed to inform the House of Representatives that the Senate has
refused to recede from the Senate amendment to CS/HBs 33-C & 43-C and
acceded to the request of the House for a Conference Committee.

E OF REPRESENTATIVES 67

a Defense Reinvestment Incentive Program within the Department of
Commerce; providing for the issuance of vouchers to reimburse federal
defense contractors or subcontractors for certain costs; providing
definitions; providing requirements for applications for vouchers;
requiring the Division of Economic Development of the Department of
Commerce to review applications and adopt related rules; providing for the
division to forward evaluations of applications to the Defense
Reinvestment Incentive Advisory Committee of the department, which is
established by the act; providing for membership, terms of appointment,
meetings, and reimbursement of members for travel and per diem;
providing for the expenditure of the funds in the Economic Development
Trust Fund; amending s. 213.053, F.S., relating to confidentiality and
information sharing; providing that the Department of Revenue may
furnish certain information to the Department of Commerce in its
administration of the program; providing a penalty for a breach of
confidentiality; amending s. 288.095, F.S., relating to the Economic
Development Trust Fund; providing for the deposit of moneys into that
trust fund; amending s. 443.171, F.S., relating to the powers and duties of
the Division of Unemployment Compensation of the Department of Labor
and Employment Security; providing for that division to release certain
information to the Department of Commerce in its administration of the
Defense Reinvestment Incentive Program; providing an effective date.
-was read the first time by title and referred to the Committees on
Tourism & Economic Development, Finance & Taxation and
Appropriations.

Recessed
On motion by Rep. Crady, the House stood in informal recess at
2:37 p.m., to reconvene in 10 minutes or upon the call of the Speaker.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

The President has appointed the following Senators as the conferees on
the part of the Senate: Senator Holzendorf, Chair; Senators Grant, Jenne
and McKay; Senators Kirkpatrick and Kiser, alternates.
Joe Brown, Secretary

Motion to Recess
Rep. Wallace moved that the House stand in recess for the purpose of
holding committee meetings and conducting other House business, to
reconvene at 1:00 p.m., Friday, November 5. The motion was agreed to.

Recorded Votes
Rep. Morroni:
Yea-SB 12-C

Prime Sponsors
HB 87-C-Armesto-Garcia
HB 95-C-Armesto-Garcia
HB 109-C-Armesto-Garcia
HB 113-C-Sindler

Co-sponsors
HB 33-C-Klein
HB 39-C-Chestnut
HB 75-C-Mitchell
HB 81-C-Crist
HB 91-C-Arnall, Benson, Couch, Crist, Fuller, Hawkes, Buddy

Johnson, King, Littlefield, Manrique, Mortham, Thrasher, Warner
CS/HB 91-C-Bainter, Bitner, Burke, Casey, Constantine, De Grandy,
Futch, Jones, Klein, Laurent, Lawson, Morroni, Ogles, Posey, Pruitt,
Sanderson, Sembler, Thomas, Valdes, Wise
CS/CS/HB 91-C-Charles
HR 103-C-Hanson, Klein

Introduction and Reference

By Representative Bloom-
HR 121-C-A resolution in memory of Evelyn Gort, an off-duty Metro-
Dade law enforcement officer who was killed during a robbery.
First reading by publication (Art. III, s. 7, Florida Constitution).
Referred to the Committee(s) on Rules & Calendar.

By Representative Lippman-
HB 123-C-A bill to be entitled An act relating to motor vehicle license
plates; amending s. 320.1325, F.S.; providing for temporary registration for
certain motor vehicles; providing fees; providing for the disposition of fees;
providing an effective date.
Placed in the Committee on Rules & Calendar, the Speaker having ruled
the measure was outside the purview of the Call.

Recessed
Pursuant to the motion previously agreed to, the House recessed at
3:17 p.m., to reconvene at 1:00 p.m., Friday, November 5.

November 4, 1993

68

F The Journal OFTHE

House of Representatives

THIRD SPECIAL SESSION-"C" of 1992-1994

The House was called to order by the Speaker at 1:00 p.m.

Prayer

SB 12-C (workers' compensation): Rep. Lippman, Chair; Reps. Mackey,
Boyd, Burke, Hawkes and King; alternates, Reps. Wallace, Graber and
Warner.

The following prayer was offered by the Honorable Alzo J. Reddick of CS/CS/HB 91-C (weapons and firearms): Rep. Martinez, Chair; Reps.
Orlando: Long, Logan, Ritchie, Mortham and Valdes.

O gracious and everlasting Father, we ask Thy blessing on Thy people,
this earth, these United States and our state. Give us the wisdom to lead,
the courage to persist and the knowledge to do it in short time. All these
blessings we ask in Thy name. Amen and Shalom.
The following Members were recorded present:

The Chair
Abrams
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson

De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Goode
Gordon
Graber
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King

Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie

Roberts
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Excused: Reps. Albright and Greene; Rep. Thrasher after 4:00 p.m.;
Reps. Barreiro, De Grandy, Garcia and Manrique after 6:00 p.m.

Conference Committee Managers Excused
The following Conference Committee Managers were excused from time
to time: CS/HBs 33-C & 43-C (property and casualty insurance) and
CS/HB 31-C (hurricane catastrophe fund): Rep. Cosgrove, Chair; Reps.
Geller, Schultz and Bainter; alternates, Reps. Charles and Morroni.

A quorum was present.

Pledge
The Members, led by Nicholas Thomas, son of the Honorable David L.
Thomas, pledged allegiance to the Flag.

House Physician
The Speaker presented the Honorable Ben Graber of Coral Springs, who
served as Doctor of the Day.

The Journal
The Journal of November 4 was corrected and approved as corrected.

Messages from the Senate

The Honorable Bolley L. Johnson, Speaker
I am directed to inform the House of Representatives that the Senate has
passed CS/CS/HB 91-C, with amendment, and in the event the House
refuses to concur, requests a Conference Committee.
The President has appointed the following Senators as the conferees on
the part of the Senate: Senator Silver, Chair; Senators Beard, Meadows,
Siegel and Wexler; Senators Bankhead and Kurth, alternates.
Joe Brown, Secretary

CS/CS/HB 91-C-A bill to be entitled An act relating to weapons and
firearms; amending s. 790.17, F.S.; prohibiting certain transfer to a minor
of a weapon, or electric weapon or device; prohibiting sale or transfer to a
minor of a firearm and providing that a violation constitutes a third-degree
felony; amending s. 790.175, F.S.; redefining the term "minor"; requiring
that the purchaser of a firearm be informed that it is unlawful to store or
leave a firearm within access of a minor or to knowingly sell or transfer a
firearm to a minor or a person of unsound mind; amending s. 790.18, F.S.;
prohibiting an arms dealer from selling or transferring a firearm or certain
other weapons to a minor; increasing the penalty for a violation from a
misdemeanor to a felony; amending s. 790.22, F.S.; prohibiting a minor
from possessing a firearm; providing certain exceptions; prohibiting adults
responsible for a minor from knowingly permitting the minor to unlawfully
possess a firearm; providing penalties for a violation by an adult, including
community service in certain circumstances, and requiring the Department
of Health and Rehabilitative Services to provide a community service plan;
providing penalties for a violation by a minor; requiring that a minor
charged with certain offenses involving the use or possession of a firearm

69

Number 5

Friday, November 5, 1993

__ _

70

be detained in secure detention unless the state attorney authorizes the
minor's release; providing for a hearing within a specified period; requiring
the court to order a minimum mandatory period of secure detention in
addition to other punishments provided by law if the minor is found to
have committed certain offenses involving the use or possession of a
firearm and is not committed to a residential commitment program of the
Department of Health and Rehabilitative Services; providing for
mandatory revocation or suspension of the driving privilege if a minor is
found to have committed certain offenses involving the use or possession
of a firearm; providing for enhanced penalties; providing for the seizure
and disposal of a firearm used or possessed unlawfully by a minor;
providing that such provisions are supplemental to certain other criminal
sanctions; providing for the secure detention of a minor charged with a
violation of certain provisions of ch. 790, F.S., pending a court hearing;
amending s. 790.23, F.S.; prohibiting felons, and juveniles found to have
committed a delinquent act that would be a felony if committed by an
adult, from using or possessing a firearm under certain conditions;
providing exceptions; providing penalties; amending s. 790.25, F.S.;
limiting authorization for possession in private conveyance to persons over
18; providing appropriations; providing effective dates.

Senate Amendment 1 (with Title Amendment)-Strike
everything after the enacting clause and insert:
Section 1. Subsection (9) of section 39.045, Florida Statutes, is
amended to read:
39.045 Oaths; records; confidential information.-
(9) Any other provisions of this chapter to the contrary
notwithstanding, a law enforcement agency may release for publication the
name and address of a child taken into custody if the child is 16 years of
age or older and has been taken into custody by a law enforcement officer
for a violation of law which, if committed by an adult, would be a felony,
or the name and address of any child 16 years of age or older who has been
found by a court to have committed at least three or more violations of law
which, if committed by an adult, would be misdemeanors, or the name and
address of any child who has been adjudicated guilty of a capital felony,
life felony, or first degree felony, or a second degree felony involving
violence against a person. In addition, a law enforcement agency may
release for publication the name and address of a child who has been
convicted of any offense involving possession or use of a firearm.
Section 2. Section 790.17, Florida Statutes, is amended to read:
790.17 Furnishing weapons to minors under 18 years of age or persons
of unsound mind and furnishing firearms to minors under 18 years of age
prohibited,-ete.-
(1) A person who Whoeve-r sells, hires, barters, lends, transfers, or gives
any minor under 18 years of age any pistol, dirk, electric weapon or device,
or other arm-or weapon, other than an ordinary pocketknife, without
permission of the minor's parent or guardian of such minor, or the por
having charge of such minor, or sells, hires, barters, lends, transfers, or
gives to any person of unsound mind an electric weapon or device or any
dangerous weapon, other than an ordinary pocketknife, commits is-guilty
ef a misdemeanor of the first degree, punishable as provided in s. 775.082
or s. 775.083.
(2) A person may not knowingly sell or transfer a firearm to a minor
under 18 years of age except that a person may transfer ownership of a
firearm to a minor with permission of the parent or guardian. However,
the parent or guardian must maintain possession of the firearm except
pursuant to s. 790.22. A person who violates this subsection commits a
felony of the third degree, punishable as provided in s. 775.082, s. 775.083,
or s. 775.084.
Section 3. Section 790.175, Florida Statutes, is amended to read:
790.175 Transfer or sale of firearms; required warnings; penalties.-
(1) Upon the retail commercial sale or retail transfer of any firearm, the
seller or transferor shall deliver a written warning to the purchaser or
transferee, which warning states, in block letters not less than 1/4 inch in
height:

"IT IS UNLAWFUL, AND PUNISHABLE BY IMPRISONMENT
AND FINE, FOR ANY ADULT TO STORE OR LEAVE A

November 5, 1993

FIREARM IN ANY PLACE WITHIN THE REACH OR EASY
ACCESS OF A MINOR UNDER 18 YEARS OF AGE OR TO
KNOWINGLY SELL OR OTHERWISE TRANSFER OWNERSHIP
OR POSSESSION OF A FIREARM TO A MINOR OR A PERSON
OF UNSOUND MIND."
(2) Any retail or wholesale store, shop, or sales outlet which sells
firearms must conspicuously post at each purchase counter the following
warning in block letters not less than 1 inch in-height:
"IT IS UNLAWFUL TO STORE OR LEAVE A FIREARM IN ANY
PLACE WITHIN THE REACH OR EASY ACCESS OF A MINOR
UNDER 18 YEARS OF AGE OR TO KNOWINGLY SELL OR
OTHERWISE TRANSFER OWNERSHIP OR POSSESSION OF A
FIREARM TO A MINOR OR A PERSON OF UNSOUND MIND."
(3) Any person or business knowingly violating a requirement to
provide warning under this section commits a misdemeanor of the second
degree, punishable as provided in s. 775.082 or s. 775.083.
(4) As usod in this act, the term "minor" moans any peroon under tho
age-e f 6.
Section 4. Section 790.18, Florida Statutes, is amended to read:
790.18 Sale or transfer of Selling arms to minors by dealers.-It is
unlawful for any dealer in arms to sell or transfer to a minor miners any
firearm, pistol, Springfield rifle or other repeating rifle, bowie knife or dirk
knife, brass knuckles, slungshot, or electric weapon or device. A,-and-every
person who violates violating this section commits shall bo guilty of a
felony misdemeanor of the second fiit degree, punishable as provided in
s. 775.082, or s. 775.083, or 775.084.
Section 5. Section 790.22, Florida Statutes, is amended to read:
790.22 Use of BB guns, air or gas-operated guns, or electric weapons or
devices, -erfirearme by minor child under 16; limitation; possession of
firearms by minor under 18 prohibited; penalties.-
(1) The use for any purpose whatsoever of BB guns, air or gas-operated
guns, or electric weapons or devices, or firearms ao definRd in o. 790.001 by
any minor ehild under the age of 16 years is prohibited unless such use is
under the supervision and in the presence of an adult who is acting with
the consent of the minor's parent.
(2) Any adult responsible for the welfare of any child under the age of
16 years who knowingly permits such child to use or have in his possession
any BB gun, air or gas-operated gun, electric weapon or device, or firearm
in violation of the provisions of subsection (1) of this section commits is
guilty-of a misdemeanor of the second degree, punishable as provided in
s. 775.082 or s. 775.083.
(3) A minor under 18 years of age may not possess a firearm, other
than an unloaded firearm at his home, unless:
(a) The minor is engaged in a lawful hunting activity and is:
1. At least 16 years of age; or
2. Under 16 years of age and supervised by an adult.
(b) The minor is engaged in a lawful marksmanship competition or
practice or other lawful recreational shooting activity and is:
1. At least 16 years of age; or
2. Under 16 years of age and supervised by adult who is acting with
the consent of the minor's parent or guardian.
(c) The firearm is unloaded and is being transported by the minor
directly to or from an event authorized in paragraph (a) or paragraph (b).
(4) (a) Any parent or guardian of a minor, or other adult responsible
for the welfare of a minor, who knowingly and willfully permits the minor
to possess a firearm in violation of subsection (3) commits a misdemeanor
of the second degree, punishable as provided in s. 775.082, s. 775.083, or
s. 775.084.
(b) Any natural parent or adoptive parent, whether custodial or
noncustodial, or any legal guardian or legal custodian of a minor, if that
minor possesses a firearm in violation of subsection (3) may, if the court

finds it appropriate, be required to participate in classes on parenting
education which are approved by the Department of Health and

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE]

Rehabilitative Services, upon the first conviction. Upon any subsequent
conviction, the court may, if the court finds it appropriate, require the
parent to attend further parent education classes or render community
service hours together with the child.
(c) At any time after this act becomes law, but no later than July 1,
1994, the district juvenile justice boards of the Department of Health and
Rehabilitative Services shall establish appropriate community service
programs to be available to circuit courts in implementing this subsection.
The boards shall propose the implementation of a community service
program in each circuit, and may submit a circuit plan, to be
implemented upon approval of the court, at any time after this act
becomes law.
(d) For the purposes of this section, community service may be
provided on public property as well as on private property with the
expressed permission of the property owner. Any community service
provided on private property is limited to such things as removal of
graffiti and restoration of vandalized property.
(5) (a) A minor who violates subsection (3) commits a misdemeanor of
the first degree, and shall, in addition to any other penalty provided by
law, be required to perform not less than 100 hours of community service,
and:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 1 year.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period of up to 1 year.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 1 year after the date on which the
minor would otherwise have become eligible.
(b) For a second or subsequent offense, the minor shall be required to
perform not less than 250 hours of community service, and:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 2 years.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period of up to 2 years.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 2 years after the date on which the
minor would otherwise have become eligible.
(6) Any firearm that is possessed or used by a minor in violation of
this section shall be promptly seized by a law enforcement officer and
disposed of in accordance with s. 790.08(1)-(6).

November 5, 1993

(7) The provisions of this section are supplemental to all other 790.23 Felons and delinquents; possession of firearms or electric
provisions of law relating to the possession, use, or exhibition of a firearm. weapons or devices unlawful.-

(8) Notwithstanding s. 39.042 or s. 39.044(1), if a minor under 18 years
of age is charged with an offense that involves the use or possession of a
firearm, as defined in s. 790.001, other than a violation of subsection (3),
or is charged for any offense during the commission of which the minor
possessed a firearm, the minor shall be detained in secure detention,
unless the state attorney authorizes the release of the minor, and shall
be given a hearing within 24 hours after being taken into custody. At the
hearing, the court may order that the minor continue to be held in secure
detention in accordance with the applicable time periods specified in s.
39.044(5), if the court finds that the minor meets the criteria specified in
s. 39.044(2), or if the court finds that the minor is a clear and present
danger to himself or the community. An order placing a minor in secure

(1) It is unlawful for any person to own or to have in his or her care,
custody, possession, or control any firearm or electric weapon or device, or
to carry a concealed weapon, including a tear gas gun or chemical weapon
or device, if that person has been:
(a) Convicted of a felony or found to have committed a delinquent act
that would be a felony if committed by an adult in the courts of this state;
(b) Convicted of or found to have committed a crime against the
United States which is designated as a felony;
(c) Found to have committed a delinquent act in another state,
territory, or country that would be a felony if committed by an adult and
which was punishable by imprisonment for a term exceeding 1 year; or

E OF REPRESENTATIVES 71

detention because the minor is a clear and present danger to himself or
the community must be in writing and specify the need for detention and
the benefits derived by the minor or the community by placing the minor
in secure detention.
(9) Notwithstanding s. 39.043, if the minor is found to have committed
an offense that involves the use or possession of a firearm, as defined in
s. 790.001, other than a violation of subsection (3), or an offense during
the commission of which the minor possessed a firearm, and is not
committed to a residential commitment program of the Department of
Health and Rehabilitative Services, in addition to any other punishment
provided by law, the court shall order:
(a) For a first offense, that the minor serve a mandatory period of
detention of 5 days in a secure detention facility and perform not less
than 100 hours of community service.
(b) For a second or subsequent offense, that the minor serve a
mandatory period of detention of 10 days in a secure detention facility
and perform not less than 250 hours of community service.
The minor shall receive credit for time served before adjudication.
(10) If a minor is found to have committed an offense under
subsection (9), the court shall impose the following penalties in addition
to any penalty imposed under paragraph (9) (a) or paragraph (9)(b):
(a) For a first offense:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 1 year.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period for up to 1 year.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 1 year after the date on which he
would otherwise have become eligible.
(b) For a second or subsequent offense:
1. If the minor is eligible by reason of age for a driver license or driving
privilege, the court shall direct the Department of Highway Safety and
Motor Vehicles to revoke or to withhold issuance of the minor's driver
license or driving privilege for up to 2 years.
2. If the minor's driver license or driving privilege is under suspension
or revocation for any reason, the court shall direct the Department of
Highway Safety and Motor Vehicles to extend the period of suspension
or revocation by an additional period for up to 2 years.
3. If the minor is ineligible by reason of age for a driver license or
driving privilege, the court shall direct the Department of Highway
Safety and Motor Vehicles to withhold issuance of the minor's driver
license or driving privilege for up to 2 years after the date on which he
would otherwise have become eligible.
Section 6. Section 790.23, Florida Statutes, is amended to read:
(Substantial rewording of section. See s. 790.23, F.S., for present text.)

