2016 Legislative Report

Transcription

1 2016 Legislative Report Do not go where the path may lead, go instead where there is no path and leave a trail. -Ralph Waldo Emerson Alejandro Alex M. Sanchez President & Chief Executive Officer Anthony F. DiMarco Executive Vice President/ Director of Government Affairs Kenneth D. Pratt Senior Vice President of Government Affairs Kimberly A. Siomkos Vice President of Government Affairs Alex Sanchez Anthony DiMarco Kenneth Pratt Kim Siomkos Pictured on the cover: Senate President Andy Gardiner and Speaker of the House Steve Crisafulli

2 Dear Florida Bankers: Session 2016, like all others, proved consistent in its inconsistency. This year was a test year for legislation passed in 2015 to start session in January rather than the standard March. Naturally, it was chaos. Everything was sped up, starting in January meant fewer committee weeks which meant fewer committee meetings and thus fewer bills being heard. Trains (legislative vehicles) were in high demand and there were few to go around. This, all on the top of Session 2015, which seemed to never end thanks to redistricting and special sessions, leaving staffers, legislators and lobbyists with a sense of fatigue from the get go. While some trains never left the station, others seemed to be running ahead of schedule. Several of both Senate President Gardner s and House Speaker Crisafulli s priorities passed the first week. These included the Water Bill and Financial Literacy for the Developmentally Disabled. Despite some squabbling back and forth the two chambers were able to pass an $82.3 billion dollar budget focused on important areas like Florida s education system and the Everglades. This session roughly 1880 bills were filed and only 275 passed. Of these 275 bills four were major FBA priorities, listed below. In fact, each of these has already been signed into law by the Governor as well. House Bill 145: Financial Transactions (HELOCs) Senate Bill 494: Digital Assets Senate Bill 1104: Service of Process House Bill 1233: Federal Home Loan Bank Thus despite the occasional (and expected) fight over a few bad amendments and bills, the 2016 Legislative Session was very successful for the Florida Banking Industry. Session 2016 came to a close free of legislation dealing with public deposits and the harmful condo/ HOA bills typical of an election year. These great successes are in no small part due to each of you, our members. By taking the time to answer Calls to Action, reviewing legislation, and forming lasting relationships with your representatives you do a great deal in moving our efforts forward. These seemingly small acts have a major impact and certainly make our lives easier during session. Special thanks goes to: Mike Fields, Bank of America; Tom Pennekamp, SunTrust Bank; Scott Jenkins, Wells Fargo; Rick Mahler, JP Morgan Chase; Virginia Townes, Russ Hale, Carrie Ann Wozniak and Linda Charity, Akerman LLP; Jim Daughton and Greg Black, Metz Husband & Daughton, PA (representing Regions Bank); Chris Schoonover and Nick Iarossi, Capital City Consulting (Representing CitiBank, N.A.); Jeff Klein, BB&T Corporation; Jeff Rabren, Regions Financial Corporation; Dan Donohoe, Comerica; Alan West, CitiBank, N.A.; Robert Kottler, IBERIABANK; Tom Ruebel, Fifth Third Bank; Tom Lamb, PNC; Rebecca Frisch, TD Bank and Jon Johnson, Travis Blanton, Darrick McGhee, Johnson & Blanton (representing Bank of America). Sincerely, Alex Sanchez Anthony DiMarco Kenneth Pratt Kim Siomkos President & CEO EVP Government Affairs Senior VP GR/ Director VP Government Affairs Trust Leg Affairs 2

