The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Rules
BILL: CS/CS/CS/SB 1066
INTRODUCER: Rules Committee; Judiciary Committee; Banking and Insurance Committee; and Senator
Burton
SUBJECT: Consumer Protection
DATE: February 27, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Thomas Knudson BI Fav/CS
2. Collazo Cibula JU Fav/CS
3. Thomas Twogood RC Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/CS/SB 1066 amends various statutes in the area of consumer protection. Specifically, the
bill:
 Requires third party settlement organizations that conduct transactions involving a payee in
Florida to create a mechanism for the sender of the payment to identify whether a transaction
is for goods and services or personal transactions.
 Creates a right to cancel a contract with a contractor during a declaration of a state of
emergency to replace or repair a roof of a residential property.
 Expands the definition of “depository institution” for purposes of the Florida Commercial
Financing Disclosure Law.
 Provides that any certified public accountant who prepares the mandatory annual audit for an
insurer must be licensed in Florida and have completed at least 4 hours of insurance-related
continuing education within each 2-year continuing education cycle.
 Provides that each public adjuster contract relating to a property and casualty claim must
contain the license number of the public adjusting firm.
 Provides that beginning January 1, 2025, the written notice of insurance policy changes
required by s. 627.43141, F.S., must comply with certain formatting requirements.
 Provides that the disclosure requirements of contracts for short-term health insurance must be
in writing and signed by the purchaser at the time of purchase; the disclosures must include
the duration, any essential benefit not included, content of coverage, and exclusions within
the contract.
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 Provides that a claim from a condominium unit owner resulting from a loss assessment may
not occur later than 3 years after the date of loss and must be made the later of one year after
the date of loss or 90 days after the date on which the condominium association votes to levy
the assessment.
 Amends the definition of “fireworks;” and
 Adopts the 2018 edition of the National Fire Protection Association Code for Fireworks
Display.
The bill does not appear to have a fiscal impact on state or local government.
The bill has an effective date of July 1, 2024.
II. Present Situation:
Form 1099-K Reporting Requirement
Section 6050W of the Internal Revenue Code requires certain entities to file a return each year
providing information about payments made by credit card or third party merchants.1 The return
is Form 1099-K, and it must be filed for each calendar year on or before the last day of February
of the year following the transactions.2
Reportable transactions include any transaction where the payment method is a payment card
(credit card, debit card, or similar) or a third party payment system (like PayPal, Venmo, or
Apple Pay). The return is filed by the payment settlement entity (e.g., a bank, credit card
company, or payment platform like PayPal) and a copy is provided to dealers who have payment
card transactions (credit card sales) of any amount, or who have third-party payment transactions
(e.g., PayPal) in excess of $20,000 and comprising more than 200 transactions.3 These sales
should be included in the payee’s gross income on their tax returns for the year.
Some states require payment settlement entities to submit a copy of any Form 1099-K related to
sales in that state or for residents of that state, if the IRS already requires them to file Form 1099-
K. Examples include Alabama,4 Tennessee,5 North Carolina,6 and New York.7 Since 2020,
entities required to file Form 1099-K with the federal government must also file a copy with the
1
26 U.S.C. s. 6050W.
2
Internal Revenue Service (IRS), About Form 1099-K, Payment Card and Third Party Network Transactions,
https://www.irs.gov/forms-pubs/about-form-1099-k (last visited January 29, 2024); IRS, Form 1099-K frequently asked
questions: Reporting, https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-reporting (last visited January
29, 2024).
3
IRS, Understanding your Form 1099-K, https://www.irs.gov/businesses/understanding-your-form-1099-k (last visited
January 29, 2024).
4
Alabama Department of Revenue, New 1099-K Filing Requirement, https://www.revenue.alabama.gov/new-1099-k-filing-
requirement/ (last visited January 29, 2024).
5
Tennessee Department of Revenue, Sales and Use Tax Notice (Jan. 2016), available at https://www.tn.gov/content/dam/tn/
revenue/documents/notices/sales/sales16-01.pdf.
6
North Carolina Department of Revenue, Guidance on Information Reporting, https://www.ncdor.gov/file-pay/guidance-
information-reporting#payment-settlement-entity-(1099k) (last visited January 29, 2024).