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(d) Found guilty of an offense that is a felony in another state,
territory, or country and which was punishable by imprisonment for a term
exceeding 1 year.
(2) This section shall not apply to a person convicted of a felony whose
civil rights and firearm authority have been restored, or to a person found
to have committed a delinquent act that would be a felony if committed
by an adult with respect to which the jurisdiction of the court pursuant to
chapter 39 has expired.
(3) Any person who violates this section commits a felony of the second
degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
Section 7. Subsection (5) of section 790.25, Florida Statutes, is
amended to read:
790.25 Lawful ownership, possession, and use of firearms and other
weapons.-
(5) POSSESSION IN PRIVATE CONVEYANCE.-Notwithstanding
subsection (2), it is lawful and is not a violation of s. 790.01 for a person
18 years of age or older to possess a concealed firearm or other weapon for
self-defense or other lawful purpose within the interior of a private
conveyance, without a license, if the firearm or other weapon is securely
encased or is otherwise not readily accessible for immediate use. Nothing
herein contained prohibits the carrying of a legal firearm other than a
handgun anywhere in, a private conveyance when such firearm is being
carried for a lawful use. Nothing herein contained shall be construed to
authorize the carrying of a concealed firearm or other weapon on the
person. This subsection shall be liberally construed in favor of the lawful
use, ownership, and possession of firearms and other weapons, including
lawful self-defense as provided in s. 776.012.
Section 8. The Department of Health and Rehabilitative Services shall
prepare public service announcements for dissemination to parents
throughout the state, of the provisions of this act.
Section 9. The Comptroller shall transfer the unencumbered cash
balance in the Election Campaign Financing Trust Fund as of December
31, 1993, to the General Revenue Fund to offset the operating costs of
juvenile justice detention facilities authorized by this act.
Section 10. (1) There is hereby appropriated a lump sum of
$2,197,810 from the General Revenue Fund and 94 additional full-time
positions are authorized for the Juvenile Justice Program in the
Department of Health and Rehabilitative Services. This shall be used for
additional staffing for secure detention and case management for
community service for delinquent youth.
(2) There is hereby appropriated a lump sum of $12,512,000 from the
General Revenue Fund to the Department of Health and Rehabilitative
Services for the construction and operation of additional juvenile
commitment beds.
Section 11. Except as otherwise expressly provided in this act, this act
shall take effect January 1, 1994.
And the title is amended as follows:
Strike everything before the enacting clause and insert: A bill to be
entitled An act relating to weapons and firearms; amending s. 39.045, F.S.;
authorizing a law enforcement agency to release the name and address of
a minor who has been adjudicated guilty of an offense involving possession
or use of a firearm; amending s. 790.17, F.S.; prohibiting certain transfer
to a minor of a weapon, or electric weapon or device; prohibiting sale or
transfer to a minor of a firearm and providing that a violation constitutes
a third-degree felony; amending s. 790.175, F.S.; redefining the term
"minor"; requiring that the purchaser of a firearm be informed that it is
unlawful to store or leave a firearm within access of a minor or to knowingly
sell or transfer a firearm to a minor or a person of unsound mind; amending
s. 790.18, F.S.; prohibiting an arms dealer from selling or transferring a
firearm or certain other weapons to a minor; increasing the penalty for a
violation from a misdemeanor to a felony; amending s. 790.22, F.S.;
prohibiting a minor from possessing a firearm; providing certain
exceptions; prohibiting adults responsible for a minor from knowingly
permitting the minor to unlawfully possess a firearm; providing penalties

violation by a minor; requiring that a minor charged with certain offenses
involving the use or possession of a firearm be detained in secure detention
unless the state attorney authorizes the minor's release; providing for a
hearing within a specified period; providing circumstances under which the
court may order that the minor continue to be held in secure detention;
requiring the court to order a minimum mandatory period of secure
detention in addition to other punishments provided by law if the minor
is found to have committed certain offenses involving the use or possession
of a firearm and is not committed to a residential commitment program of
the Department of Health and Rehabilitative Services; providing for
mandatory revocation or suspension of the driving privilege if a minor is
found to have committed certain offenses involving the use or possession
of a firearm; providing for enhanced penalties; providing for the seizure
and disposal of a firearm used or possessed unlawfully by a minor;
providing that such provisions are supplemental to certain other criminal
sanctions; providing for the secure detention of a minor charged with a
violation of certain provisions of ch. 790, F.S., pending a court hearing;
amending s. 790.23, F.S.; prohibiting felons, and juveniles found to have
committed a delinquent act that would be a felony if committed by an
adult, from using or possessing a firearm under certain conditions;
providing exceptions; providing penalties; amending s. 790.25, F.S.;
limiting authorization for possession in private conveyance to persons over
18; directing the Department of Health and Rehabilitative Services to
prepare and disseminate public service announcements; directing the
Comptroller to transfer funds from the Election Campaign Financing
Trust Fund to the General Revenue Fund to offset the operating costs of
facilities authorized by this act; providing appropriations; providing
effective dates.
WHEREAS, the love affair between juveniles and firearms has reached
an all-time high here in Florida, and
WHEREAS, the courts, the Legislature, and law enforcement cannot be
the sole solution to stem our rising juvenile crime statistics, and
WHEREAS, it is the will of the Legislature and all Floridians that
parental involvement, accountability, and responsibility become the key to
solving our existing broken juvenile criminal justice system, and
WHEREAS, it is the will of Floridians all across this great state of ours
that juveniles who violate laws pertaining to the illegal use of firearms be
dealt with in a swift and certain and severe manner, and
WHEREAS, it is time for the Governor, the President of the Senate, and
the Speaker of the House of Representatives, along with the Republican
leaders of the Senate and House of Representatives, to seek relief from our
counterparts in the United States Congress by cutting the federally
mandated ties that bind us from curing our juvenile crime problems here
at home, as said laws prevent us from using stricter, harsher, and more
certain penalties in detaining Florida's juveniles, NOW, THEREFORE,
On motion by Rep. Martinez, the House refused to concur in Senate
Amendment 1 and requested the Senate to recede therefrom. The action,
together with the bill and amendment thereto, was immediately certified
to the Senate.
Thereupon, in anticipation of the Senate action, the Speaker appointed
the following Members as managers on the part of the House to serve on
the Conference Committee on CS/CS/HB 91-C: Rep. Martinez, Chair;
Reps. Long, Logan, Ritchie, Mortham and Valdes.

Waiver of Rule 6 for Committee Meetings and Bills
On motion by Rep. Martinez, Chair, the rules were waived and the
Conference Committee on CS/CS/HB 91-C (weapons & firearms) was
given permission to meet today at 1:30 p.m., in 214C.

Recessed
On motion by Rep. Wallace, the House stood in informal recess at
1:19 p.m., to reconvene upon the call of the Speaker.

Reconvened

The House was called to order by the Speaker at 1:52 p.m. A quorum was
present.

for a violation by an adult; authorizing the court to require that a parent
participate in classes on parenting education; providing penalties for a

November 5, 1993

72

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Motions Relating to Committee References
On motion by Rep. Smith, Chair, agreed to by two-thirds vote, HB 125-C
was withdrawn from the Committee on Corrections and remains referred
to the Committee on Appropriations.
On point of order under Rule 8.8, by Rep. Gordon, Vice Chair, that it
does not affect appropriations, HB 125-C was removed from the
Committee on Appropriations and placed on the Calendar.

Bills and Joint Resolutions on Second Reading
HB 125-C-A bill to be entitled An act relating to correctional
facilities; setting forth legislative intent with respect to Specific
Appropriation 1934C contained in section 2B of chapter 91-193, Laws of
Florida; ratifying and affirming the selection process for obtaining
construction and operational services in the establishment of a privately
built and operated correctional facility; providing an effective date.
-was read the second time by title. On motion by Rep. Trammell, the
rules were waived by the required two-thirds vote and the bill was read the
third time by title. On passage, the vote was:
Yeas-113

The Chair
Abrams
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson
Nays-None

De Grandy
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Goode
Gordon
Graber
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King

Klein
Laurent
Lawson
Lippman
Littlefield
Long
Mackenzie
Mackey
Manrique
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts
Rudd

Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith
Stabins
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

Votes after roll call:
Yeas-Stafford
So the bill passed and was immediately certified to the Senate.

CS for SB 32-C-A bill to be entitled An act relating to federal defense
contracts; providing legislative findings; providing for the establishment of
a Defense Reinvestment Incentive Program within the Department of
Commerce; providing for the issuance of vouchers to reimburse federal
defense contractors or subcontractors for certain costs; providing
definitions; providing requirements for applications for vouchers;
requiring the Division of Economic Development of the Department of
Commerce to review applications and adopt related rules; providing for the
division to forward evaluations of applications to the Defense
Reinvestment Incentive Advisory Committee of the department, which is
established by the act; providing for membership, terms of appointment,
meetings, and reimbursement of members for travel and per diem;
providing for the expenditure of the funds in the Economic Development
Trust Fund; amending s. 213.053, F.S., relating to confidentiality and
information sharing; providing that the Department of Revenue may

furnish certain information to the Department of Commerce in its
administration of the program; providing a penalty for a breach of
confidentiality; amending s. 288.095, F.S., relating to the Economic
Development Trust Fund; providing for the deposit of moneys into that
trust fund; amending s. 443.171, F.S., relating to the powers and duties of
the Division of Unemployment Compensation of the Department of Labor
and Employment Security; providing for that division to release certain
information to the Department of Commerce in its administration of the
Defense Reinvestment Incentive Program; providing an effective date.
-was read the second time by title.

REPRESENTATIVE KELLY IN THE CHAIR
The Committee on Tourism & Economic Development offered the
following amendment:
Amendment 1-On page 3, line 18, strike everything after the enacting
clause and insert:
Section 1. The Legislature finds that over half of all high-technology
jobs created in Florida are created by defense contractors. These high-
wage, high-technology jobs are threatened by federal defense budget
downsizing and the national economic recession. It is the policy of this
state to encourage the growth and revitalization of Florida's high-wage,
high-technology employment and economic base by providing tax refunds
to qualified defense contractors to consolidate Department of Defense
contracts, obtain new Department of Defense production contracts, or to
convert defense production to non-defense production. The Legislature
declares that providing tax refunds and other tax incentives to these
employers is vital to the public purpose of employing Florida's citizens
and ensuring the economic vitality of this state. This section shall expire
and be void on June 30, 1998.
Section 2. Section 288.104, Florida Statutes, is created to read:
288.104 Qualified defense contractor tax refund program.-
(1) DEFINITIONS.-As used in this section:
(a) "Consolidation of a Department of Defense contract" means the
consolidation of one or more of a defense contractor's facilities under one
or more Department of Defense contracts either from outside this state
or from inside and outside this state, into one or more of the defense
contractor's facilities inside this state.
(b) "Average wage in the area" means the average of all wages and
salaries in the county or in the standard metropolitan area in which the
business unit is located.
(c) "Defense contractor" means any business entity that holds a valid
Department of Defense contract or any business entity that is a
subcontractor under a valid Department of Defense contract, including
all members of an affiliated group of corporations as defined in s.
220.03(1) (b).
(d) "Division" means the Division of Economic Development of the
Department of Commerce.
(e) "Department of Defense contract" means a competitively bid
Department of Defense contract or a competitively bid federal agency
contract issued on behalf of the Department of Defense for
manufacturing, assembling, fabricating, research, development, or design
with a duration of 2 or more years, but excluding any contract to provide
goods, improvements to real or tangible property, or services directly to
or for any particular military base or installation in this state.
(f) "New Department of Defense contract" means a Department of
Defense contract entered into after January 1, 1994.
(g) "Jobs" means full-time equivalent positions, as such terms are
defined by the Department of Labor and Employment Security for the
purpose of unemployment compensation tax, resulting directly from a
project in Florida. This number shall not include temporary construction
jobs involved with the construction of facilities for the project.
(h) "Non-defense production jobs" means employment exclusively for

private commercial activities which, directly or indirectly, are unrelated
to the Department of Defense.

November 5, 1993

73

74 JOURNAL OF THE HOUSE

(i) "Project" means any business undertaking in Florida under a new
Department of Defense contract, consolidation of a Department of
Defense contract, or conversion of defense production jobs over to non-
defense production jobs.
(j) "Qualified defense contractor" means a defense contractor that
has been approved by the secretary to be eligible for tax refunds pursuant
to this section.
(k) "Secretary" means the Secretary of the Florida Department of
Commerce.
(1) "Taxable year" means the same as in s. 220.03(1) (z).
(m) "Fiscal year" means the fiscal year of the state.
(n) "Business unit" means an employing unit, as defined in s. 443,036,
which is registered with the Department of Labor and Employment
Security for unemployment compensation purposes or means a
subcategory or division of an employing unit which is accepted by the
Department of Labor and Employment Security as a reporting unit.
(2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.-
(a) There shall be allowed, from the Economic Development Trust
Fund, a refund to a qualified defense contractor for the amount of eligible
taxes certified by the secretary which were paid by such qualified defense
contractor. The total amount of refunds for all fiscal years for each
qualified defense contractor shall be determined pursuant to subsection
(3). The annual amount of a refund to a qualified defense contractor shall
be determined pursuant to subsection (5).
(b) No qualified defense contractor may receive more than $5,000
times the number of jobs provided in the tax refund agreement pursuant
to subparagraph (4)(a)1. in any fiscal year, provided that no qualified
defense contractor may receive more than $2 million in tax refunds
pursuant to the provisions of this section in any fiscal year.
(c) No qualified defense contractor may receive more than $6 million
in tax refunds pursuant to this section in all fiscal years.
(d) Contingent upon an annual appropriation by the Legislature, the
secretary may approve not more than the lesser of $8 million in tax
refunds or the amount appropriated to the Economic Development Trust
Fund for tax refunds, for a fiscal year pursuant to subsection (5).
(e) For the first 6 months of each fiscal year, the secretary shall set
aside 30 percent of the amount appropriated for refunds pursuant to this
section by the Legislature to provide tax refunds only to qualified defense
contractors who employ 500 or fewer full-time employees in Florida. Any
unencumbered funds remaining undisbursed from this set-aside at the
end of the 6-month period may be used to provide tax refunds for any
qualified defense contractors pursuant to the provisions of this section.
(f) After entering into a tax refund agreement pursuant to subsection
(4), a qualified defense contractor may receive refunds from the Economic
Development Trust Fund for the following taxes paid by the qualified
defense contractor during the contractor's most recently completed
taxable year:
1. Taxes on sales, use, and other transactions paid pursuant to part
I of chapter 212.
2. Corporate income taxes paid pursuant to chapter 220.
3. Intangible personal property taxes paid pursuant to chapter 199.
4. Emergency excise taxes paid pursuant to chapter 221.
5. Excise taxes paid on documents pursuant to chapter 201.
6. Ad valorem taxes paid, as defined in s. 220.03(1) (a) on the effective
date of this act.
However, no qualified defense contractor may receive a tax refund
pursuant to this section for any amount of credit, refund, or exemption
granted such contractor for any of such taxes. In the event a refund for

such taxes is provided by the Department of Commerce, which are
subsequently adjusted by the application of any credit, refund, or
exemption granted to the qualified defense contractor other than that
provided in this section, the qualified defense contractor shall reimburse
the Economic Development Trust Fund for the amount of such credit,

]

10. The estimated amount of tax refunds to be claimed in each fiscal
year.
11. A brief statement concerning the defense contractor's need for tax
refunds, and the proposed uses of such refunds by the defense contractor.