3 My Fellow Colleagues: As Chairman of the FBA I have had the opportunity to be fully submerged into the political arena both in Washington and Tallahassee. While I have always taken interest in the political process and recognized the importance of voting, it was not until this year as Chairman that I fully understood just how much elections matter. Many of you joined me these last 12 months in various trips to Washington, Tallahassee and other cities around the state to meet with elected officials and regulators alike, tasked with a single mission- regulatory relief. And despite hundreds of meetings, phone calls, and thousands of physical steps walking the halls we watched Congress (particularly the Senate) pass up chance after chance to pass meaningful reform. Instead, Washington chose to use our industry as the pay for for the Highway Bill, something completely unrelated to our business. With Republican majorities in both chambers, weren t these were supposed to be our friends? While this may seem like the time to give up, we simply cannot. It is now more than ever we must remain a single voice. As an industry we must continue to answer the call to be politically engaged. We must remain united and come election time, we must support individuals who recognize the value and necessity of what we do as an industry. As an association we have much to be proud of. On the federal level, our delegation displayed mass support on all the regulatory relief bills, and on many of them, Florida put forth the most co-sponsorships. And on the state level, Session 2016 was a major success. The FBA successfully navigated our entire list of priority bills through the process and have now been signed by the Governor, something few others were able to accomplish this year. We successfully fought off several pieces of detrimental legislation as well. But there remains much to be done. We must make our good better and our better best, and that means doubling our efforts fine tuning our message, and helping to support a supportive audience. Walking the halls as a representative of one of our nation s largest institutions advocating on behalf of our smaller institutions sent a powerful message. Instead of giving up, imagine the impact we can have when the smallest institutions speak on behalf of the largest and vice versa. Washington wins when we present a bifurcated message. These sentiments hold particularly true as we get closer and closer to the 2016 election and certain candidates attempt to gain traction by discrediting the good we do in communities around this country. We must protect our industry and the people who stand behind it. While I am beyond grateful for the many hours you have spent away from your bank to help see this mission through, it pains me to ask you to offer even more. Please stay engaged, and involved in the political process in whatever way you can. That can mean join us up in Washington and Tallahassee, or simply inviting an elected official to come tour your bank. Whatever you choose, these efforts may seem rather minor, but they have a major effect on our political prowess. Thanks again. Sincerely, Mark Bensabat Chairman, Florida Bankers Association 3

4 TABLE OF CONTENTS Government Relations Council 5 Trust, Asset Mgmt. & Private Banking Legislative Committee 7 MAJOR LEGISLATION Financial Transactions (145/ 260) 8 Digital Assets (747/494) 9 Service of Process (897/1104) 10 Federal Home Loan Bank (1233/1490) 10 Individuals with Disabilities (7003/7010) 11 Bad Faith Assertions of Patent Infringement (1181/1298) 12 BANKING Consumer Credit (717/626) 13 Fraudulent Activities Associated with the Payments System (761/912) 13 Mergers & Acquisitions Brokers (817/286) 14 Consumer Debt Collection (713/562) 15 PROPERTY INSURANCE Sinkhole Insurance (1327/1274) 17 Property Insurance Appraisers & Appraisal Umpires (79/336) 17 Assignment or Transfer of Property Insurance Rights (1097/596) 17 Prohibited Insurance Practices (671/1248) 18 Transportation Network Companies (509/1118) 18 TAXATION & ECONOMIC DEVELOPMENT 2016 Tax Package (7099) 20 WILLS AND TRUST Family Trust Companies (17/80) 21 Estates (393/540) 21 Limited Purpose International Trust Co. Representatives (1383/1106) 21 REAL PROPERTY Judgments (503/1042) 23 Unclaimed Property (783/970) 23 Unclaimed Property (1041/966) 24 Housing Discrimination (339/7008) 25 ENVIRONMENTAL PROGRAMS Contaminated Sites (697/100) 26 Peril of Flood (929/584) 26 TECHNOLOGY & INFORMATION SECURITY Public Records (273/390) 27 Alarm Systems (535/704) 28 Information Technology Security (1033/7050/1037/624) 28 OTHER IMPACTFUL LEGISLATION Nonresident Plaintiffs in Civil Actions (4029/396) 30 Medical Cannabis (307/460) 30 State Investments (4049/7028) 31 Scrutinized Companies (527/86) 32 Department of Transportation (7061/1392) 33 Department of Financial Services (651/992) 33 ** Odd numbered bills are House Bills and even numbered bills are Senate Bills** 4