7
New York State Department of Taxation and Finance, Reporting Requirements, https://www.tax.ny.gov/bus/multi/
reporting_requiremts.htm (last visited January 29, 2024).
BILL: CS/CS/CS/SB 1066 Page 3
Florida Department of Revenue electronically within 30 days of filing the federal return.8 The
copy can be either the exact information filed on the full federal return, or a copy of the
information limited to participating payees with addresses in Florida.9
Prohibited Property Insurance Practices by Contractors
Contractors are prohibited from making written or electronic communications that encourage or
induce a consumer to contact a contractor or public adjuster for the purpose of making a property
insurance claim for roof damage, unless such solicitation provides notice in a prescribed format
that:
 The consumer is responsible for the payment of any deductible.
 It is insurance fraud punishable as a third-degree felony for a contractor to knowingly or
willfully, and with intent to injure, defraud, or deceive, pay, waive, or rebate all or part of an
insurance deductible applicable to payment to the contractor for repairs to a property covered
by a property insurance policy.
 It is insurance fraud punishable as a third-degree felony to file intentionally an insurance
claim containing false, fraudulent, or misleading information.10
Contractors, and persons acting on behalf of contractors, are prohibited from engaging in the
following practices:
 Offering the residential property owner consideration to perform a roof inspection or file an
insurance claim.
 Offering or receiving consideration for referrals when property insurance proceeds are
payable.
 Interpreting policy provisions or advising an insured regarding coverages or duties under the
insured’s property insurance policy or adjusting a property insurance claim on behalf of the
insured, unless the contractor holds a license as a public adjuster.
 Providing an authorization agreement to the insured without providing a good faith
estimate.11
The above acts are subject to discipline by the Department of Business and Professional
Regulation and a $10,000 fine per violation.12 State law provides that the residential property
owner may void the contract with the contractor within 10 days of its execution, if the contractor
fails to provide notice to the residential property owner of these prohibited practices.13
Florida Commercial Financing Disclosure Law
The Florida Commercial Financing Disclosure Law (Law) requires a provider that consummates
a commercial financing transaction of $500,000 or less to give the business certain written
disclosures regarding the total cost of the transaction, and the manner, frequency, and amount of
8
Section 212.134, F.S.
9
Section 212.134(1), F.S.
10
Section 489.147(2), F.S.
11
Id.
12
Section 489.147(3), F.S.
13
Section 489.147(5), F.S.
BILL: CS/CS/CS/SB 1066 Page 4
each payment.14 The Law provides that a provider’s characterization of an accounts receivable
purchase transaction as a purchase is conclusive that the transaction is not a loan or a transaction
for the use, forbearance, or detention of money.15 “Provider” means:
a person who consummates more than five commercial financing transactions with
a business located in this state in any calendar year. The term also includes a person
who enters into a written agreement with a depository institution to arrange a
commercial financing transaction between the depository institution and a business
via an online lending platform administered by the person. The fact that a provider
extends a specific offer for a commercial financing transaction on behalf of a
depository institution may not be construed to mean that the provider engaged in
lending or financing or originated that loan or financing.16
“Depository institution” means a Florida state-chartered bank, savings bank, credit union, or trust
company, or a federal savings or thrift association, bank, credit union, savings bank, or thrift.17
The Law does not apply to:
 A provider that is a federally insured depository institution, or an affiliate or holding
company of such institution; or a subsidiary or service corporation that is owned and
controlled by a federally insured depository institution or under common ownership with
such institution.
 A provider that is a lender regulated under the Farm Credit Act of 1971, 12 U.S.C. ss. 2001
et seq.
 A commercial financing product transaction that is:
o Secured by real property;
o A lease; or
o A purchase money obligation that is incurred as all or part of the price of the collateral or
for value given to enable the business to acquire rights in or the use of the collateral if the
value is in fact so used.
 A commercial financing transaction in which the recipient is a motor vehicle dealer or an
affiliate of such a dealer, or a vehicle rental company or an affiliate of such a company,
pursuant to a commercial loan or commercial open-end credit plan of at least $50,000; or a
commercial financing transaction offered by a person in connection with the sale or lease of
products or services that such person manufactures, licenses, or distributes, or whose parent
company or any of its directly or indirectly owned and controlled subsidiaries manufactures,
licenses, or distributes.