E OF REPRESENTATIVES November 5, 1993

refund, or exemption. A qualified defense contractor must notify and
tender payment to the Department of Commerce within 20 days after
receiving a credit, refund or exemption, other than that provided in this
section.
(g) Any qualified defense contractor who fraudulently claims this
refund is liable for repayment of the refund to the Economic Development
Trust Fund plus a mandatory penalty of 200 percent of the tax refund
which shall be deposited into the General Revenue Fund. Any qualified
defense contractor who fraudulently claims this refund commits a felony
of the third degree, punishable as provided in s. 775.082, s. 775.083, or s.
775.084.
(3) APPLICATION PROCESS; REQUIREMENTS; AGENCY
DETERMINATION.-
(a) To apply for certification as a qualified defense contractor
pursuant to this section, a defense contractor shall file an application
with the division which satisfies the requirements of paragraphs (b) and
(d) or paragraphs (c) and (d). A defense contractor may not apply for
certification pursuant to this section after a proposal has been submitted
for a new Department of Defense contract, after the defense contractor
has made the decision to consolidate an existing Department of Defense
contract in this state for which such defense contractor is seeking
certification, or after the defense contractor has made the decision to
convert defense production jobs to non-defense production jobs for which
such defense contractor is seeking certification.
(b) Applications for certification based on the consolidation of a
Department of Defense contract or a new Department of Defense contract
shall be submitted to the division as prescribed by the Department of
Commerce which includes, but is not limited to, the following information:
1. The applicant's federal employer identification number and the
applicant's Florida sales tax registration number.
2. The permanent location of the manufacturing, assembling,
fabricating, research, development, or design facility in Florida at which
the project is or is to be located.
3. The Department of Defense contract numbers of the contract to be
consolidated, the new Department of Defense contract number, or the
"RFP" number of a proposed Department of Defense contract.
4. The date the contract was executed or is expected to be executed,
and the date the contract is due to expire or is expected to expire.
5. The commencement date for project operations under the contract
in Florida.
6. The number of full-time equivalent jobs in Florida that are or will
be dedicated to the project during the year and the average wage of such
jobs.
7. The total number of full-time equivalent employees employed by
the applicant in Florida.
8. The percentage of the defense contractor's gross receipts derived
from Department of Defense contracts during the 5 taxable years
immediately preceding the date the application is submitted.
9. The amount of:
a. Taxes on sales, use, and other transactions paid pursuant to part
I of chapter 212;
b. Corporate income taxes paid pursuant to chapter 220;
c. Intangible personal property taxes paid pursuant to chapter 199;
d. Emergency excise taxes paid pursuant to chapter 221;
e. Excise taxes paid on documents pursuant to chapter 201; and
f. Ad valorem taxes paid
during the 5 fiscal years immediately preceding the date of the
application, and the projected amounts of such taxes to be due in the 3
fiscal years immediately following the date of the application.

JOURNAL OF THE HOUSE]

12. A resolution adopted by the local government jurisdictions in
which the project will be located, which recommends the defense
contractor be approved as a qualified defense contractor, and which
indicates that the local governments will provide property tax abatement
pursuant to s. 196.1995 for the maximum taxable value authorized to be
exempted pursuant to said section, or which indicates that the local
governments will appropriate and pay to the Economic Development
Trust Fund an amount equal to the ad valorem tax abatement for the
maximum taxable value authorized to be exempted for such contractor
pursuant to s. 196.1995.
13. Any additional information requested by the division.
(c) Applications for certification based on the conversion of defense
production jobs to non-defense production jobs shall be submitted to the
division as prescribed by the Department of Commerce which includes,
but is not limited to, the following information:
1. The applicant's federal employer identification number and the
applicant's Florida sales tax registration number.
2. The permanent location of the manufacturing, assembling,
fabricating, research, development, or design facility in Florida at which
the project is or is to be located.
3. The Department of Defense contract numbers of the contract under
which the defense production jobs will be converted to non-defense
production jobs.
4. The date the contract was executed, and the date the contract is
due to expire or is expected to expire.
5. The commencement date for the non-defense production
operations in Florida.
6. The number of full-time equivalent jobs in Florida that are or will
be dedicated to the non-defense production project during the year and
the average wage of such jobs.
7. The total number of full-time equivalent employees employed by
the applicant in Florida.
8. The percentage of the defense contractor's gross receipts derived
from Department of Defense contracts during the 5 taxable years
immediately preceding the date the application is submitted.
9. The amount of:
a. Taxes on sales, use, and other transactions paid pursuant to part
I of chapter 212;
b. Corporate income taxes paid pursuant to chapter 220;
c. Intangible personal property taxes paid pursuant to chapter 199;
d. Emergency excise taxes paid pursuant to chapter 221;
e. Excise taxes paid on documents pursuant to chapter 201; and
f. Ad valorem taxes paid
during the 5 fiscal years immediately preceding the date of the
application, and the projected amounts of such taxes to be due in the 3
fiscal years immediately following the date of the application.
10. The estimated amount of tax refunds to be claimed in each fiscal
year.
11. A brief statement concerning the defense contractor's need for tax
refunds, and the proposed uses of such refunds by the defense contractor.
12. A resolution adopted by the local government jurisdictions in
which the project will be located, which recommends the defense
contractor be approved as a qualified defense contractor, and which
indicates that the local governments will provide property tax abatement
pursuant to s. 196.1995 for the maximum taxable value authorized to be
exempted pursuant to said section, or which indicates that the local
governments will appropriate and pay to the Economic Development
Trust Fund an amount equal to the ad valorem tax abatement for the

maximum taxable value authorized to be exempted for such contractor
pursuant to s. 196.1995.

November 5, 1993

to Florida resulting from the project.
(f) The division shall forward its written findings and evaluation on
each application meeting the requirements of paragraphs (b) and (d) or
paragraphs (c) and (d) to the secretary within 60 calendar days of receipt
of a complete application. The division shall notify each defense

E OF REPRESENTATIVES 75

13. Any additional information requested by the division.
(d) To qualify for review by the division, the application of a defense
contractor must, at a minimum, establish the following to the satisfaction
of the division:
1. The jobs proposed to be provided under the application, pursuant
to subparagraph (b)6. or (c)6., must pay an estimated annual average
wage equaling at least 115 percent of the average wage in the area where
the project is to be located.
2. The consolidation of a Department of Defense contract must result
in a net increase of at least 25 percent in the number of jobs at the defense
contractor's facilities in Florida.
3. The conversion of defense production jobs to non-defense
production jobs must result in net increases in private commercial
employment at the defense contractor's facilities in Florida.
4. The Department of Defense contract cannot allow the business to
include the costs of relocation or retooling in its base as allowable costs
under a cost plus, or similar, contract.
5. The defense contractor has been, or will be, granted an economic
development ad valorem tax exemption for the project pursuant to s.
196.1995 for the maximum taxable value authorized to be exempted
pursuant to said section, or the local government jurisdictions have
passed a resolution indicating that such local governments shall
appropriate and pay to the Economic Development Trust Fund an
amount equal to the ad valorem tax abatement for the maximum taxable
value authorized to be exempted for such contractor pursuant to s.
196.1995.
6. The defense contractor or a business unit of the contractor must
have derived not less than 70 percent of its gross receipts in this state
from Department of Defense contracts over the defense contractor's last
fiscal year, and must have derived not less than 80 percent of its gross
receipts in this state from Department of Defense contracts over the 5
years preceding the date an application is submitted pursuant to this
section.
(e) Each application meeting the requirements of paragraphs (b) and
(d) or paragraphs (c) and (d) shall be submitted to the division for a
determination of eligibility. The division shall review, evaluate, and score
each application based on, but not limited to, the following criteria:
1. Expected contributions to the state strategic economic
development plan adopted by Enterprise Florida, Inc., taking into
account the extent to which the project contributes to the state's high-
technology base, and the long-term impact of the project and the
applicant on the state's economy.
2. The economic benefit of the jobs created or retained by the project
in Florida, taking into account the cost and average wage of each job
created or retained, and the potential risk to existing Florida jobs.
3. The amount of capital investment to be made by the applicant in
Florida.
4. The local commitment and support for the project and defense
contractor.
5. The impact of the project on the local community, taking into
account the unemployment rate for the county where the project will be
located.
6. The dependence of the local community on the defense industry.
7. The impact of any tax refunds granted pursuant to this section on
the viability of the project and the probability that the project will occur
in Florida if such tax refunds are granted to the applicant, taking into
account the expected long-term commitment of the applicant to economic
growth and employment in Florida.
8. The length of the project, or the expected long-term commitment

76

contractor when its application is complete, and when the 60-day period
begins. In its written report to the secretary, the division shall specifically
address each of the factors specified in paragraph (e), and shall make a
specific assessment with respect to the minimum requirements
established in paragraph (d). The division shall include in its report
projections of the tax refund claims that will be sought by the defense
contractor in each fiscal year based on the information submitted in the
application.
(g) Within 30 days of receipt of the division's findings and evaluation,
the secretary shall enter a final order which shall either approve or
disapprove a defense contractor's application. The decision shall be in
writing, and shall provide the justifications for either approval or
disapproval. If appropriate, the secretary shall enter into a written
agreement with the qualified defense contractor pursuant to subsection
(4).
(h) The secretary shall not enter any final order which certifies any
defense contractor as a qualified defense contractor when the aggregate
amount of tax refunds for all qualified defense contractors projected by
the division in any fiscal year exceeds $8 million. A final order which
approves a defense contractor's application shall specify the maximum
amount of a tax refund that is to be available to the contractor in each
fiscal year and the total amount of tax refunds for all fiscal years.
(i) Nothing in this section shall create a presumption that an
applicant should receive any tax refunds under this section.
(4) QUALIFIED DEFENSE CONTRACTOR TAX REFUND
AGREEMENT.-
(a) A qualified defense contractor shall enter into a written
agreement with the department containing, but not limited to, the
following:
1. The total number of full-time equivalent jobs in Florida that are
or will be dedicated to the qualified defense contractor's project, the
average wage of such jobs, the definitions that will apply for measuring
the achievement of these terms during the pendency of the agreement,
and a time schedule or plan for when such jobs will be in place and active
in Florida. This information shall be the same as the information
contained in the application submitted by the contractor pursuant to
subsection (3).
2. The maximum amount of a refund that the qualified defense
contractor is eligible to receive in each fiscal year.
3. An agreement with the department allowing the department to
review and verify the financial and personnel records of the qualified
defense contractor to ascertain whether the qualified defense contractor
is complying with the requirements of this section.

November 5, 1993

(5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED
DEFENSE CONTRACTOR.-
(a) Qualified defense contractors who have entered into a written
agreement with the department pursuant to subsection (4) and who have
entered into a valid new Department of Defense contract, commenced the
consolidation of a Department of Defense contract, or commenced the
conversion of defense production jobs to non-defense productions jobs
may apply once each fiscal year to the Department of Commerce for tax
refunds. The application shall be made on or after the date contained in
the agreement entered into pursuant to subsection (4).
(b) The claim for refund by the qualified defense contractor shall
include a copy of all receipts pertaining to the payment of taxes for which
a refund is sought, and data related to achieving each performance item
contained in the tax refund agreement pursuant to subsection (4). The
amount requested as a tax refund shall not exceed the amount for the
fiscal year in the written agreement entered pursuant to subsection (4).
(c) The secretary, with such assistance as may be required from the
division, the Department of Revenue, or the Department of Labor and
Employment Security, shall make a determination as to the amount of
the tax refund that shall be authorized for the qualified defense
contractor for the fiscal year in a written final order within 30 days of the
date the claim for the annual tax refund is received by the Department
of Commerce.
(d) The total amount of tax refunds approved by the secretary under
this section in any fiscal year shall not exceed the amount appropriated
to the Economic Development Trust Fund for such purposes for the fiscal
year. In the event the Legislature does not appropriate an amount
sufficient to satisfy projections by the division for tax refunds in a fiscal
year, the secretary shall, not later than July 15 of such year, determine
the proportion of each refund claim which shall be paid by dividing the
amount appropriated for tax refunds for the fiscal year by the projected
total amount of refund claims for the fiscal year. The amount of each
claim for a tax refund shall be multiplied by the resulting quotient. If,
after the payment of all such refund claims, funds remain in the
Economic Development Trust Fund for tax refunds, the secretary shall
recalculate the proportion for each refund claim and adjust the amount
of each claim accordingly.
(e) Upon approval of the tax refund pursuant to paragraphs (c) and
(d), the Comptroller shall issue a warrant for the amount included in the
final order. In the event of any appeal of the final order, the Comptroller
shall not issue a warrant for a refund to the qualified defense contractor
until the conclusion of all appeals of the final order.
(6) ADMINISTRATION.-

4. The date on which, each fiscal year, the qualified defense (a) The department shall adopt rules pursuant to chapter 120 for the
contractor may file an annual claim pursuant to subsection (5). administration of this section.

5. If required, that local governments shall annually appropriate and
pay to the Economic Development Trust Fund an amount equal to the
ad valorem tax abatement for the maximum taxable value authorized to
be exempted for such qualified defense contractor pursuant to s. 196.1995.
(b) Compliance with the terms and conditions of the agreement shall
be a condition precedent for receipt of tax refunds each year. The failure
to comply with the terms and conditions of the agreement shall result in
the loss of eligibility for receipt of all tax refunds previously authorized
pursuant to this section, and the revocation of the certification as a
qualified defense contractor by the secretary.
(c) The agreement shall be signed by the secretary and the authorized
officer of the qualified defense contractor within 30 days of the entry of
a final order certifying the qualified defense contractor pursuant to
subsection (3).
(d) The agreement must contain the following legend, clearly printed
on its face in bold type of not less than 10 points:
"This agreement is neither a general obligation of the State of
Florida, nor is it backed by the full faith and credit of the State of
Florida. Payment of tax refunds are conditioned on and subject to
specific annual appropriations by the Florida Legislature of funds
sufficient to pay amounts authorized in s. 288.104, Florida Statutes."

(b) The department is authorized to verify information provided in
any claim submitted for tax credits under this section with regard to
employment and wage levels or the payment of the taxes with the
appropriate agency or authority including the Department of Revenue,
the Department of Labor and Employment Security, or any local
government or authority.
(c) To facilitate the process of monitoring and auditing applications
made under this program, the department may provide a list of qualified
defense contractors to the Department of Revenue, the Department of
Labor and Employment Security, or to any local government or authority.
The department may request the assistance of said entities with respect
to monitoring the payment of the taxes listed in subsection (2).
(d) By September 30 of each year, the department shall submit a
complete and detailed report to the Defense Transition and Conversion
Commission, created under Executive Order 93-118, of all tax refunds
paid under this section, including analyses of benefits and costs, types of
projects supported, employment and investment created, geographic
distribution of tax refunds granted, and minority business participation.
The report must indicate whether the moneys appropriated by the
Legislature to the qualified defense contractor tax refund program were
expended in a prudent, fiducially sound manner. By December 1 of each
year, the Defense Transition and Conversion Commission shall review

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSI

and comment on the report, and shall submit the report together with the
commission's comments to the Governor, the President of the Senate, and
the Speaker of the House of Representatives.
(7) EXPIRATION.-This section shall expire and be void on June 30,
1998.
Section 3. Paragraph (c) is added to subsection (15) and paragraph (c)
is added to subsection (16) of section 196.012, Florida Statutes, to read:
196.012 Definitions.-For the purpose of this chapter, the following
terms are defined as follows, except where the context clearly indicates
otherwise:
(15) "New business" means:
(c) Any business certified as a qualified defense contractor pursuant
to s. 288.104, that first begins operation on a site clearly separate from
any other commercial or industrial operation owned by the same business.
(16) "Expansion of an existing business" means:
(c) Any business certified as a qualified defense contractor pursuant
to s. 288.104, that increases operations on a site colocated with a
commercial or industrial operation owned by the same business.
Section 4. Section 196.1995, Florida Statutes, is amended to read:
196.1995 Economic development ad valorem tax exemption.-
(1) The board of county commissioners of any county or the governing
authority of any municipality shall call a referendum within its total
jurisdiction to determine whether its respective jurisdiction may grant
economic development ad valorem tax exemptions under s. 3, Art. VII of
the State Constitution if:
(a) The board of county commissioners of the county or the governing
authority of the municipality votes to hold such referendum; or
(b) The board of county commissioners of the county or the governing
authority of the municipality receives a petition signed by 10 percent of the
registered electors of its respective jurisdiction, which petition calls for the
holding of such referendum.
(2) The ballot question in such referendum shall be in substantially the
following form:
Shall the board of county commissioners of this county (or the governing
authority of this municipality, or both) be authorized to grant, pursuant
to s. 3, Art. VII of the State Constitution, property tax exemptions to new
businesses and expansions of existing businesses?
Yes-For authority to grant exemptions.
No-Against authority to grant exemptions.
(3) The board of county commissioners or the governing authority of
the municipality which calls a referendum within its total jurisdiction to
determine whether its respective jurisdiction may grant economic
development ad valorem tax exemptions may vote to limit the effect of the
referendum to authority to grant economic development tax exemptions
for new businesses and expansions of existing businesses located in an
enterprise zone. In the event that an area authorized to be an enterprise
zone pursuant to s. 290.0055 has not yet been approved pursuant to s.
290.0065, the board of county commissioners or the governing authority of
the municipality may call such referendum prior to such approval;
however, the authority to grant economic development ad valorem tax
exemptions will not apply until such area is approved pursuant to s.
290.0065. The ballot question in such referendum shall be in substantially
the following form and shall be used in lieu of the ballot question
prescribed in subsection (2):
Shall the board of county commissioners of this county (or the governing
authority of this municipality, or both) be authorized to grant, pursuant
to s. 3, Art. VII of the State Constitution, property tax exemptions for new
businesses and expansions of existing businesses which are located in an
enterprise zone?

Yes-For authority to grant exemptions.
No-Against authority to grant exemptions.