5 GOVERNMENT RELATIONS COUNCIL Mr. Bud Stalnaker Centennial Bank Tampa, FL Mr. Mark Bensabat (Past Chair) JPMorgan Chase Orlando, FL Mr. John Tranter (Past Chair) CenterState Banks, Inc. Stuart, FL Mr. Greg Anderson EverBank Jacksonville, FL Mr. Lewis Brenner 1 st Manatee Bank Parrish, FL Mr. Joe Caballero GulfShore Bank Tampa, FL Mr. Michael Carlson BBVA Compass Birmingham, AL Mr. Ray Colado Commerce National Bank & Trust Winter Park, FL Mr. Mike Fields Bank of America Tallahassee, FL Mr. John Fisher First American Bank Naples, FL Ms. Veronica Flores First National Bank of South Miami South Miami, FL Mr. Paul Garrigues CBC National Bank Fernandina Beach, FL Mr. Frank Hall Summit Bank, N.A. Panama City, FL Mr. Dom DiMaio Synovus Bank St. Petersburg, FL Mr. Dwight Hill Sabadell United Bank, N.A. Miami, FL Mr. Javier Holtz Marquis Bank Coral Gables, FL Mr. Scott Jenkins Wells Fargo Bank, N.A. Tallahassee, FL Mr. David Key Patriot Bank Trinity, FL Mr. Jeff Klein BB&T Corporation 5 Charlotte, NC Mr. Robert Kottler IBERIABANK New Orleans, LA Mr. Thomas Lamb PNC Bank Pittsburgh, PA Mr. Marshall Martin City National Bank of Florida Miami, FL Mr. Angel Medina Gibraltar Private Bank & Trust Company Miami, FL Ms. Jacquie Moore The Bank of Tampa Tampa, FL Ms. Brenda O Neil Preferred Community Bank Fort Myers, FL Mr. Mark Parthemer Bessemer Trust Company Palm Beach, FL Mr. Tom Pennekamp SunTrust Banks, Inc. Tallahassee, FL Mr. Al Peraza Mercantil Commercebank NA Coral Gables, FL

6 Mr. Jeff Rabren Regions Financial Corp Birmingham, AL Mr. Bill Taylor Community Bank of the South Merritt Island, FL Mr. Fred Reinhardt Brickell Bank Miami, FL Mr. Gary Tice First Florida Integrity Bank Naples, FL Mr. Hal Roberts Harbor Community Bank Fort Pierce, FL Mr. Jorge Triay Intercredit Bank, N.A. Miami, FL Mr. Frank Robleto BAC Florida Bank Coral Gables, FL Mr. Israel Velasco Popular Community Bank Miami Lakes, FL Mr. Tom Ruebel Fifth Third Bank Columbus, OH Mr. Alan West Citicorp Trust, N.A. Atlanta, GA Mr. Jorge Salas Banesco USA Coral Gables, FL Mr. David Wilson Renasant Bank Gainesville, FL Mr. Eric Schreck TrustCo Bank Longwood, FL Mr. Cassio Segura Banco do Brasil Americas Miami, FL Mr. Mike Sleaford Reunion Bank of Florida Tavares, FL Legal Counsel Mrs. Virginia Townes Akerman LLP Orlando, FL Mrs. Carrie Ann Wozniak Akerman LLP Orlando, FL Mr. William Smith Capital City Bank Group, Inc. Tallahassee, FL Mr. Cary Soud First bank, Clewiston FL Clewiston, FL 6