 A provider that is licensed as a money transmitter under chapter 560, F.S., or licensed as a
money transmitter by any other state, district, territory, or commonwealth of the U.S.
 A provider that consummates no more than five commercial financing transactions in this
state in a 12-month period.
14
Section 559.9613, F.S.; see also s. 559.9612(7), F.S. (providing that the Law does not apply to commercial financing
transactions of more than $500,000).
15
Section 559.9611(1), F.S.
16
Section 559.9611(10), F.S.
17
Section 559.9611(9), F.S.
BILL: CS/CS/CS/SB 1066 Page 5
 A commercial financing transaction of more than $500,000.18
Disclosures
The provider must disclose in writing the following at or before consummation of a commercial
financing product transaction:
 The total amount of funds provided to the business under the terms of the commercial
financing transaction agreement.
 The total amount of funds disbursed to the business under the terms of the commercial
financing transaction agreement, if less than the total amount of funds provided, as a result of
any fees deducted or withheld at disbursement and any amount paid to a third party on behalf
of the business.
 The total amount to be paid to the provider pursuant to terms of the commercial financing
transaction agreement.
 The total dollar cost of the commercial financing transaction under the terms of the
agreement, derived by subtracting the total amount of funds provided from the total of
payments.
 The manner, frequency, and amount of each payment.
 A statement of whether there are any costs or discounts associated with prepayment of the
commercial financing transaction including a reference to the provision in the agreement that
creates the contractual rights of the parties related to prepayment.19
Prohibited Acts
The Law prohibits a broker from engaging in any of the following acts:
 Assessing, collecting, or soliciting an advance fee from a business to provide services to a
broker. However, this prohibition would not preclude a broker from soliciting a business to
pay for, or preclude a business from paying for, actual services necessary to apply for
commercial financial products, such as a credit check or an appraisal of security, if certain
conditions are met.
 Making or using any false or misleading representation or omitting any material fact in the
offer or sale of the services of a broker, or engaging in any act that would operate as fraud or
deception upon any person in connection with the offer or sale of the services of the broker,
notwithstanding the absence of reliance by the business.
 Making or using any false or deceptive representation in its business dealings.
 Offering the services of a broker by any advertisement without disclosing the actual address
and telephone number of the business of the broker.20
Enforcement
The Law provides that violations are punishable by a fine of $500 per incident, not to exceed
$20,000 for all aggregated violations arising from the use of the transaction documentation or
materials found to be in violation.21 Any person who violates any provision of the Law after
receiving written notice of a prior violation from the Attorney General may be subject to a fine
18
Section 559.9612, F.S.
19
Section 559.9613(2), F.S.
20
Section 559.9614, F.S.
21
Section 559.9615(2)(a), F.S.
BILL: CS/CS/CS/SB 1066 Page 6
of $1,000 per incident, not to exceed $50,000 for all aggregated violations arising from the use of
the transaction documentation or materials found to be in violation.22 The Attorney General has
exclusive authority to impose fines for noncompliance with the disclosure requirements and
prohibited acts.23
Insurer Reporting of Property Insurance Data
All insurers with a Florida certificate of authority to transact insurance business must file
quarterly and annual reports with the Office of Insurance Regulation (OIR) containing various
financial data, including audited financial statements, actuarial opinions, and certain claims
dates.24 Each year, insurers must file an annual statement covering the preceding calendar year
on or before March 1. Quarterly statements covering each period ending on March 31, June 30,
and September 30 must be filed within 45 days after each such date.25
In addition to each authorized insurer having to file with the OIR statements of its financial
condition, transactions, and affairs, each authorized insurer must also hire a certified public
accountant to prepare an audit.26 The board of the insurer is required to establish an audit
committee of three or more directors of the insurer or an affiliated company. The audit
committee is responsible for discussing audit findings and interacting with the certified public
accountant regarding his or her findings. The audit committee must be comprised solely of
members who are free from any relationship that, in the opinion of its board of directors, would
interfere with the exercise of independent judgment as a committee member. The audit
committee must report to the board any findings of adverse financial conditions or significant