November 5, 1993

(5)(4) A referendum p
in anyQ 1 month period.

lurcuant to this oeetion may be called only once

(6)k4 Upon a majority vote in favor of such authority, the board of
county commissioners or the governing authority of the municipality, at its
discretion, by ordinance may exempt from ad valorem taxation up to 100
percent of the assessed value of all improvements to real property made by
or for the use of a new business and of all tangible personal property of such
new business, as defined in s. 196.012(15) (a) or (b), or up to 100 percent
of the assessed value of all added improvements to real property made to
facilitate the expansion of an existing business and of the net increase in
all tangible personal property acquired to facilitate such expansion of an
existing business, as defined in s. 196.012(16) (a) or (b), provided that the
improvements to real property are made or the tangible personal property
is added or increased on or after the day the ordinance is adopted, or 100
percent of the assessed value of the real and tangible property of a new
business as defined in s. 196.012(15)(c), or 100 percent of the assessed
value of all improvements to real property and all tangible personal
property made to facilitate the expansion of an existing business as
defined in s. 196.012(16) (c). However, if the authority to grant exemptions
is approved in a referendum in which the ballot question contained in
subsection (3) or subsection (4) appears on the ballot, the authority of the
board of county commissioners or the governing authority of the
municipality to grant exemptions is limited solely to new businesses and
expansions of existing businesses which are located in an enterprise zone
or which are certified as qualified defense contractors pursuant to s.
288.104. Property acquired to replace existing property shall not be
considered to facilitate a business expansion. The exemption applies only
to taxes levied by the respective unit of government granting the
exemption. The exemption does not apply, however, to taxes levied for the
payment of bonds or to taxes authorized by a vote of the electors pursuant
to s. 9(b) or s. 12, Art. VII of the State Constitution. Any such exemption
shall remain in effect for up to 10 years with respect to any particular
facility, regardless of any change in the authority of the county or
municipality to grant such exemptions. The exemption shall not be
prolonged or extended by granting exemptions from additional taxes or by
virtue of any reorganization or sale of the business receiving the exemption.
(7)k}4 The authority to grant exemptions under this section will expire
10 years after the date such authority was approved in an election, but such
authority may be renewed for another 10-year period in a referendum
called and held pursuant to this section.
(8)(74 Any person, firm, or corporation which desires an economic
development ad valorem tax exemption shall, in the year the exemption is
desired to take effect, file a written application on a form prescribed by the
department with the board of county commissioners or the governing
authority of the municipality, or both. The application shall request the
adoption of an ordinance granting the applicant an exemption pursuant to
this section and shall include the following information:
(a) The name and location of the new business or the expansion of an
existing business;

SOF REPRESENTATIVES 77

(4) The board of county commissioners or the governing authority of
the municipality which calls a referendum within its total jurisdiction to
determine whether its respective jurisdiction may grant economic
development ad valorem tax exemptions may vote to limit the effect of
the referendum to authority to grant economic development tax
exemptions for new businesses or expansions of existing businesses that
are qualified defense contractors pursuant to s. 288.104. The ballot
question in such referendum shall be in substantially the following form
and shall be used in lieu of the ballot question prescribed in subsection
(2):
Shall the board of county commissioners of this county (or the governing
authority of this municipality, or both) be authorized to grant, pursuant
to s. 3, Art. VII of the State Constitution, property tax exemptions for
new businesses and expansions of existing businesses which are certified
as qualified defense contractors by the Secretary of Commerce pursuant
to s. 288.104?
Yes-For authority to grant exemptions.
No-Against authority to grant exemptions.

78 JOURNAL OF THE HOUSE

(b) A description of the improvements to real property for which an
exemption is requested and the date of commencement of construction of
such improvements;
(c) A description of the tangible personal property for which an
exemption is requested and the dates when such property was or is to be
purchased;
(d) Proof, to the satisfaction of the board of county commissioners or
the governing authority of the municipality, that the applicant is a new
business or an expansion of an existing business, as defined in s.
196.012(15) or (16); and
(e) Other information deemed necessary by the department.
(9)W{ Before it takes action on the application, the board of county
commissioners or the governing authority of the municipality shall deliver
a copy of the application to the property appraiser of the county. After
careful consideration, the property appraiser shall report the following
information to the board of county commissioners or the governing
authority of the municipality:
(a) The total revenue available to the county or municipality for the
current fiscal year from ad valorem tax sources, or an estimate of such
revenue if the actual total revenue available cannot be determined;
(b) Any revenue lost to the county or municipality for the current fiscal
year by virtue of exemptions previously granted under this section, or an
estimate of such revenue if the actual revenue lost cannot be determined;
(c) An estimate of the revenue which would be lost to the county or
municipality during the current fiscal year if the exemption applied for
were granted had the property for which the exemption is requested
otherwise been subject to taxation; and
(d) A determination as to whether the property for which an exemption
is requested is to be incorporated into a new business or the expansion of
an existing business, as defined in s. 196.012(15) or (16), or into neither,
which determination the property appraiser shall also affix to the face of
the application. Upon the request of the property appraiser, the
department shall provide to him such information as it may have available
to assist in making such determination.
(10)( An ordinance granting an exemption under this section shall be
adopted in the same manner as any other ordinance of the county or
municipality and shall include the following:
(a) The name and address of the new business or expansion of an
existing business to which the exemption is granted;
(b) The total amount of revenue available to the county or municipality
from ad valorem tax sources for the current fiscal year, the total amount
of revenue lost to the county or municipality for the current fiscal year by
virtue of economic development ad valorem tax exemptions currently in
effect, and the estimated revenue loss to the county or municipality for the
current fiscal year attributable to the exemption of the business named in
the ordinance;
(c) The period of time for which the exemption will remain in effect
and the expiration date of the exemption; and
(d) A finding that the business named in the ordinance meets the
requirements of s. 196.012(15) or (16).
Section 5. Paragraph (1) is added to subsection (7) of section 213.053,
Florida Statutes, to read:
213.053 Confidentiality and information sharing.--
(7) Notwithstanding any other provision of this section, the
department may provide:
(1) Payment information relative to chapters 199, 201, 212, 220, and
221 to the Department of Commerce in its administration of the qualified
defense contractor tax refund program authorized by s. 288.104.
Disclosure of information under this subsection shall be pursuant to a
written agreement between the executive director and the agency. Such

agencies, governmental or nongovernmental, shall be bound by the same
requirements of confidentiality as the Department of Revenue. This
exemption is subject to the Open Government Sunset Review Act in
accordance with s. 119.14. Breach of confidentiality is a misdemeanor of
the first degree, punishable as provided by s. 775.082 or s. 775.083.

I]

Department of Commerce for fiscal year 1993-1994. From the Economic
Development Trust Fund, the following amounts are appropriated to the
Department of Commerce for fiscal year 1993-1994:
(1) The sum of $1,907,550 for the purpose of carrying out the
provisions of this act.

--

E OF REPRESENTATIVES November 5, 1993

Section 6. Section 288.095, Florida Statutes, is amended to read:
288.095 Economic Development Trust Fund.-
(1) The Economic Development Trust Fund is created within the
Division of Economic Development of the Department of Commerce.
Moneys deposited into the fund must be used only to support the
authorized activities and operations of the division.
(2) Moneys appropriated for or reimbursed to the qualified defense
contractor tax refund program must be deposited in the Economic
Development Trust Fund. Funds appropriated for the qualified defense
contractor trust refund program shall be subject to the provisions of s.
216.301(1) (a). Upon the receipt in the trust fund of funds appropriated
by a local government which are eqaal to the ad valorem tax abatement
for the maximum taxable value authorized to be exempted for a qualified
defense contractor, a warrant shall be issued to the appropriate qualified
defense contractor for such amount from the trust fund. This subsection
expires December 31, 1998.
Section 7. Subsection (7) of section 443.171, Florida Statutes, is
amended to read:
443.171 Division and commission; powers and duties; rules; advisory
council; records and reports.-
(7) RECORDS AND REPORTS.-Each employing unit shall keep
true and accurate work records, containing such information as the division
may prescribe. Such records shall be open to inspection and be subject to
being copied by the division at any reasonable time and as often as may
be necessary. The division or an appeals referee may require from any
employing unit any sworn or unsworn reports, with respect to persons
employed by it, deemed necessary for the effective administration of this
chapter. Information revealing the employing unit's or individual's
identity thus obtained from the employing unit or from any individual
pursuant to the administration of this chapter, shall, except to the extent
necessary for the proper presentation of a claim or upon written
authorization of the claimant who has a workers' compensation claim
pending, be held confidential and exempt from the provisions of s.
119.07(1). Such information shall be available only to public employees in
the performance of their public duties, including employees of the
Department of Education in obtaining information for the Florida
Education and Training Placement Information Program and the
Department of Commerce in its administration of the qualified defense
contractor tax refund program authorized by s. 288.104. This exemption
is subject to the Open Government Sunset Review Act in accordance with
s. 119.14. Any claimant (or his legal representative) at a hearing before an
appeals referee or the commission shall be supplied with information from
such records to the extent necessary for the proper presentation of his
claim. Any employee or member of the commission or any employee of the
division, or any other person receiving confidential information, who
violates any provision of this subsection commits a misdemeanor of the
second degree, punishable as provided in s. 775.082 or s. 775.083. However,
the division may furnish to any employer copies of any report previously
submitted by such employer, upon the request of such employer, and the
division is authorized to charge therefore such reasonable fee as the division
may by rule prescribe not to exceed the actual reasonable cost of the
preparation of such copies. Fees received by the division for copies as
herein provided shall be deposited to the credit of the Employment
Security Administration Trust Fund.
Section 8. In the event that a court of competent jurisdiction
determines any of the provisions of this act to be unconstitutional, it is
the intent of the Legislature that the provisions contained in this act shall
be null and void. To this end, the Legislature declares that it would not
have enacted any of the provisions of this act individually and, to that
end, expressly finds them not to be severable.
Section 9. The sum of $2,000,000 is appropriated from the General
Revenue Fund to the Economic Development Trust Fund of the

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(2) The sum of $92,450, and two full-time positions and one OPS
position are authorized, to administer the provisions of this act.
Section 10. This act shall take effect upon becoming a law.
and the title is amended as follows: On page 1, line 1, strike the entire
title and insert:
A bill to be entitled An act relating to federal defense contractors;
providing legislative findings; creating s. 288.104, F.S.; establishing a
qualified defense contractor tax refund program; providing definitions;
authorizing refunds from the Economic Development Trust Fund of
specified taxes paid by a qualified defense contractor engaged in a new
Department of Defense contract, consolidation of a Department of Defense
contract, or conversion of defense production jobs to non-defense
production jobs; providing limitations; providing penalties for fraudulent
claims; providing application procedures and requirements; providing for
review and evaluation by the Division of Economic Development;
providing for certification by the Secretary of Commerce; requiring such
contractors to enter into a written agreement with the Department of
Commerce; requiring annual application for tax refunds; providing for
administration by the department; requiring annual reports to the Defense
Transition and Conversion Commission and the Governor and Legislature;
providing for expiration; amending s. 196.012, F.S.; including businesses
certified as qualified defense contractors within the definition of "new
business" and "expansion of an existing business"; amending s. 196.1995,
F.S.; authorizing local governments to grant economic development ad
valorem tax exemption to such businesses; providing procedures and
requirements; amending s. 213.053, F.S.; authorizing the Department of
Revenue to furnish certain information to the Department of Commerce
in its administration of the program; providing a penalty for breach of
confidentiality; amending s. 288.095, F.S., relating to the Economic
Development Trust Fund; providing for the deposit of moneys into that
trust fund; amending s. 443.171, F.S.; authorizing the Division of
Unemployment Compensation to release certain information to the
Department of Commerce in its administration of the program; providing
a penalty for breach of confidentiality; providing nonseverability;
providing an appropriation and authorizing positions; providing an
effective date.
Rep. Reddick moved the adoption of the amendment.
The Committee on Finance & Taxation offered the following substitute
amendment:
Substitute Amendment 1-On page 3, line 18, strike everything after
the enacting clause and insert:
Section 1. The Legislature finds that over half of all high-technology
jobs created in Florida are created by defense contractors. These high-
wage, high-technology jobs are threatened by federal defense budget
downsizing and the national economic recession. It is the policy of this
state to encourage the growth and revitalization of Florida's high-wage,
high-technology employment and economic base by providing tax refunds
to qualified defense contractors to consolidate Department of Defense
contracts, obtain new Department of Defense production contracts, or to
convert defense production to non-defense production. The Legislature
declares that providing tax refunds and other tax incentives to these
employers is vital to the public purpose of employing Florida's citizens
and ensuring the economic vitality of this state. This section shall expire
and be void on June 30, 1998.
Section 2. Section 288.104, Florida Statutes, is created to read:
288.104 Qualified defense contractor tax refund program.-
(1) DEFINITIONS.-As used in this section:
(a) "Consolidation of a Department of Defense contract" means the
consolidation of one or more of a defense contractor's facilities under one
or more Department of Defense contracts either from outside this state
or from inside and outside this state, into one or more of the defense
contractor's facilities inside this state.

(b) "Average wage in the area" means the average of all wages and
salaries in the county or in the standard metropolitan area in which the
business unit is located.

November 5, 1993

to subparagraph (4)(a)1. in any fiscal year, provided that no qualified
defense contractor may receive more than $2.5 million in tax refunds
pursuant to the provisions of this section in any fiscal year.
(c) No qualified defense contractor may receive more than $7.5
million in tax refunds pursuant to this section in all fiscal years.

E OF REPRESENTATIVES 79

(c) "Defense contractor" means any business entity that holds a valid
Department of Defense contract or any business entity that is a
subcontractor under a valid Department of Defense contract, including
all members of an affiliated group of corporations as defined in s.
220.03(1) (b).
(d) "Division" means the Division of Economic Development of the
Department of Commerce.
(e) "Department of Defense contract" means a competitively bid
Department of Defense contract or a competitively bid federal agency
contract issued on behalf of the Department of Defense for
manufacturing, assembling, fabricating, research, development, or design
with a duration of 2 or more years, but excluding any contract to provide
goods, improvements to real or tangible property, or services directly to
or for any particular military base or installation in this state.
(f) "New Department of Defense contract" means a Department of
Defense contract entered into after January 1, 1994.
(g) "Jobs" means full-time equivalent positions, as such terms are
defined by the Department of Labor and Employment Security for the
purpose of unemployment compensation tax, resulting directly from a
project in Florida. This number shall not include temporary construction
jobs involved with the construction of facilities for the project.
(h) "Non-defense production jobs" means employment exclusively for
private commercial activities which, directly or indirectly, are unrelated
to the Department of Defense.
(i) "Project" means any business undertaking in Florida under a new
Department of Defense contract, consolidation of a Department of
Defense contract, or conversion of defense production jobs over to non-
defense production jobs.
(j) "Qualified defense contractor" means a defense contractor that
has been approved by the secretary to be eligible for tax refunds pursuant
to this section.
"(k) "Secretary" means the Secretary of the Florida Department of
Commerce.
(1) "Taxable year" means the same as in s. 220.03(1)(z).
(m) "Fiscal year" means the fiscal year of the state.
(n) "Business unit" means an employing unit, as defined in s. 443.036,
which is registered with the Department of Labor and Employment
Security for unemployment compensation purposes or means a
subcategory or division of an employing unit which is accepted by the
Department of Labor and Employment Security as a reporting unit.
(o) "Local financial support" means funding from local sources, public
or private, which is paid to the Economic Development Trust Fund and
which is equal to 20 percent of the annual tax refund for a qualified
defense contractor. A qualified defense contractor may not provide,
directly or indirectly, more than five percent of such funding in any fiscal
year. The sources of such funding may not include, directly or indirectly,
state funds appropriated from the General Revenue Fund or any state
trust fund, excluding tax revenues shared with local governments
pursuant to law.
(2) GRANTING OF A TAX REFUND; ELIGIBLE AMOUNTS.-
(a) There shall be allowed, from the Economic Development Trust
Fund, a refund to a qualified defense contractor for the amount of eligible
taxes certified by the secretary which were paid by such qualified defense
contractor. The total amount of refunds for all fiscal years for each
qualified defense contractor shall be determined pursuant to subsection
(3). The annual amount of a refund to a qualified defense contractor shall
be determined pursuant to subsection (5).
(b) No qualified defense contractor may receive more than $5,000
times the number of jobs provided in the tax refund agreement pursuant

80

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(d) Contingent upon an annual appropriation by the Legislature, the
secretary may approve not more than the lesser of $10 million in tax
refunds or the amount appropriated to the Economic Development Trust
Fund for tax refunds, for a fiscal year pursuant to subsection (5).
(e) For the first 6 months of each fiscal year, the secretary shall set
aside 30 percent of the amount appropriated for refunds pursuant to this
section by the Legislature to provide tax refunds only to qualified defense
contractors who employ 500 or fewer full-time employees in Florida. Any
unencumbered funds remaining undisbursed from this set-aside at the
end of the 6-month period may be used to provide tax refunds for any
qualified defense contractors pursuant to the provisions of this section.
(f) After entering into a tax refund agreement pursuant to subsection
(4), a qualified defense contractor may receive refunds from the Economic
Development Trust Fund for the following taxes paid by the qualified
defense contractor beginning with the contractor's first taxable year
which begins after entering into the agreement:
1. Taxes on sales, use, and other transactions paid pursuant to part
I of chapter 212.
2. Corporate income taxes paid pursuant to chapter 220.
3. Intangible personal property taxes paid pursuant to chapter 199.
4. Emergency excise taxes paid pursuant to chapter 221.
5. Excise taxes paid on documents pursuant to chapter 201.
6. Ad valorem taxes paid, as defined in s. 220.03(1) (a) on the effective
date of this act.
However, no qualified defense contractor may receive a tax refund
pursuant to this section for any amount of credit, refund, or exemption
granted such contractor for any of such taxes. In the event a refund for
such taxes is provided by the Department of Commerce, which are
subsequently adjusted by the application of any credit, refund, or
exemption granted to the qualified defense contractor other than that
provided in this section, the qualified defense contractor shall reimburse
the Economic Development Trust Fund for the amount of such credit,
refund, or exemption. A qualified defense contractor must notify and
tender payment to the Department of Commerce within 20 days after
receiving a credit, refund or exemption, other than that provided in this
section.
(g) Any qualified defense contractor who fraudulently claims this
refund is liable for repayment of the refund to the Economic Development
Trust Fund plus a mandatory penalty of 200 percent of the tax refund
which shall be deposited into the General Revenue Fund. Any qualified
defense contractor who fraudulently claims this refund commits a felony
of the third degree, punishable as provided in s. 775.082, s. 775.083, or s.
775.084.