7 TRUST & WEALTH MANAGEMENT DIVISON LEGISLATIVE COMMITTEE Mr. Mark Parthemer (Chair) Bessemer Trust Company Palm Beach, FL Ms. Sasha A Klein, JD, LLM Sabadell Bank & Trust Palm Beach, FL Mrs. Joan K. Crain, CFP, CTFA, TEP BNY Wealth Management Fort Lauderdale, FL Mr. George W. Lange, Jr., CTFA, TEP Wells Fargo Private Bank Tampa, FL Ms. Melissa M Fricke Wilmington Trust, N.A. Stuart, FL Mr. David A. Lauver Bessemer Trust Company Palm Beach, FL Mr. Rodney B. Frye, J.D., CTFA BB&T Wealth Management Orlando, FL Mr. Mark T. Middlebrook Wells Fargo Private Bank Jacksonville, FL Ms. Kerry M. Geroy, CTFA Naples Global Advisors. Naples, FL Mr. Richard F. Park The Northern Trust Company Tampa, FL Ms. Linda H. Haskins, CPA Coral Gables Trust Company Coral Gables, FL Mrs. Victoria W. Peaper Wilmington Trust, N.A. North Palm Beach, FL Ms. Beth A. Horner The Bank of Tampa Tampa, FL Ms. Tess Pietrucci Wilmington Trust, N.A. Wilmington, DE Mr. David Kassenoff Bank of America Jacksonville, FL Mr. Paul W. Weigel US Trust, Bank of America, Fort Lauderdale, FL Mrs. Joan Bradbury Kayser BMO Private Bank Sarasota, FL Mr. Joel H. Yudenfreund Reliance Trust Company West Palm Beach, FL Mr. Scott M. Kellet Sabadell Bank & Trust Naples, FL 7

8 MAJOR LEGISLATION Financial Transactions (HB 145) Description: House Bill 145 deals with several topics relating to financial transactions. Specifically it has four sections: Cancellation of Mortgages: Under current law, once a borrower has fully paid down a mortgage securing property in the state, the lender must cancel the mortgage within 60 days of receiving payment. This is required regardless of the type of mortgage, and thus conflicts with the intended purpose of an open-end mortgage. The bill addresses this issue by stating that unless a borrower with an open-end line provides written intent to close out the line, the lender is to keep the line open for the borrower to draw upon should they so choose. The bill also decreases the number of days to cancel the mortgage (after satisfaction of the mortgage) from 60 to 45 days. This change better reflects the digital age in which the industry is doing business. Transfers of Funds: The rights and obligations of commercial parties involved in funds transfers are typically governed by Florida s codification of the UCC 4A, found in Ch. 670, F.S. However, fund transfers initiated through electronic means, like a direct deposit for example, are covered by the Electronic Funds Transfer Act. At times both the UCC and the Electronic Funds Transfer Act (EFTA) may apply to a transfer, depending on how the transaction is structured. After changes were made to the EFTA in 2013, confusion arose over which law would apply to certain remittance transfers. The bill addresses this by clarifying that the UCC applies to funds transfers that are remittance transfers under the EFTA, unless the remittance transfer is also an electronic funds transfer as defined by the EFTA. The bill also specifies that the EFTA will preempt the Act should an inconsistency exist between the two. Referral Fees Paid by Consumer Finance Lenders: The bill amends s , F.S., to permit licensed consumer finance lender to pay a referral fee to third parties so long as the amount is not charged directly or indirectly to the borrower. Credit Card Surcharge Fees for Private Schools: Under current law certain private institutions of higher education are exempted from the prohibition against imposing a surcharge on a consumer for paying for goods with a credit card instead of check or cash. The bill would allow all private schools to do the same. Impact: HB 145 offers much needed clarity when it comes to the application of the UCC versus the EFTA, and offers consumer friendly changes to how 8