November 5, 1993

3. The Department of Defense contract numbers of the contract to be
consolidated, the new Department of Defense contract number, or the
"RFP" number of a proposed Department of Defense contract.
4. The date the contract was executed or is expected to be executed,
and the date the contract is due to expire or is expected to expire.
5. The commencement date for project operations under the contract
in Florida.
6. The number of full-time equivalent jobs in Florida that are or will
be dedicated to the project during the year and the average wage of such
jobs.
7. The total number of full-time equivalent employees employed by
the applicant in Florida.
8. The percentage of the defense contractor's gross receipts derived
from Department of Defense contracts during the 5 taxable years
immediately preceding the date the application is submitted.
9. The amount of:
a. Taxes on sales, use, and other transactions paid pursuant to part
I of chapter 212;
b. Corporate income taxes paid pursuant to chapter 220;
c. Intangible personal property taxes paid pursuant to chapter 199;
d. Emergency excise taxes paid pursuant to chapter 221;
e. Excise taxes paid on documents pursuant to chapter 201; and
f. Ad valorem taxes paid
during the 5 fiscal years immediately preceding the date of the
application, and the projected amounts of such taxes to be due in the 3
fiscal years immediately following the date of the application.
10. The estimated amount of tax refunds to be claimed in each fiscal
year.
11. A brief statement concerning the defense contractor's need for tax
refunds, and the proposed uses of such refunds by the defense contractor.
12. A resolution adopted by the county commissioners of the county
in which the project will be located, which recommends the defense
contractor be approved as a qualified defense contractor, and which
pledges local financial support for the contractor.
13. Any additional information requested by the division.
(c) Applications for certification based on the conversion of defense
production jobs to non-defense production jobs shall be submitted to the
division as prescribed by the Department of Commerce which includes,
but is not limited to, the following information:

(3) APPLICATION PROCESS; REQUIREMENTS; AGENCY 1. The applicant's federal employer identification number and the
DETERMINATION.- applicant's Florida sales tax registration number.

(a) To apply for certification as a qualified defense contractor
pursuant to this section, a defense contractor shall file an application
with the division which satisfies the requirements of paragraphs (b) and
(d) or paragraphs (c) and (d). A defense contractor may not apply for
certification pursuant to this section after a proposal has been submitted
for a new Department of Defense contract, after the defense contractor
has made the decision to consolidate an existing Department of Defense
contract in this state for which such defense contractor is seeking
certification, or after the defense contractor has made the decision to
convert defense production jobs to non-defense production jobs for which
such defense contractor is seeking certification.
(b) Applications for certification based on the consolidation of a
Department of Defense contract or a new Department of Defense contract
shall be submitted to the division as prescribed by the Department of
Commerce which includes, but is not limited to, the following information:
1. The applicant's federal employer identification number and the
applicant's Florida sales tax registration number.
2. The permanent location of the manufacturing, assembling,
fabricating, research, development, or design facility in Florida at which
the project is or is to be located.

2. The permanent location of the manufacturing, assembling,
fabricating, research, development, or design facility in Florida at which
the project is or is to be located.
3. The Department of Defense contract numbers of the contract under
which the defense production jobs will be converted to non-defense
production jobs.
4. The date the contract was executed, and the date the contract is
due to expire or is expected to expire.
5. The commencement date for the non-defense production
operations in Florida.
6. The number of full-time equivalent jobs in Florida that are or will
be dedicated to the non-defense production project during the year and
the average wage of such jobs.
7. The total number of full-time equivalent employees employed by
the applicant in Florida.
8. The percentage of the defense contractor's gross receipts derived
from Department of Defense contracts during the 5 taxable years
immediately preceding the date the application is submitted.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

9. The amount of:
a. Taxes on sales, use, and other transactions paid pursuant to part
I of chapter 212;
b. Corporate income taxes paid pursuant to chapter 220;
c. Intangible personal property taxes paid pursuant to chapter 199;
d. Emergency excise taxes paid pursuant to chapter 221;
e. Excise taxes paid on documents pursuant to chapter 201; and
f. Ad valorem taxes paid
during the 5 fiscal years immediately preceding the date of the
application, and the projected amounts of such taxes to be due in the 3
fiscal years immediately following the date of the application.
10. The estimated amount of tax refunds to be claimed in each fiscal
year.
11. A brief statement concerning the defense contractor's need for tax
refunds, and the proposed uses of such refunds by the defense contractor.
12. A resolution adopted by the county commissioners of the county
in which the project will be located, which recommends the defense
contractor be approved as a qualified defense contractor, and which
pledges local financial support for the contractor.
13. Any additional information requested by the division.
(d) To qualify for review by the division, the application of a defense
contractor must, at a minimum, establish the following to the satisfaction
of the division:
1. The jobs proposed to be provided under the application, pursuant
to subparagraph (b)6. or (c)6., must pay an estimated annual average
wage equaling at least 115 percent of the average wage in the area where
the project is to be located.
2. The consolidation of a Department of Defense contract must result
in a net increase of at least 25 percent in the number of jobs at the defense
contractor's facilities in Florida or the addition of at least 80 jobs at the
defense contractor's facilities in Florida.
3. The conversion of defense production jobs to non-defense
production jobs must result in net increases in private commercial
employment at the defense contractor's facilities in Florida.
4. The Department of Defense contract cannot allow the business to
include the costs of relocation or retooling in its base as allowable costs
under a cost plus, or similar, contract.
5. The defense contractor or a business unit of the contractor must
have derived not less than 70 percent of its gross receipts in this state
from Department of Defense contracts over the defense contractor's last
fiscal year, and must have derived not less than 80 percent of its gross
receipts in this state from Department of Defense contracts over the 5
years preceding the date an application is submitted pursuant to this
section.
(e) Each application meeting the requirements of paragraphs (b) and
(d) or paragraphs (c) and (d) shall be submitted to the division for a
determination of eligibility. The division shall review, evaluate, and score
each application based on, but not limited to, the following criteria:
1. Expected contributions to the state strategic economic
development plan adopted by Enterprise Florida, Inc., taking into
account the extent to which the project contributes to the state's high-
technology base, and the long-term impact of the project and the
applicant on the state's economy.
2. The economic benefit of the jobs created or retained by the project
in Florida, taking into account the cost and average wage of each job
created or retained, and the potential risk to existing Florida jobs.
3. The amount of capital investment to be made by the applicant in
Florida.
4. The local commitment and support for the project and defense
contractor.
5. The impact of the project on the local community, taking into

account the unemployment rate for the county where the project will be
located.

6. The dependence of the local community on the defense industry.
7. The impact of any tax refunds granted pursuant to this section on
the viability of the project and the probability that the project will occur
in Florida if such tax refunds are granted to the applicant, taking into
account the expected long-term commitment of the applicant to economic
growth and employment in Florida.
8. The length of the project, or the expected long-term commitment
to Florida resulting from the project.
(f) The division shall forward its written findings and evaluation on
each application meeting the requirements of paragraphs (b) and (d) or
paragraphs (c) and (d) to the secretary within 60 calendar days of receipt
of a complete application. The division shall notify each defense
contractor when its application is complete, and when the 60-day period
begins. In its written report to the secretary, the division shall specifically
address each of the factors specified in paragraph (e), and shall make a
specific assessment with respect to the minimum requirements
established in paragraph (d). The division shall include in its report
projections of the tax refund claims that will be sought by the defense
contractor in each fiscal year based on the information submitted in the
application.
(g) Within 30 days of receipt of the division's findings and evaluation,
the secretary shall enter a final order which shall either approve or
disapprove a defense contractor's application. The decision shall be in
writing, and shall provide the justifications for either approval or
disapproval. If appropriate, the secretary shall enter into a written
agreement with the qualified defense contractor pursuant to subsection
(4).
(h) The secretary shall not enter any final order which certifies any
defense contractor as a qualified defense contractor when the aggregate
amount of tax refunds for all qualified defense contractors projected by
the division in any fiscal year exceeds $10 million. A final order which
approves a defense contractor's application shall specify the maximum
amount of a tax refund that is to be available to the contractor in each
fiscal year and the total amount of tax refunds for all fiscal years.
(i) Nothing in this section shall create a presumption that an
applicant should receive any tax refunds under this section.
(4) QUALIFIED DEFENSE CONTRACTOR TAX REFUND
AGREEMENT.-
(a) A qualified defense contractor shall enter into a written
agreement with the department containing, but not limited to, the
following:
1. The total number of full-time equivalent jobs in Florida that are
or will be dedicated to the qualified defense contractor's project, the
average wage of such jobs, the definitions that will apply for measuring
the achievement of these terms during the pendency of the agreement,
and a time schedule or plan for when such jobs will be in place and active
in Florida. This information shall be the same as the information
contained in the application submitted by the contractor pursuant to
subsection (3).
2. The maximum amount of a refund that the qualified defense
contractor is eligible to receive in each fiscal year.
3. An agreement with the department allowing the department to
review and verify the financial and personnel records of the qualified
defense contractor to ascertain whether the qualified defense contractor
is complying with the requirements of this section.
4. The date after which, each fiscal year, the qualified defense
contractor may file an annual claim pursuant to subsection (5).
5. That local financial support shall be annually available and will be
paid to the Economic Development Trust Fund.
(b) Compliance with the terms and conditions of the agreement shall
be a condition precedent for receipt of tax refunds each year. The failure
to comply with the terms and conditions of the agreement shall result in
the loss of eligibility for receipt of all tax refunds previously authorized

pursuant to this section, and the revocation of the certification as a
qualified defense contractor by the secretary.

81

November 5, 1993

82 JOURNAL OF THE HOUSE

(c) The agreement shall be signed by the secretary and the authorized
officer of the qualified defense contractor within 30 days of the entry of
a final order certifying the qualified defense contractor pursuant to
subsection (3).
(d) The agreement must contain the following legend, clearly printed
on its face in bold type of not less than 10 points:
"This agreement is neither a general obligation of the State of
Florida, nor is it backed by the full faith and credit of the State of
Florida. Payment of tax refunds are conditioned on and subject to
specific annual appropriations by the Florida Legislature of funds
sufficient to pay amounts authorized in s. 288.104, Florida Statutes."
(5) ANNUAL CLAIM FOR REFUND FROM A QUALIFIED
DEFENSE CONTRACTOR.-
(a) Qualified defense contractors who have entered into a written
agreement with the department pursuant to subsection (4) and who have
entered into a valid new Department of Defense contract, commenced the
consolidation of a Department of Defense contract, or commenced the
conversion of defense production jobs to non-defense productions jobs
may apply once each fiscal year to the Department of Commerce for tax
refunds. The application shall be made on or after the date contained in
the agreement entered into pursuant to subsection (4).
(b) The claim for refund by the qualified defense contractor shall
include a copy of all receipts pertaining to the payment of taxes for which
a refund is sought, and data related to achieving each performance item
contained in the tax refund agreement pursuant to subsection (4). The
amount requested as a tax refund shall not exceed the amount for the
fiscal year in the written agreement entered pursuant to subsection (4).
(c) No tax refund may be approved for any qualified defense
contractor unless local financial support has been paid to the Economic
Development Trust Fund in that fiscal year. If the local financial support
is less than 20% of the approved tax refund, the tax refund shall be
reduced. In no event shall the tax refund paid exceed five times the local
financial support received. A report listing all sources of the local
financial support shall be provided to the division when such support is
paid to the Economic Development Trust Fund.
(d) The secretary, with such assistance as may be required from the
division, the Department of Revenue, or the Department of Labor and
Employment Security, shall make a determination as to the amount of
the tax refund that shall be authorized for the qualified defense
contractor for the fiscal year in a written final order within 30 days of the
date the claim for the annual tax refund is received by the Department
of Commerce.
(e) The total amount of tax refunds approved by the secretary under
this section in any fiscal year shall not exceed the amount appropriated
to the Economic Development Trust Fund for such purposes for the fiscal
year. In the event the Legislature does not appropriate an amount
sufficient to satisfy projections by the division for tax refunds in a fiscal
year, the secretary shall, not later than July 15 of such year, determine
the proportion of each refund claim which shall be paid by dividing the
amount appropriated for tax refunds for the fiscal year by the projected
total amount of refund claims for the fiscal year. The amount of each
claim for a tax refund shall be multiplied by the resulting quotient. If,
after the payment of all such refund claims, funds remain in the
Economic Development Trust Fund for tax refunds, the secretary shall
recalculate the proportion for each refund claim and adjust the amount
of each claim accordingly.
(f) Upon approval of the tax refund pursuant to paragraphs (c) and
(d), the Comptroller shall issue a warrant for the amount included in the
final order. In the event of any appeal of the final order, the Comptroller
shall not issue a warrant for a refund to the qualified defense contractor
until the conclusion of all appeals of the final order.
(6) ADMINISTRATION.-

(a) The department shall adopt rules pursuant to chapter 120 for the
administration of this section.
(b) The department is authorized to verify information provided in
any claim submitted for tax credits under this section with regard to

]

be necessary. The division or an appeals referee may require from any
employing unit any sworn or unsworn reports, with respect to persons
employed by it, deemed necessary for the effective administration of this
chapter. Information revealing the employing unit's or individual's
identity thus obtained from the employing unit or from any individual

E OF REPRESENTATIVES November 5, 1993

employment and wage levels or the payment of the taxes with the
appropriate agency or authority including the Department of Revenue,
the Department of Labor and Employment Security, or any local
government or authority.
(c) To facilitate the process of monitoring and auditing applications
made under this program, the department may provide a list of qualified
defense contractors to the Department of Revenue, the Department of
Labor and Employment Security, or to any local government or authority.
The department may request the assistance of said entities with respect
to monitoring the payment of the taxes listed in subsection (2).
(d) By September 30 of each year, the department shall submit a
complete and detailed report to the Defense Transition and Conversion
Commission, created under Executive Order 93-118, of all tax refunds
paid under this section, including analyses of benefits and costs, types of
projects supported, employment and investment created, geographic
distribution of tax refunds granted, and minority business participation.
The report must indicate whether the moneys appropriated by the
Legislature to the qualified defense contractor tax refund program were
expended in a prudent, fiducially sound manner. By December 1 of each
year, the Defense Transition and Conversion Commission shall review
and comment on the report, and shall submit the report together with the
commission's comments to the Governor, the President of the Senate, and
the Speaker of the House of Representatives.
(7) EXPIRATION.-This section shall expire and be void on June 30,
1998.
Section 3. Paragraph (1) is added to subsection (7) of section 213.053,
Florida Statutes, to read:
213.053 Confidentiality and information sharing.-
(7) Notwithstanding any other provision of this section, the
department may provide:
(1) Payment information relative to chapters 199, 201, 212, 220, and
221 to the Department of Commerce in its administration of the qualified
defense contractor tax refund program authorized by s. 288.104.
Disclosure of information under this subsection shall be pursuant to a
written agreement between the executive director and the agency. Such
agencies, governmental or nongovernmental, shall be bound by the same
requirements of confidentiality as the Department of Revenue. This
exemption is subject to the Open Government Sunset Review Act in
accordance with s. 119.14. Breach of confidentiality is a misdemeanor of
the first degree, punishable as provided by s. 775.082 or s. 775.083.
Section 4. Section 288.095, Florida Statutes, is amended to read:
288.095 Economic Development Trust Fund.-
(1) The Economic Development Trust Fund is created within the
Division of Economic Development of the Department of Commerce.
Moneys deposited into the fund must be used only to support the
authorized activities and operations of the division.
(2) Moneys appropriated for or reimbursed to the qualified defense
contractor tax refund program and local financial support must be
deposited in the Economic Development Trust Fund. Funds
appropriated for or reimbursed to the qualified defense contractor trust
refund program shall be subject to the provisions of s. 216.301(1) (a). This
subsection expires December 31, 1998.
Section 5. Subsection (7) of section 443.171, Florida Statutes, is
amended to read:
443.171 Division and commission; powers and duties; rules; advisory
council; records and reports.-
(7) RECORDS AND REPORTS.-Each employing unit shall keep
true and accurate work records, containing such information as the division
may prescribe. Such records shall be open to inspection and be subject to
being copied by the division at any reasonable time and as often as may

pursuant to the administration of this chapter, shall, except to the extent
necessary for the proper presentation of a claim or upon written
authorization of the claimant who has a workers' compensation claim
pending, be held confidential and exempt from the provisions of s.
119.07(1). Such information shall be available only to public employees in
the performance of their public duties, including employees of the
Department of Education in obtaining information for the Florida
Education and Training Placement Information Program and the
Department of Commerce in its administration of the qualified defense
contractor tax refund program authorized by s. 288.104. This exemption
is subject to the Open Government Sunset Review Act in accordance with
s. 119.14. Any claimant (or his legal representative) at a hearing before an
appeals referee or the commission shall be supplied with information from
such records to the extent necessary for the proper presentation of his
claim. Any employee or member of the commission or any employee of the
division, or any other person receiving confidential information, who
violates any provision of this subsection commits a misdemeanor of the
second degree, punishable as provided in s. 775.082 or s. 775.083. However,
the division may furnish to any employer copies of any report previously
submitted by such employer, upon the request of such employer, and the
division is authorized to charge therefore such reasonable fee as the division
may by rule prescribe not to exceed the actual reasonable cost of the
preparation of such copies. Fees received by the division for copies as
herein provided shall be deposited to the credit of the Employment
Security Administration Trust Fund.
Section 6. In the event that a court of competent jurisdiction
determines any of the provisions of this act to be unconstitutional, it is
the intent of the Legislature that the provisions contained in this act shall
be null and void. To this end, the Legislature declares that it would not
have enacted any of the provisions of this act individually and, to that
end, expressly finds them not to be severable.
Section 7. The sum of $2,000,000 is appropriated from the General
Revenue Fund to the Economic Development Trust Fund of the
Department of Commerce for fiscal year 1993-1994. From the Economic
Development Trust Fund, the following amounts are appropriated to the
Department of Commerce for fiscal year 1993-1994:
(1) The sum of $1,907,550 for the purpose of carrying out the
provisions of this act.
(2) The sum of $92,450, and two full-time positions and one OPS
position are authorized, to administer the provisions of this act.
Section 8. This act shall take effect upon becoming a law. This act shall
be repealed on April 15, 1994, if no qualified defense contractor, as defined
in section 2 of this act, has entered into a valid new Department of Defense
contract or commenced the consolidation of a Department of Defense
contract, which will result in the employment of at least 1,000 full-time
employees. A qualified defense contractor which enters such a contract
shall notify the Secretary of the Department of Commerce in writing no
later than April 14, 1994.
and the title is amended as follows:
On page 1, line 1, strike the entire title and insert:
A bill to be entitled An act relating to federal defense contractors;
providing legislative findings; creating s. 288.104, F.S.; establishing a
qualified defense contractor tax refund program; providing definitions;
authorizing refunds from the Economic Development Trust Fund of
specified taxes paid by a qualified defense contractor engaged in a new
Department of Defense contract, consolidation of a Department of Defense
contract, or conversion of defense production jobs to non-defense
production jobs; providing limitations; providing penalties for fraudulent
claims; providing application procedures and requirements; providing for
review and evaluation by the Division of Economic Development;
providing for certification by the Secretary of Commerce; requiring such
contractors to enter into a written agreement with the Department of
Commerce; requiring annual application for tax refunds; providing for
administration by the department; requiring annual reports to the Defense
Transition and Conversion Commission and the Governor and Legislature;
providing for expiration; amending s. 213.053, F.S.; authorizing the

Department of Revenue to furnish certain information to the Department
of Commerce in its administration of the program; providing a penalty for

83

breach of confidentiality; amending s. 288.095, F.S., relating to the
Economic Development Trust Fund; providing for the deposit of moneys
into that trust fund; amending s. 443.171, F.S.; authorizing the Division of
Unemployment Compensation to release certain information to the
Department of Commerce in its administration of the program; providing
a penalty for breach of confidentiality; providing nonseverability;
providing an appropriation and authorizing positions; providing an
effective date; providing for repeal.
Rep. Reddick moved the adoption of the substitute amendment.
The Committee on Appropriations offered the following amendment to
the substitute amendment:
Amendment 1 to Substitute Amendment 1-On page 21, line 27,
through page 22, line 7, strike all of said lines and renumber subsequent
sections
and the title is amended as follows:
On page 24, lines 3 and 4 strike "providing an appropriation and
authorizing positions;"
Rep. Reddick moved the adoption of the amendment to the substitute
amendment, which was adopted.
Representatives) Upchurch and Roberts offered the following
amendment to the substitute amendment:
Amendment 2 to Substitute Amendment 1-On page 9, line 24,
before the period insert:, or was canceled
Rep. Upchurch moved the adoption of the amendment to the substitute
amendment, which was adopted.