9 mortgages are handled along with making sure consumers are not directly or indirectly charged referral fees. The bill also provides parity amongst all private institutions. References: House Bill 145 by Representative Kionne McGhee (D- Miami) and Senate Bill 145 by Senator Chris Smith (D-Fort Lauderdale). HB 145 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1, Digital Assets (SB 494) Description: Senate Bill 494 represents the compromise of several parties to come to an agreement on how to treat digital assets, an issue of first impression around the country. SB 494 is a state adaption of the Revised Uniform Fiduciary Access to Digital Assets Act which was approved by the Uniform Law Commission in July, The bill addresses the conflicting interests between custodians, the individuals who possess the assets, and fiduciaries, the individuals trying to access the digital assets of a person who has died or has become incapacitated. Digital assets include electronic communications like s or texts, online photos and even information stored in the cloud. The bill allows fiduciaries to legally manage digital assets and electronic communications in the same manner a fiduciary would, were the assets tangible. The bill specifies that a fiduciary may access the content of digital assets and electronic communications only under certain circumstances and specifies which property is allowed to be accessed. The bill provides custodians immunity from liability for acts or omissions done in good faith compliance with the bill and also grants the custodians of the assets the legal authority they need to interact with a fiduciary while still maintaining the honor of the typical user s privacy expectations. Impact: SB 494 will prove helpful to fiduciaries who have been attempting to deal with this issue the past few years. The bill allows fiduciaries access to what can be very important and valuable assets of an estate, thus allowing them to more fully fulfill their duties to their clients. References: House Bill 897 by Representative Jay Fant (R-Jacksonville) and Senate Bill 494 by Senator Dorothy Hukill (R-Port Orange). SB 494 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1,

10 Service of Process (SB 1104) Description: Senate Bill 1104 deals with service of process on financial institutions. Under current law, service of process can be made on tellers and other employees ill equipped to handle these time sensitive legal documents. For example, should a teller be served a writ of garnishment on a Friday and not get it to the proper legal staff to issue a response within the 24 hour time frame, the bank would then become liable for the amount due, regardless of the fact it simple functions as the holder of the deposit account. The bill addresses the issue by allowing all financial institutions doing business in the state to designate a registered agent or place with the Department of State as their sole location for service of process. Impact: SB 1104 should help make service upon financial institutions, particularly those with a multitude of branches a more efficient process. Should an individual be looking for where to serve a particular institution, all they would have to do is look up the information on Sunbiz.org. References: House Bill 897 by Representative Charlie Stone (R-Ocala) and Senate Bill 1104 by Senator Anitere Flores (R-Miami). SB 1104 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect January 1, Federal Home Loan Bank (HB 1233) Description: House Bill 1233, addresses an ambiguity in the current financial codes that was preventing the Federal Home Loan Bank (FHLBank) from accessing important information about institutions applying to be part of their system. The bill makes clear that OFR has the authority to furnish examination documents to the FHLBank in accordance with an information-sharing agreement between OFR and the FHLBank to execute such agreement by August 1 st, Impact: By clarifying current law HB 1233 will allow more banks to take advantage of the FHLBank system by making sure the FHLBank has access to the appropriate documents to access the financial health of an applicant. References: House Bill 1233 by Representative Cindy Stevenson (R-St. Augustine) and Senate Bill 1490 by Senator Rene Garcia (R-Hialeah). HB 1233 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1,

11 Individuals with Disabilities (HB 7003) Description: House Bill 7003 is a carryover bill from the previous session dealing with financial literacy for individuals with disabilities. The bill establishes the Financial Literacy Program for Individuals with Developmental Disabilities within the Department of Financial Services (DFS). The bill requires qualified public depositories to participate in the program, requiring them to make copies of the DFS brochure on the program to have available at their principal place of business and each branch office that has in-person teller services. The bill also requires qualified public depositories to provide a link on their website to the DFS s website, which houses information on the program. Furthermore, the bill makes clear that qualified public depositories are immune from civil liability arising from either distributing or not distributing the DFS brochure. Lastly, the bill makes clear that the information contained in the brochure or the website may not be attributed to the depository nor does the brochure qualify as financial or investment advice or create a fiduciary duty on the depository to the recipient. House Bill 7003 also addresses the employment and economic independence of individuals with disabilities in other impactful ways by: Modifying the definition of developmental disability to include Down syndrome; Amending Florida s equal employment policy to provide more executive agency employment opportunities for individuals with disabilities; Establishing the Employment First Act, which mandates certain state agencies and organizations to form an interagency cooperative agreement to make sure there is a long term commitment in place to improving employment outcomes for individuals with disabilities; Establishing the Florida Unique Abilities Partner Program, which recognizes businesses that demonstrate major commitments, be it through employment or support, to the independence of individuals with disabilities; and Appropriating several different amounts to help fulfill the requirements and implementation of the programs created above. Impact: The Senate President s priority may help get much needed financial literacy information in the hands of the right people, who need it most. References: House Bill 7003 by the House State Affairs Committee and Senate Bill 7010 by the Senate 11

12 Governmental Oversight and Accountability Committee. HB 7003 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1 st, Bad Faith Assertions of Patent Infringement (HB 1181) Description: House Bill 1181 represents the combined efforts of several interest groups to improve upon the foundational patent troll bill (HB 393) passed in Session After several weeks of negotiation, a compromise was struck. House Bill 1181 amends the Patent Troll Prevention Act to not only protect recipients of frivolous demand letters but also prevent issues that may arise from reverse patent trolling and inhibiting business-to-business communication, by: Requiring a demand letter be objectively baseless before it may be deemed a bad-faith assertion of patent infringement; Removing the act s bond-posting requirement; Limiting when punitive damages may be sought and caps them at $75,000. involved and revised certain provisions to make them more useful for practitioners. References: House Bill 1181 by Representative James Grant (R-Tampa) and Senate Bill 1298 by Senator Jeff Brandes (R- St. Petersburg). HB 1181 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect March 24, Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen. - Winston Churchill Impact: House Bill 1181 made several changes that strike a better balance between the interests of all parties 12

13 BANKING Consumer Credit (SB 626) Description: House Bill 717 allows OFR to enforce the Military Lending Act (MLA) and resulting regulations at the state level by authorizing the OFR to take administrative action against state financial institutions, payday lenders, consumer finance lenders, and title lenders for violations of the MLA and its resulting regulations. The bill further grants OFR the ability to investigate financial institution or entities or any person for violations of the MLA or MLA regulations, and gives them the ability to initiate a proceeding under a cease and desist, injunctive, removal, or administrative fines authority found in the Financial Institution Codes. Impact: Senate Bill 626 provides that violations of the MLA are also state law violations. References: House Bill 717 by Representative Danny Burgess (R- Zephyrhills) and Senate Bill 626 by Senator Don Gaetz (R-Destin). SB 626 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect October 3, Fraudulent Activities Associated with Payment Systems (SB 912) Description: Senate Bill 912 helps to address the major issue of skimming. The bill increases the penalties associated with offenses related to fraudulent activity and requires retail fuel pumps that use credit card scanners to have certain security measures in place. Offenses: Increases the felony classification for unlawful conveyance of fuel; Revises the trafficking in counterfeit credit cards & related documents offense to include possession and also states that it is unlawful to traffic in or possess five cards or documents, which is a major reduction from current law which requires 10; Establishes tiered penalties based on the number of items involved for trafficking in or possession of counterfeit cards and related documents; and Ranks the offenses in the Criminal Punishment Code offense severity level ranking chart. Impact: The bill will help to deter skimming at gas stations and hopefully cut back on the major dollars lost each year due to this type of fraud by establishing heightened penalties while 13