THE SPEAKER IN THE CHAIR
Representatives) Reddick offered the following amendment to the
substitute amendment:
Amendment 3 to Substitute Amendment 1-On page 16, line 25,
after the period, insert: Further, funding from local sources includes tax
abatement under s. 196.1995 provided to a qualified defense contractor;
and the amount of any tax refund for such contractor approved under this
section shall be reduced by the amount of any such tax abatement; and
the limitations in subsection (2) and paragraph (3)(h) shall be reduced
by the amount of any such tax abatement.
Rep. Reddick moved the adoption of the amendment to the substitute
amendment, which was adopted.
Representatives) Constantine offered the following amendment to the
substitute amendment:
Amendment 4 to Substitute Amendment 1-On page 9, lines 4 and
5, and on page 10, lines 30 and 31, strike said lines and insert: defense
contractor, and which indicates that the necessary commitments of local
financial support for the contractor exists. Prior to the adoption of the
resolution, the county commission may review the proposed public or
private sources of such support and determine whether the proposed
sources of local financial support can be provided.
Rep. Constantine moved the adoption of the amendment to the
substitute amendment, which was adopted.
The question recurred on the adoption of Substitute Amendment 1,
as amended, which was adopted.
On motion by Rep. Reddick, the rules were waived by the required two-
thirds vote and CS/SB 32-C, as amended, was read the third time by title.
On passage, the vote was:
Yeas-112

The Chair
Abrams
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Barreiro

Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard

Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove

Couch
Crady
Crist
Davis
Dawson
De Grandy
Dennis
Edwards

November 5, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Eggelletion
Feeney
Feren
Fuller
Futch
Garcia
Gay
Geller
Glickman
Goode
Gordon
Graber
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland

Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan
King
Klein
Laurent
Lawson
Lippman
Littlefield
Mackenzie
Mackey
Manrique
McAndrews
McClure
McMahan
Merchant
Miller

Minton
Mishkin
Mitchell
Morroni
Morse
Ogles
Peeples
Posey
Pruitt
Rayson
Reddick
Roberts
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler

Nays-None
So the bill passed, as amended, and was immediately certified to the
Senate.

Recessed
On motion by Rep. Wallace, the House stood in recess at 2:10 p.m., to
reconvene at 4:30 p.m. today or upon the call of the Speaker.

Reconvened
The House was called to order by the Speaker at 6:06 p.m. A quorum was
present.

Communications
The following proclamation was read:

PROCLAMATION

State of Florida
Executive Department
Tallahassee
TO THE HONORABLE MEMBERS OF THE FLORIDA SENATE AND
THE FLORIDA HOUSE OF REPRESENTATIVES:
WHEREAS, the Thirteenth Legislature of the State of Florida, under
the Florida Constitution, 1968 Revision, convened in regular session on
Tuesday, February 2, 1993, and adjourned sine die on Sunday, April 4,
1993, and
WHEREAS, by proclamation dated October 11, 1993, and amended
November 1, 1993, and November 3, 1993, the Governor called the Florida
Legislature into special session to convene on November 1, 1993, and to end
at 11:59 p.m. Friday, November 5, 1993, and
WHEREAS, the Florida Legislature has failed to completely consider all
the issues set out in the October 11, 1993, proclamation, as amended,
within the time provided by those earlier Proclamations of the Governor,
thus requiring an amendment to provide additional time for consideration
of those issues.
NOW, THEREFORE, I, LAWTON CHILES, Governor of the State of
Florida, by virtue of the power and authority vested in me by Article III,
Section 3(c)(1), Florida Constitution, do hereby proclaim as follows:
Section 1 of the Proclamation of the Governor dated October 11, 1993,
as amended November 1, 1993, and November 3, 1993, is hereby amended
to read:
Section 1.
The Legislature of the State of Florida remains convened in Special
Session pursuant to the Proclamation of the Governor which commenced
on Monday, November 1, 1993, at 2:00 p.m.; this Special Session of the

November 5, 1993

Shepard
Simon
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas
Thrasher
Tobin
Trammell
Upchurch
Valdes
Villalobos
Wallace
Warner
Webster
Wise

they are designated in writing by the agency head or person designated
in this subsection:

84

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Legislature shall remain convened until Wednesday, November 10, 1993,
at 11:59 p.m.

IN TESTIMONY WHEREOF, I have hereunto set
my hand and have caused the Great Seal of the
State of Florida to be affixed at Tallahassee, the
Capitol, this 5th day of November, 1993.
LAWTON CHILES
Governor
ATTEST:
JIM SMITH
Secretary of State

Messages from the Senate

The Honorable Bolley L. Johnson, Speaker
I am directed to inform the House of Representatives that the Senate has
admitted for introduction and consideration by the required constitutional
two-thirds vote and adopted HCR 67-C, with amendments, and requests
the concurrence of the House.
Joe Brown, Secretary

HCR 67-C-A concurrent resolution providing for amendment of Joint
Rule One, Joint Rules of the Senate and House of Representatives, relating
to lobbyist registration and reporting; revising registration requirements;
providing definitions; requiring committee appearance records; revising
the method of registration; revising fees; revising reporting periods;
providing categories, expenditure valuation procedures, and types of
reports; revising exemptions from reporting; revising the method for
requesting opinions regarding registration; providing for informal
opinions; revising open records provisions; providing for records retention
and inspection; providing for implementation.

Senate Amendment 1-On page 2, strike all of lines 15-17, and
insert: the goodwill of a member or employee of the Legislature.
Senate Amendment 2-On page 3, strike all of lines 16-31, and
insert:
(a) Response to an inquiry for information by any member,
committee, or staff of the Legislature.
(b) An appearance in response to a legislative subpoena.
(c) Advice or services which arise out of a contractual obligation with
the Legislature, a member, a committee, any staff, or any legislative
entity to render the advice or services where such obligation is fulfilled
through the use of public funds.
(d) Representation of a client before the House of Representatives or
the Senate, or any member or committee
Senate Amendment 3-On page 4, strike all of lines 17-21, and
insert:
(f) A person employed by any executive, judicial, or
Senate Amendment 4--0On page 18, strike line 13, and insert: of a
complaint based upon the personal knowledge of the complainant made
pursuant to the Senate Rules or Rules of
Senate Amendment 5 (with Title Amendment)-On page 8, lines
14-31, and on page 9, lines 1-20, strike all of said lines and insert:
(2) Pursuant to the prohibition on the use of funds available to
executive, judicial, or quasi-judicial departments for lobbying purposes,
as set forth in s. 11.062, Florida Statutes, the Joint Legislative
Management Committee may not accept funds appropriated to or
otherwise available for use by such departments for the payment of a
lobbyist registration fee.
(3) The following persons are exempt from paying the fee, provided

November 5, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

(a) Two employees of each department of the executive branch
created under chapter 20, Florida Statutes.
(b) Two employees of the Game and Fresh Water Fish Commission.
(c) Two employees of the Executive Office of the Governor.
(d) Two employees of the Commission on Ethics.
(e) Two employees of the Florida Public Service Commission.
(f) Two employees of the judicial branch designated in writing by the
Chief Justice of the Florida Supreme Court.
(a) Any per- on who r1c- ivo no compensation for his appear.an,-o other
than reasonable reimbursement for his travel and meal expenses.

(b)-Any

" governmental oicmial elected in the State of 0lorida.

(c) Two Amployee. of each state agency who are designated in writing
by the head of the agency.
Persons who are not required to regi ter under Joint Senate and HouT e
Rule 1.1, but who chooe to do so, shall pay a procc- ing fee of $10.00 per
houce per biennium.
(4)-2) The annual fee is up to $50 per each house for a person to
register to represent one principal and up to an additional $10 per house
for each additional principal that the person registers to represent. The
amount of each fee shall be established annually by the Joint Legislative
Management Committee. The fees set shall be adequate to ensure
operation of the lobbyist registration and reporting operations of the
Joint Legislative Management Committee. The fees collected by the Joint
Legislative Management Committee under this joint policy shall be
deposited in the State Treasury and credited to the appropriation for
legislative expenses specifically to cover the costs incurred in administering
this joint policy.
And the title is amended as follows:
In title, on page 1, strike line 9, and insert: prohibiting the Joint
Legislative Management Committee from accepting specified funds for the
payment of lobbyist registration fees; revising fees; revising reporting
periods;
On motions by Rep. Wallace, the House concurred in Senate
Amendments 1, 2, 3 and 4; refused to concur in Senate Amendment 5 and
requested the Senate to recede therefrom. The question recurred on the
adoption of HCR 67-C. The concurrent resolution, as amended, was
adopted. The action, together with the concurrent resolution and
amendments thereto, was immediately certified to the Senate.

Motions Relating to Committee References
On motion by Rep. Boyd, Chair, agreed to by two-thirds vote, SB 30-C
was withdrawn from the Committee on Governmental Operations and
placed on the Calendar.

Bills and Joint Resolutions on Second Reading
SB 30-C-A bill to be entitled An act relating to administration of the
Defense Reinvestment Incentive Program; providing a public records
exemption for certain information received by the Department of
Commerce pursuant thereto; providing for future review and repeal in
accordance with s. 119.14, F.S.; providing legislative findings; providing an
effective date.
-was read the second time by title.
Representatives) Boyd and Reddick offered the following amendment:
Amendment 1-Strike everything after the enacting clause and insert:
Section 1. Section 288.106, Florida Statutes, is created to read:
288.106 Confidentiality of records.-Certain proprietary information
required to be included on applications pursuant to s. 288.104(3)(b)1., 8.,
9., and 11. or s. 288.104(3)(c)1., 8., 9., and 11. and tax data required
pursuant s. 288.104(5) (b) received by the Department of Commerce under
its administration of the qualified defense contractor tax refund program
are confidential and exempt from the provisions of s. 119.07(1) and s.

24(a) of Article I of the State Constitution for a period of 10 years. This
exemption is subject to the Open Government Sunset Review Act in
accordance with s. 119.14.
Section 2. The Legislature finds that exempting from the public
records law certain proprietary information and tax data contained in an
application for a tax refund submitted by a defense contractor pursuant
to s. 288.104, Florida Statutes, from public records requirements is a
public necessity in that the harm to such a defense contractor would
outweigh any public benefit derived from release of such information.
Public access to such information could potentially reveal legitimate
private business information, placing the defense contractor at a
competitive disadvantage to other defense contractors outside the state.
Should this information be subject to public disclosure, a defense
contractor currently doing business in this state might be reluctant to
apply to the program and thus not be able to take advantage of the tax
refunds available.
Section 3. This act shall take effect on the same date as Senate Bill
32-C or similar legislation creating s. 288.104, Florida Statutes, takes effect,
if such legislation is adopted in the same legislative session or an extension
thereof. This act shall be repealed on April 15, 1994, if no qualified defense
contractor, as defined in s. 288.104(1), has entered into a valid new
Department of Defense contract or commenced the consolidation of a
Department of Defense contract, which will result in the employment of
at least 1,000 full-time employees. A qualified defense contractor which
enters such a contract shall notify the Secretary of the Departemnt of
Commerce in writing no later than April 14, 1994.
and the title is amended as follows:

Strike the entire title and insert: A bill to be entitled An act relating to
public records; creating s. 288.106, F.S.; providing an exemption from
public records requirements for certain information filed with the
Department of Commerce by defense contractors; providing for future
review and repeal; providing a finding of public necessity; providing a
contingent effective date.
Rep. Boyd moved the adoption of the amendment, which was adopted.
On motion by Rep. Boyd, the rules were waived by the required two-
thirds vote and SB 30-C, as amended, was read the third time by title. On
passage, the vote was:
Yeas-108

The Chair
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Couch
Crady
Crist
Davis

Dawson
Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Geller
Glickman
Goode
Gordon
Graber
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones

85

Kelly
Kerrigan
King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles

Peeples
Posey
Pruitt
Rayson
Reddick
Ritchie
Roberts
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Simon
Sindler
Smith
Stabins
Stafford
Starks
Sublette
Tedder
Thomas

PP. I I 1 -1 I Cl A lb 711 .

JOURNAL OF THE HOUSE OF REPRESENTATIVES

Tobin
Trammell

Upchurch
Valdes

Wallace
Warner

Webster
Wise

Nays-None
Votes after roll call:
Yeas-Gay
So the bill passed, as amended, and was immediately certified to the
Senate.

Motions Relating to Committee References
On motion by Rep. Kelly, agreed to by two-thirds vote, HB 119-C was
withdrawn from further consideration of the House.

Conference Committee Report on CS/HB 31-C
On motion by Rep. Cosgrove, the House took up the following Report of
the Conference Committee on CS/HB 31-C:
The Honorable Pat Thomas
President of the Senate
The Honorable Bolley L. Johnson
Speaker of the House of Representatives
Sirs:
The Conference Committee on the disagreeing votes of the two Houses
on Committee Substitute for House Bill 31-C, being:

Each covered insurer will pay to the fund an actuarially determined
premium for the reimbursement provided by the fund, including an
advance payment of $1,000 to provide start-up funding. The formula for
calculation of these premiums must be approved by unanimous vote of the
State Board of Administration.
If the moneys in the fund are not sufficient to pay fund obligations, the
board is required to contract with a county or municipality for the issuance
of revenue bonds for the benefit of the fund pledging future reimbursement
premium revenues. The bonds must be validated, and the maximum term
of the bonds is 15 years. Bonding is also allowed in the absence of a
hurricane if the board determines that bonding would maximize the ability
to meet future obligations.
If the future reimbursement premium revenues are not sufficient to fund
bonds to meet reimbursement obligations, the board must direct the
Department of Insurance to levy an emergency annual assessment on all
property and casualty insurers (except workers' compensation) equal to 2
percent of the insurer's gross direct written premium for the prior year;
these emergency assessments would also be pledged to retire the bonds,
and would continue until the bonds are retired.
In addition to these powers and duties, the board is authorized to procure
reinsurance and to borrow from market sources at prevailing interest rates.
If there were no hurricanes in the prior year, up to 2 percent of the
reimbursement premium revenues from the prior year will be available for
appropriation for grants, administered by the Department of Community
Affairs, for non-recurring expenditures to support projects that directly
protect local infrastructure from potential damage from a hurricane.

The board is directed to appoint a 9-member advisory council consisting
A bill to be entitled An act relating to the Florida Hurricane Catastrophe of 3 consumers, an actuary, a meteorologist, an engineer, and
Fund; representatives of insurers, insurance agents, and reinsurers.
having met, and after full and free conference, do recommend to their The bill contains a declaration that the fund is a trust fund established for
respective Houses as follows: bond indentures under s. 19(f)(3) of Article III of the State Constitution.

1. That the Senate recede from its Amendment #1.
2. That the House and Senate adopt the Conference Committee
Amendment, attached thereto, and by reference made a part of this report.
3. That the House and Senate pass Committee Substitute for House
Bill 31-C as amended by the Conference Committee Amendment.

Betty Holzendorf, Vice Chairman
John Grant
Ken Jenne
John McKay
Managers on the part of the
Senate

John Cosgrove, Chairman
Stan Bainter
Steven A. Geller
Debbie Wasserman Schultz
Managers on the part of the
House of Representatives

Summary of Conference Committee Action:
Section 1 creates s. 215.555, F.S., creating the Florida Hurricane
Catastrophe Fund. The section contains findings establishing that the
unavailability of reliable private sector property insurance coverage
endangers the state's economy and the public health, safety, and welfare,
and that the creation of the Florida Hurricane Catastrophe Fund is a valid
and necessary public and governmental purpose.
The section creates the Florida Hurricane Catastrophe Fund to be
administered by the State Board of Administration. Moneys in the fund
may be used only to pay obligations of the fund under reimbursement
contracts, payment of debts including retirement of revenue bonds issued
for the benefit of the fund, costs of mitigation programs authorized by the
act, costs of procuring reinsurance, and costs of administration.
The board is required to enter into a reimbursement contract with each
insurer writing policies covering commercial or residential structure. The
contract will promise to reimburse the insurer for 75 percent of its losses
from all hurricanes in any calendar year in excess of 2 times the insurer's
gross direct written premium for covered policies for the prior year, except
that for insurers with surplus as to policyholders of $15 million or less, the
level of reimbursement is 75 percent of losses in excess of 1.5 times gross
direct written premium for the prior year. However, the board's obligation
under reimbursement contracts is limited to the moneys in the fund plus
amounts the board can raise through revenue bonds that pledge future
fund premiums.

Violations of the act constitute violations of the Insurance Code.
If a federal or multistate catastrophe fund is created, the board is directed
to make recommendations to the Legislature for coordination with the
federal or multistate program, for termination of the fund, or other
appropriate action. The fund may be terminated only by law; upon
termination, assets of the fund will revert to the General Revenue Fund.
Section 2 provides that the fund is exempt from the deduction required by
s. 215.20(1), F.S.
Section 3 requires the board to seek the opinion of the Internal Revenue
Service as to the state's tax-exempt status with respect to the fund, and
to specifically seek a determination with respect to the impact of the
specific reimbursement levels for insurers with $15 million or less in
surplus.
Section 4 specifies that reimbursement premiums and emergency
assessments under the act are excluded from calculation of retaliatory
taxes.
Section 5 provides that the act takes effect upon becoming a law, except
that the act will not take effect unless the Conference Report on CS/HBs
33-C and 43-C becomes law.
Conference Committee Amendment 1-On page 2, line 13, strike
everything after the enacting clause and insert:
Section 1. Section 215.555, Florida Statutes, is created to read:
215.555 Florida Hurricane Catastrophe Fund.-
(1) FINDINGS AND PURPOSE.-The Legislature finds and
declares as follows:
(a) There is a compelling state interest in maintaining a viable and
orderly private sector market for property insurance in this state. To the
extent that the private sector is unable to maintain a viable and orderly
market for property insurance in this state, state actions to maintain
such a viable and orderly market are valid and necessary exercises of the
police power.
(b) As a result of unprecedented levels of catastrophic insured losses
in recent years, and especially as a result of Hurricane Andrew, numerous

86

November 5, 1993

JOURNAL OF THE HOUSI

insurers have determined that in order to protect their solvency, it is
necessary for them to reduce their exposure to hurricane losses. Also as
a result of these events, world reinsurance capacity has significantly
contracted, increasing the pressure on insurers to reduce their
catastrophic exposures.
(c) Mortgages require reliable property insurance, and the
unavailability of reliable property insurance would therefore make most
real estate transactions impossible. In addition, the public health, safety,
and welfare demand that structures damaged or destroyed in a
catastrophe be repaired or reconstructed as soon as possible. Therefore,
the inability of the private sector insurance and reinsurance markets to
maintain sufficient capacity to enable residents of this state to obtain
property insurance coverage in the private sector endangers the economy
of the state and endangers the public health, safety, and welfare.
Accordingly, state action to correct for this inability of the private sector
constitutes a valid and necessary public and governmental purpose.
(d) The insolvencies and financial impairments resulting from
Hurricane Andrew demonstrate that many property insurers are unable
or unwilling to maintain reserves, surplus, and reinsurance sufficient to
enable the insurers to pay all claims in full in the event of a catastrophe.
State action is therefore necessary to protect the public from an insurer's
unwillingness or inability to maintain sufficient reserves, surplus, and
reinsurance.
(e) A state program to provide reimbursement to insurers for a
portion of their catastrophic hurricane losses will create additional
insurance capacity sufficient to ameliorate the current dangers to the
state's economy and to the public health, safety, and welfare.
(f) It is essential to the functioning of a state program to increase
insurance capacity that revenues received be exempt from federal
taxation. It is therefore the intent of the Legislature that this program
be structured as a state trust fund under the direction and control of the
State Board of Administration and operate exclusively for the purpose
of protecting and advancing the state's interest in maintaining insurance
capacity in this state.
(2) DEFINITIONS.-As used in this section:
(a) "Actuarially indicated" means, with respect to premiums paid by
insurers for reimbursement provided by the fund, an amount determined
according to principles of actuarial science to be adequate, but not
excessive, in the aggregate, to pay current and future obligations and
expenses of the fund, including additional amounts if needed to retire
revenue bonds issued under subsection (6), and determined according to
principles of actuarial science to reflect each insurer's relative exposure
to hurricane losses.
(b) "Covered event" means any one or more storms that make landfall
in Florida in one calendar year which are declared to be hurricanes by a
the National Hurricane Center.
(c) "Covered policy" means any personal lines or commercial property
insurance policy covering property in this state, including, but not
limited to, any homeowner's, mobile home owner's, farm owner's,
condominium association, condominium unit owner's, or commercial
multi-peril policy, or any other policy covering a residential or
commercial structure or its contents issued by any authorized insurer,
including any joint underwriting association. "Covered policy" does not
include any reinsurance agreement.
(d) "Losses" means direct incurred losses and loss adjustment
expenses.
(3) FLORIDA HURRICANE CATASTROPHE FUND CREATED.--
There is created the Florida Hurricane Catastrophe Fund to be
administered by the State Board of Administration. Moneys in the fund
may not be expended, loaned, or appropriated except to pay obligations
of the fund arising out of reimbursement contracts entered into under
subsection (4), payment of debts including obligations arising out of
revenue bonds issued under subsection (6), costs of the mitigation
program under subsection (7), costs of procuring reinsurance, and costs
of administration of the fund. The board shall invest the moneys in the
fund pursuant to ss. 215.44-215.52. Earnings from all investments shall
be retained in the fund. The board may employ or contract with such staff

and professionals as the board deems necessary for the administration of
the fund. The board may adopt rules to implement this section.

November 5, 1993

be approved by unanimous vote of the board. The board may, at any time,
revise the formula pursuant to the procedure provided in this paragraph.
(c) No later than April 1 of each year, each insurer shall notify the
board of its insured values under covered policies by zip code, as of
December 31 of the previous year. On the basis of these reports, the board

E OF REPRESENTATIVES 87

(4) REIMBURSEMENT CONTRACTS.-
(a) The board shall enter into a contract with each insurer writing
covered policies in this state to provide to the insurer the reimbursement
described in paragraph (b), in exchange for the reimbursement premium
paid into the fund under subsection (5). As a condition of doing business
in this state, each such insurer shall enter into such a contract.
(b) The contract shall contain a promise by the board to reimburse the
insurer for 75 percent of its losses from covered events in excess of two
times the insurer's gross direct written premium from covered policies for
the prior year, except that with respect to an insurer having surplus as
to policyholders in the amount of $15 million or less as of December 31
of the year preceding the covered event, the contract shall contain a
promise to reimburse the insurer for 75 percent of its losses from covered
events in excess of 1.5 times the insurer's gross direct written premium
from covered policies for the prior year. The contract shall provide that
reimbursement amounts shall not be reduced by reinsurance paid or
payable to the insurer from other sources; however, recoveries from such
other sources, taken together with reimbursements under the contract,
may not exceed 100 percent of the insurer's losses from covered events.
(c) The contract shall Ilso provide that the obligation of the board
with respect to all contracts covering a particular year shall not exceed
the moneys in the fund, together with the maximum amount that the
board is able to raise through the issuance of revenue bonds under
subsection (6). The contract shall require the board to annually notify
insurers of the fund's anticipated borrowing capacity for the next year.
(d) The contract shall require the insurer to report to the board on
December 31 of each year, and quarterly thereafter, its losses from
covered events for the year. The contract shall require the board to
determine and pay, as soon as practicable after receiving these reports,
the initial amount of reimbursement due and adjustments to this amount
based on later loss information. The adjustments to reimbursement
amounts shall require the board to pay, or the insurer to return, amounts
reflecting the most recent calculation of losses. If the board determines
that the assets of the fund, together with the amount that the board
determines that it is possible to raise through revenue bonds issued under
subsection (6), are insufficient to pay reimbursement to all insurers at the
level promised in the contract, the board shall establish the
reimbursement level at the highest level for which such assets and
borrowing capacity are sufficient.
(e) The contract shall provide that if an insurer demonstrates to the
board that it is likely to qualify for reimbursement under the contract,
and demonstrates to the board that the immediate receipt of moneys from
the board is likely to prevent the insurer from becoming insolvent, the
board shall loan the insurer, at market interest rates, the amounts
necessary to maintain the solvency of the insurer, up to 50 percent of the
board's estimate of the reimbursement due the insurer. The insurer's
reimbursement shall be reduced by an amount equal to the amount of the
loan and interest thereon.
(f) The board shall adopt the initial contract form by rule no later
than February 1,1994. The board shall adopt the initial premium formula
by rule no later than March 1, 1994. Initial reimbursement contracts
under this section shall be entered into no earlier than May 1, 1994, and
no later than June 1, 1994, and shall take effect on June 1, 1994.
(5) REIMBURSEMENT PREMIUMS.-
(a) Each reimbursement contract shall require the insurer to
annually pay to the fund an actuarially indicated premium for the
reimbursement.
(b) The State Board of Administration shall select an independent
consultant to develop a formula for determining the actuarially indicated
premium to be paid to the fund. The formula shall specify, for each zip
code, the amount of premium to be paid by an insurer for each $1,000 of
insured value under covered policies in that zip code. The formula must

88 JOURNAL OF THE HOUSE

shall calculate the premium due from the insurer, based on the formula
adopted under paragraph (b). The insurer shall pay the required annual
premium pursuant to a periodic payment plan specified in the contract.
(d) All premiums paid to the fund under reimbursement contracts
shall be treated as premium for approved reinsurance for all accounting
and regulatory purposes.
(e) In order to provide startup moneys for the administration of the
fund, each insurer subject to this section shall pay to the fund an advance
premium payment of $1,000 no later than January 1, 1994. The
Department of Insurance shall collect the advance premium payments
required by this paragraph on behalf of the board. The insurer shall
receive a credit against future premiums for the advance payment.
(6) REVENUE BONDS.-
(a) Upon the occurrence of a hurricane and a determination that the
moneys in the fund are or will be insufficient to pay reimbursement at the
levels promised in the reimbursement contracts, the board shall enter into
agreements with local governments for the issuance of revenue bonds for
the benefit of the fund. The term of the bonds may not exceed 15 years.
The board shall pledge all future revenues under subsection (5) and under
paragraph (c), or a lesser portion of such revenues sufficient to raise
moneys in an amount that will pay reimbursement at the levels promised
in the reimbursement contracts, to the retirement of such bonds. The
board may also enter into such agreements in the absence of a hurricane
upon a determination that such action would maximize the ability of the
fund to meet future obligations.
(b) The governing body of any county or municipality may issue
bonds as defined in s. 125.013 or s. 166.101 from time to time to fund an
assistance program, in conjunction with the Florida Hurricane
Catastrophe Fund, for the purpose of meeting the reimbursement
obligations of the fund. The issuance of such bonds is for the public
purpose of ensuring that policyholders located within the county or
municipality are able to recover under property insurance policies after
a covered event. Revenue bonds may not be issued until validated
pursuant to the provisions of chapter 75. The county or municipality shall
enter into such contracts with the fund as are necessary to carry out this
section. Any bonds issued under this section shall be payable from and
secured by moneys received by the fund under subsection (5), and
assigned and pledged to or on behalf of the county or municipality for the
benefit of the holders of such bonds. The funds, credit, property, and
taxing power of the state or of the county or municipality shall not be
pledged for the payment of such bonds.
(c) If the board determines that the amount of revenue produced
under subsection (5) is insufficient to fund revenue bonds to pay
reimbursement at the levels promised in the reimbursement contracts,
the board shall direct the Department of Insurance to levy an emergency
assessment on each insurer writing property and casualty business in this
state. Pursuant to the emergency assessment, each such insurer shall pay
to the fund by July 1 of each year an amount equal to 2 percent of its gross
direct written premium for the prior year from all property and casualty
business in this state except for workers' compensation. The annual
assessments under this paragraph shall continue until the revenue bonds
issued with respect to which the assessment was imposed are retired. An
insurer shall not at any time be subject to more than one assessment
under this paragraph. Within 90 days after the assessment is levied under
this paragraph, each insurer subject to the assessment shall make a rate
filing for all coverages on which the assessment is based. If the filing
reflects a rate change attributable entirely to the assessment, the filing
shall consist of a certification so stating and shall be deemed approved
when made, subject to the authority of the Department of Insurance to
require actuarial justification as to the adequacy of any rate at any time.
(7) ADDITIONAL POWERS AND DUTIES.-
(a) The board may procure reinsurance from reinsurers approved
under s. 624.610 for the purpose of maximizing the capacity of the fund.

(b) In addition to borrowing under subsection (6), the board may also
borrow from any market sources at prevailing interest rates.
(c) If no covered events occurred in the prior calendar year, up to two
percent of the prior year's premium collected by the fund shall be

i]

and the title is amended as follows:
On page 1, line 1, strike the entire title and insert: A bill to be entitled
An act relating to the Florida Hurricane Catastrophe Fund; creating s.
215.555, F.S.; providing findings and purpose; providing definitions;

E OF REPRESENTATIVES November 5, 1993

available for the purpose of making legislative appropriations for grants
to local governments, state agencies, and nonprofit charitable
organizations to support programs to non-recurring expenditures for
projects that directly protect local infrastructure from potential damage
from a hurricane. Appropriations pursuant to this subsection shall be
administered by the Department of Community Affairs.
(8) ADVISORY COUNCIL.-The State Board of Administration
shall appoint a nine-member advisory council that consists of an actuary,
a meteorologist, an engineer, a representative of insurers, a
representative of insurance agents, a representative of reinsurers, and
three consumers who shall also be representatives of other affected
professions and industries, to provide the board with information and
advice in connection with its duties under this section. Members of the
advisory council shall serve at the pleasure of the board and are eligible
for per diem and travel expenses under s. 112.061.
(9) APPLICABILITY OF SECTION 19, ARTICLE III OF THE
STATE CONSTITUTION.-The Legislature finds that the Florida
Hurricane Catastrophe Fund created by this section is a trust fund
established for bond covenants, indentures, or resolutions within the
meaning of s. 19(f)(3), Art. III of the State Constitution.
(10) VIOLATIONS.-Any violation of this section constitutes a
violation of the Insurance Code.
(11) FEDERAL OR MULTISTATE CATASTROPHIC FUNDS.-
Upon the creation of a federal or multistate catastrophic insurance or
reinsurance program intended to serve purposes similar to the purposes
of the fund created by this section, the State Board of Administration
shall promptly make recommendations to the Legislature for
coordination with the federal or multistate program, for termination of
the fund, or for such other actions as the board finds appropriate in the
circumstances.
(12) REVERSION OF FUND ASSETS UPON TERMINATION.-
The fund and the duties of the board under this section may be
terminated only by law. Upon termination of the fund, all assets of the
fund shall revert to the General Revenue Fund.
Section 2. The Florida Hurricane Catastrophe Fund created by
section 215.555, Florida Statutes, is exempt from the deduction required
by section 215.20(1), Florida Statutes.
Section 3. The State Board of Administration shall, as soon as
practicable after the effective date of this act, request an expedited
opinion from the United States Internal Revenue Service as to the tax-
exempt status of the state with respect to revenues collected under s.
215.555, Florida Statutes. The request for opinion shall also seek a
determination as to whether the reimbursement levels provided in s.
215.555(4)(b), Florida Statutes, for insurers having surplus as to
policyholders of $15 million or less affects such tax-exempt status.
Section 4. Subsection (3) of section 624.5091, Florida Statutes, is
amended to read:
624.5091 Retaliatory provision, insurers.-
(3) This section does not apply as to personal income taxes, nor as to
ad valorem taxes on real or personal property, nor as to reimbursement
premiums paid to the Florida Hurricane Catastrophe Fund, nor as to
emergency assessments paid to the Florida Hurricane Catastrophe Fund,
nor as to special purpose obligations or assessments imposed by another
state in connection with particular kinds of insurance other than property
insurance, except that deductions, from premium taxes or other taxes
otherwise payable, allowed on account of real estate or personal property
taxes paid shall be taken into consideration by the department in
determining the propriety and extent of retaliatory action under this
section.
Section 5. This act shall take effect upon becoming a law, except that
this act shall not take effect unless the Conference Committee Report on
Committee Substitute for House Bills 33-C and 43-C becomes a law.

creating the Florida Hurricane Catastrophe Fund as a trust fund under the
State Board of Administration; specifying uses of moneys in the fund;
specifying applicability of other laws; requiring the fund and specified
insurers to enter into reimbursement contracts; specifying obligations of
the fund under reimbursement contracts; requiring reports; providing for
loans; requiring payment of reimbursement premium; providing for
calculation of reimbursement premium; specifying accounting and
regulatory treatment of reimbursement premium; requiring advance
payment; providing circumstances for issuance of revenue bonds on behalf
of the fund; specifying pledged revenues; authorizing units of local
government to issue such bonds; requiring validation; authorizing
emergency assessments; authorizing the fund to procure reinsurance;
authorizing borrowing by the fund; authorizing the fund to expend certain
moneys to support programs to mitigate hurricane losses; providing for
appointment of an advisory council; providing for per diem and travel
expenses; specifying applicability of s. 19, Art. III, State Constitution, to
the fund; providing that violations constitute violations of the Insurance
Code; providing for reversion of fund assets to the General Revenue Fund
upon termination; providing for recommendations with respect to federal
or multistate catastrophic funds; providing an exemption from the
deduction required by s. 215.20(1), F.S.; requiring the State Board of
Administration to request an opinion from the United States Internal
Revenue Service; amending s. 624.5091, F.S.; providing that retaliatory tax
does not apply to premiums and assessments paid to the Florida Hurricane
Catastrophe Fund; providing an effective date.
On motion by Rep. Cosgrove, the Report of the Conference Committee
on CS/HB 31-C was accepted in its entirety.
The question recurred on the passage of CS/HB 31-C. The vote was:
Yeas-108

The Chair
Armesto-Garcia
Arnall
Arnold
Ascherl
Bainter
Benson
Bitner
Bloom
Boyd
Brennan
Bronson
Brown
Bullard
Burke
Bush
Casey
Charles
Chestnut
Clemons
Constantine
Cosgrove
Couch
Crady
Crist
Davis
Dawson

Dennis
Edwards
Eggelletion
Feeney
Feren
Fuller
Futch
Gay
Geller
Glickman
Goode
Gordon
Graber
Hafner
Hanson
Harris
Hawkes
Hawkins
Healey
Hill
Ireland
Jacobs
Jamerson
Johnson, Buddy
Jones
Kelly
Kerrigan

King
Klein
Laurent
Lawson
Lippman
Littlefield
Logan
Long
Mackenzie
Mackey
Martinez
McAndrews
McClure
McMahan
Merchant
Miller
Minton
Mishkin
Mitchell
Morroni
Morse
Mortham
Ogles
Peeples
Posey
Pruitt
Rayson

Reddick
Ritchie
Roberts
Rudd
Rush
Safley
Sanderson
Saunders, D.
Saunders, R.
Schultz
Sembler
Shepard
Sindler
Smith
Stabins
Stafford
Starks
Tedder
Thomas
Tobin
Trammell
Upchurch
Valdes
Wallace
Warner
Webster
Wise

Nays-1
Sublette
So the bill passed, as amended by the Conference Committee Report.
The action, together with CS/HB 31-C and the Conference Committee
Report thereon was immediately certified to the Senate.

Conference Committee Report on CS/HBs 33-C &
43-C
On motion by Rep. Cosgrove, the House took up the following Report of
the Conference Committee on CS/HBs 33-C & 43-C:

89

The Honorable Pat Thomas
President of the Senate

The Honorable Bolley L. Johnson
Speaker, House of Representatives
Sirs:
The Conference Committee on the disagreeing votes of the two Houses
on Committee Substitute for House Bills 33-C and 43-C, being:
A bill to be entitled An act relating to insurance;
having met, and after full and free conference, do recommend to their
respective Houses as follows:
1. That the Senate recede from its Amendment #1.
2. That the House and Senate adopt the Conference Committee
Amendment, attached hereto, and by reference made a part of this report.
3. That the House and the Senate pass Committee Substitute for
House Bills 33-C and 43-C as amended by the Conference Committee
Amendment.

Betty Holzendorf, Vice-Chairman
John Grant
Ken Jenne
John McKay
Managers on the part of the
Senate

John Cosgrove, Chairman
Stan Bainter
Steven A. Geller
Debbie Wasserman Schultz
Managers on the part of the
House of Representatives

Summary of Conference Committee action:
Section 1. Requires the Department of Insurance to create an outreach
program to attract new insurers to the state.
Section 2. Creates a 3rd degree felony for knowing, willful, intentional
filing of materially false financial statements.
Section 3. Provides civil immunity for providing information to the
department on the financial condition of an insurer.
Section 4. (1) Increases frequency of examination of newly licensed
insurers while allowing for less frequent examinations of older insurers that
have demonstrated sufficient compliance; (2) authorizes the department
to contract with an independent examiner upon agreement with an insurer.
Section 5. Increases initial surplus requirements to $5 million for
property and casualty insurers.
Section 6. Increases surplus requirement that must be maintained after
licensure to $4 million for property and casualty insurers, while phasing-in
this requirement over ten years for existing insurers.
Section 7. (1) Requires property and casualty insurers to annually file an
actuarial opinion of reserves. (2) Requiring exceptions or waiver from
department accounting requirements to be in writing for an authorized
representative of the department.
Section 8. Requires property and casualty insurers to report unusual
premium growth rates.
Section 9. Adds restrictions to the use of letters of credit as approved
reinsurance and for approving underwriting members of a U.S. insurance
exchange.
Section 10. Removes the department's authority to grant exceptions to
junk bond investment limits.
Section 11. Expands the application of the requirements of the
Producer-Controlled Insurer Act.
Section 12. Increases the minimum surplus requirements for surplus
lines insurers to $15 million, while providing a 10-year phase-in schedule
for currently eligible surplus lines insurers.
Section 13. (1) Requires discounts for residential property insurance for
properties on which fixtures actuarially demonstrated to reduce the
amount of loss in a windstorm have been installed; (2) Allows rates to
reflect the quality of enforcement of building codes; (3) Authorizes the
department to adopt a standard uniform hurricane exposure model for
reviewing rate filings; (4) Requires insurers to use 9-digit zip code rating
territories.
Section 14. (1) Amortizes assessments against insurers for funding
deficits in the Windstorm Pool, the Florida Property and Casualty Joint
Underwriting Association (FPCJUA), and the Residential Property and

November 5, 1993

JOURNAL OF THE HOUSE OF REPRESENTATIVES

90

Casualty Joint Underwriting Association, by limiting annual assessments
and allowing for bonding. (2) Activates coverage in the FPCJUA for
condominium associations and other commercial residential structures; (3)
Authorizes department to activate coverage in the FPCJUA based on
certain findings; (4) specifies rating criteria in the FPCJUA and RPCJUA,
including assessment credits for new insurers.
Section 15. Increase notice requirements for cancellation or non-renewal
of a residential property insurance policy from 45 to 90 days.
Section 16. Authorizes the department to disapprove deductible
provisions that are unclear or ambiguous.
Section 17. Requires insurers to offer replacement cost and law and
ordinance coverage on all home owners policies.
Section 18. Authorizes department to adopt rules establishing pools of
qualified adjusters.
Section 19. Prohibits insurers from cancelling or non-renewing, in any
one year, more than 5 percent of its personal lines residential property
insurance policies or more than 10 percent in any county. Provides grounds
for exemptions.
Section 20. Authorizes department to require insurers to report
geographic concentration of risks and to develop plans for avoiding over-
concentration of risk; authorizes department to order insurers to re-submit
plans to respond to department findings.
Section 21. Authorizes department to establish mediation procedures for
resolution of disputed property insurance claims.
Section 22. Prohibits premium financing in excess of a specified
percentage of the premium; prohibits premium financing of certain policies
and products.
Section 23. Allows an insurer to cancel a policy upon receipt of a
cancellation notice by a premium finance company, whether or not the
premium finance company has complied with notice requirements, but
allowing the insured to bring suit against the premium finance company
and to collect attorney's fees.
Section 24. Requires the department to adopt rules related to insurance
holding companies that conform to specified provisions in the model rules
adopted by the National Association of Insurance Commissioners.
Section 25. Requires the department to study the appropriateness of
classifying condominium association policies as commercial policies.
Sections 26 and 27. Technical conforming amendments.
Section 28. Effective date (upon becoming law, except as otherwise
provided).
Conference Committee Amendment 1-On page 5, line 25, strike
everything after the enacting clause and insert:
Section 1. Subsection (7) is added to section 624.307, Florida Statutes,
to read:
624.307 General powers; duties.-
(7) The department shall, within existing resources, develop and
implement an outreach program for the purpose of encouraging the entry
of additional insurers into the Florida market.
Section 2. Effective January 1, 1994, section 624.3101, Florida Statutes,
is created to read:
624.3101 False or misleading financial statements or supporting
documents; penalty.-Any person who willfully files with the
department, or who willfully signs for filing with the department, a
materially false or materially misleading financial statement or
document in support thereof required by law or rule, with intent to
deceive and with knowledge that the statement or document is materially
false or materially misleading, commits a felony of the third degree,
punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
Section 3. Section 624.3102, Florida Statutes, is created to read:
624.3102 Immunity from civil liability for providing department with
information about condition of insurer.-A person, other than a person
filing a required report or other required information, who provides the
department with information about the financial condition of an insurer
is immune from civil liability arising out of the provision of the

information unless the person acted with knowledge that the information
was false or with reckless disregard for the truth or falsity of the
information.

November 5, 1993

Section 4. Paragraph (a) of subsection (2) of section 624.316, Florida
Statutes, is amended, and paragraphs (e) and (f) are added to said
subsection, to read:
624.316 Examination of insurers.-
(2)(a) Except as provided in paragraph (f), the department may
examine each insurer as often as may be warranted for the protection of
the policyholders and in the public interest, and shall examine each
domestic insurer not less frequently than once every 3 years. The
examination shall cover the preceding 3 fiscal years of the insurer and shall
be commenced within 12 months after the end of the most recent fiscal year
being covered by the examination. The examination may cover any period
of the insurer's operations since the last previous examination. The
examination may include examination of events subsequent to the end of
the most recent fiscal year and the events of any prior period that affect
the present financial condition of the insurer. In lieu of making its own
examination, the department may accept an independent certified public
accountant's audit report prepared on a statutory basis consistent with the
Florida Insurance Code on that specific company. The department may not
accept the report in lieu of the requirement imposed by paragraph (1)(b).
When an examination is conducted by the department for the sole purpose
of examining the 3 preceding fiscal years of the insurer within 12 months
after the opinion date of an independent certified public accountant's
audit report prepared on a statutory basis on that specific company
consistent with the Florida Insurance Code, the cost of the examination as
charged to the insurer pursuant to s. 624.320 shall be reduced by the cost
to the insurer of the independent certified public accountant's audit
reports. Requests for the reduction in cost of examination must be
submitted to the department in writing no later than 90 days after the
conclusion of the examination and shall include sufficient documentation
to support the charges incurred for the statutory audit performed by the
independent certified public accountant.
(e) The department shall adopt rules providing that, upon agreement
between the department and the insurer, an examination under this
section may be conducted by independent certified public accountants,
actuaries meeting criteria specified by rule, and reinsurance specialists
meeting criteria specified by rule. The rules shall provide:
1. That the agreement of the insurer is not required if the department
reasonably suspects criminal misconduct on the part of the insurer.
2. That the department shall provide the insurer with a list of three
firms acceptable to the department, and that the insurer shall select the
firm to conduct the examination from the list provided by the
department.
3. That the insurer being examined must make payment for the
examination directly to the firm performing the examination in
accordance with the rates and terms agreed to by the department, the
insurer, and the firm performing the examination.
4. That if the examination is conducted without the consent of the
insurer, the insurer must pay all reasonable charges of the examining firm
if the examination finds impairment, insolvency, or criminal misconduct
on the part of the insurer.
(f)l.a. An examination under this section must be conducted at least
once every year with respect to a domestic insurer that has continuously
held a certificate of authority for less than 3 years. The examination must
cover the preceding fiscal year or the period since the last examination
of the insurer. The department may limit the scope of the examination
if the insurer has demonstrated sufficient compliance as determined
under subparagraph 3.
b. The department may not accept an independent certified public
accountant's audit report in lieu of an examination required by this
subparagraph.
c. An insurer may not be required to pay more than $25,000 to cover
the costs of any one examination under this subparagraph.
2. An examination under this section must be conducted not less
frequently than once every 5 years with respect to an insurer that has
continuously held a certificate of authority, without a change in
ownership subject to s. 624.4245 or s. 628.461, for more than 15 years and
has demonstrated sufficient compliance as determined under
subparagraph 3. The examination must cover the preceding 5 fiscal years
of the insurer or the period since the last examination of the insurer. This

subparagraph does not limit the ability of the department to conduct
more frequent examinations.

JOURNAL OF THE HOUSE OF REPRESENTATIVES

JOURNAL OF THE HOUSE OF REPRESENTATIVES

3. The department must, by rule, adopt procedures and criteria for
determining if an insurer has demonstrated sufficient compliance with
this code and cooperation with the department. The rules must include
consideration of such factors as financial strength, timeliness, consumer
service, economic and community contributions and support,
responsiveness to department requests, and any other relevant factors.
The department must annually publish and disseminate a listing of those
insurers found to demonstrate sufficient compliance under the rules,
including special recognition for community contributions and support.
Section 5. Subsection (1) of section 624.407, Florida Statutes, is
amended to read:
624.407 Capital funds required; new insurers.-
(1) To receive authority to transact any one kind or combinations of
kinds of insurance, as defined in part V of this chapter, an insurer hereafter
applying for its original certificate of authority in this state after the
effective date of this section shall possess surplus as to policyholders not
less than the greater of:
(a) $5,000,000 for a property and casualty insurer, or $2,500,000 for
any other insurer;
(b) For life insurers, 4 percent of the insurer's total liabilities;
(c) For life and health insurers, 4 percent of the insurer's total
liabilities, plus 6 percent of the insurer's liabilities relative to health
insurance; or
(d) For all insurers other than life insurers and life and health insurers,
10 percent of the insurer's total liabilities;
however, no insurer shall be required under this subsection to have surplus
as to policyholders greater than $100 million.
Section 6. Section 624.408, Florida Statutes, is amended to read:
624.408 Surplus as to policyholders required; new and existing
insurers.-
(1)(a) To maintain a certificate of authority to transact any one kind
or combinations of kinds of insurance, as defined in part V of this chapter,
an insurer in this state that applied for ito certificate of authority on or
after tho effective daeo of this act shall at all times maintain surplus as to
policyholders not less than the greater of:
1.4- Except as provided in subparagraph 5. and paragraph (b),
$1,500,000;
2.{b} For life insurers, 4 percent of the insurer's total liabilities;
3.4e) For life and health insurers, 4 percent of the insurer's total
liabilities plus 6 percent of the insurer's liabilities relative to health
insurance; or
4.k For all insurers other than life insurers and life and health
insurers, 10 percent of the insurer's total liabilities.
5. For property and casualty insurers, $4,000,000.
(b) For any property and casualty insurer holding a certificate of
authority on December 1, 1993, the following amounts apply instead of
the $4,000,000 required by subparagraph (a)5.:
1. On December 31, 1994, and until December 30, 1995, $1,650,000.
2. On December 31, 1995, and until December 30, 1996, $1,800,000.
3. On December 31, 1996, and until December 30, 1997, $1,950,000.
4. On December 31, 1997, and until December 30, 1998, $2,100,000.
5. On December 31, 1998, and until December 30, 1999, $2,250,000.
6. On December 31, 1999, and until December 30, 2000, $2,500,000.
7. On December 31, 2000, and until December 30, 2001, $2,750,000.
8. On December 31, 2001, and until December 30, 2002, $3,000,000.
9. On December 31, 2002, and until December 30, 2003, $3,250,000.
10. On December 31, 2003, and until December 30, 2004, $3,600,000.

11.

On December 31, 2004, and thereafter, $4,000,000.

k1) or me 1 inouroro, percent of to inourcro totaliaDiitica;
(e For life and 1 health insurers, 3 poroent of the inouror'o total
liabilitieo pluo 2 poreont of tho inouror'o liabilitioo relative to health
2ino ante; or
(d)-For all inouroro other than life inouroro and lif& and health inouroro,
10 p oront of tho inouror'o total liability o.
(3) To maintain a eortifieato of authority to tranoaet any ono kind or
combination of kind of inouranco, aso defined in part V of thiao chapter,
an inour-r in thio stato that applied for its certificate of authority prior to
th1e effective dateo i of thi a shall maintain on Docomb.or 31, 1990, and until
Doombor 31, 1991, ourpluo ao to policyholdoro not loo than the groator of:

(b)For lif inouror, 3.3 poront of tho inofsuror'o total liabilitioo;fi
(e) For life and health inouroro, 3.3 poroent of tho inourr'o total
liabilitieo pluo 4 peroont of the inouror'o liabilitioo relative to health
inesirneel -e
(d)For all inouroro other than life inouroro and lifo and health inouroro,
10 poront of tho inoureor'o total lihabilitieo.
"(4) To maintain a ortifiato of authority to transact any one kind or
combinationo of kind of inouranoo, ao dofinod in part V of thio shaptor,
an inouror in thio otato that applied for ito cortificato of authority prior to
tho offootivo date of thio act, ohall maintain on Docombor 31, 1991, and
until Doombor 31, 1992, aurpluo ao to policyholdoro not leos than thoe

4a4 e 3 192 suIas ass tII V--.7IVI U VVVWI b U ii -LVV
greater- of

(b) For lifo inouroro, 3.6 print of tho inouror' a total liabilitioo;l
oe)a or lifo and health inouroro, 3.6 poroent of tho inouror'o total
liabilitio No pluor5 peant of tho inouror'o liabilitioo relative to health
uaneeo; or

combination of kindo of inouranco, ao dofinod in part V of thio chapter,
an inouror in thio otato that applied for ito eertifi.ate of authority prior to
thie effective atemn of thisn t, hall maintain on DPecmbtieor 31,, 12, a
thereafter, ourpluo a to po.lioyholdro not loo than the greater of:

(b)For life i pnouroro, poront of the inour or'o total liabiliti o;
(e) For life and health inouroro, 4 percent of the inouror'o total
liabilitioo pluo 6 poroont of the inourer'o liabilitico relative to health
insourao; or-
(d) For all inouroro other than life inouroro and lif and health inouroro,
10 percent of tho inouror'o total liabilitioo.
(2)4f4 For purposes of this section, liabilities shall not include
liabilities required under s. 625.041(4). For purposes of computing
minimum surplus as to policyholders pursuant to s. 625.305(1), liabilities
shall include liabilities required under s. 625.041(4).
(3)k74 No insurer shall be required under this section to have surplus
as to policyholders greater than $100 million.
Section 7. Subsection (1) and paragraph (e) of subsection (8) of section

insurer or, if a reciprocal insurer, by the oath of the attorney in fact or its

(2) To maintain a cortificato of authority to tranoact any one kind or
combinationo of kind of inouranco, ao dofinod in part V of thiso haptor,
"an inouror in thio otato that applied for its c.rtificate of authority prior to
the cffootivo date of thio act hall maintain on Docombor 31, 1989, and until
Docombor .31, 1990, ourpluo ao to policyholdoro not leoo than the greater of:

November 5, 1993

91

	Title Page
	Members of the House of Repres...
	November 1993
	Index

MILLISECOND	CLASS.METHOD	MESSAGE
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0	sobekcm_page_globals.constructor	Application State validated or built
0	sobekcm_database.verify_item_lookup_object
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0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.display_item	Retrieving item or group information
0	sobekcm_page_globals.get_entire_collection_hierarchy	Retrieving hierarchy information
0	sobekcm_assistant.get_entire_collection_hierarchy
0	cached_data_manager.retrieve_item_aggregation
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0	item_aggregation_builder.get_item_aggregation	Found 'all' item aggregation in cache
0	system.web.ui.page.page_load (ufdc.page_load)
0	sobekcm_page_globals.constructor.on_page_load
0	html_echo_mainwriter.add_style_references	Adding style references to HTML
0	html_echo_mainwriter.add_text_to_page	Reading the text from the file and echoing back to the output stream
187	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file