14 establishing certain safeguard requirements at the pump. References: House Bill 761 by Representative Dana Young (R-Tampa) and Senate Bill 912 by Senator Anitere Flores (R-Miami). SB 912 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect October 1, Mergers and Acquisition Brokers (SB 286) Description: In addition to federal laws governing security laws, Florida s Securities and Investor Protection Act (Chapter 517, F.S.) (Act) protects the investing public through regulating securities issued, offered and sold in the state. The Act prohibits dealers, associated persons, and issuers from offering or selling securities in the state unless they are registered with OFR or are exempted in some way. Senate Bill 286 makes several changes to Chapter 517 that would encompass the rule adopted by the North American Securities Administration Association, Inc. (NASAA) in September Specifically the bill includes the following: The bill provides that the offer or sale of securities solely in connection with the transfer of ownership of an eligible privately held company through a M&A broker is an exempt transaction for purposes of Chapter 517, provided that certain conditions are met. But these exempt transactions are still subject to the prohibited practices and remedies featured fewer than ss , , and The bill goes further, exempting M&A brokers from registration with the OFR as a dealer if certain conditions are met. The bill also states that a broker shares the same definition as dealer found in s (6), F.S., and establishes the criteria necessary to constitute an eligible privately held company. The bill also states that prior to completion, the M&A broker must receive written assurances from the control person with the largest percentage of ownership for both the buyer and seller that after the deal is complete, any person who acquires securities or assets will be a control person of the eligible privately held company or will be a control person for the business conducted with the assets of the eligible privately held company. Lastly, the bill exempts an M&A broker from registration unless the following conditions are met: The M&A broker directly or indirectly, in connection with the transfer of ownership of the eligible privately held company, receives, holds transmits, or has custody over funds or securities to be exchanged by the parties involved in the transaction; 14

15 The M&A broker engages on the behalf of an issuer in a public offering of any class of registered securities, or which is required to be registered with the SEC or OFR; The M&A broker engages on the behalf of an issuer in a public offering of securities for with the issuer files or must file, periodic information, documents, and reports with the SEC; The M&A broker engages on the behalf of any party in the transaction involving a public shell company; The M&A broker is subject to a suspension or revocation of registration under 15 U.S.C. s. 78o(b)(4); 15 U.S.C. s. 78c(a)(39), or 15 U.S.C. s (d); or, The M&A broker is subject to a final order described under 15 U.S.C. s. 78o (b)(4)(h). Impact: By adopting these changes the bill exempts the sale of securities in connection with the transfer of ownership of a privately held eligible company and the registration of M&A brokers with the OFR, provided the necessary conditions are met. Thus, this would reduce the regulatory burden and costs association with such transactions that are typically incurred by the buyers and sellers of these types of businesses. References: House Bill 817 by Representative Dan Raulerson (R-Plant City) and Senate Bill 286 by Senator Jeff Brandes (R-St. Petersburg). HB 286 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1, Consumer Debt Collection (HB 713/ SB 562) Description: Senate Bill 562 makes changes to Florida s Consumer Collection Practices Act (FCCPA). The FCCPA regulates consumer collection practices and prohibits a person collecting consumer debt from communicating with a debtor if the person knows that a debtor is represented by an attorney. Problems were arising where creditors were being held liable for communicating with debtors but often had no way of knowing that a debtor was now being represented by an attorney. The bill addresses the issue by providing that a creditor collecting a debt is not liable for communicating with a debtor if the debtor or the debtor s attorney fails to give notice of such representation. The bill specifies what constitutes notice, by stating that a debtor s attorney adequately provides notice to a creditor by: 15

16 Serving pleadings in a filed action; Providing written notice of the representation to allocation or person according to a prior agreement between the creditor and the debtor s attorney that states the debtor is represented and physically discloses the attorney s name and address; or by, Providing written notice by mail, facsimile, or other electronic means designated by the creditor on a billing statement or other written communication pertaining to the debt that states the debtor is represented and discloses the attorney s name and address. To help make sure there are open lines of communication the bill goes further in requiring a creditor to designate, on a billing statement or other written communication involving the debt, a method for communicating notice of representation. attorney and thus avoid liability for communicating with them directly. References: House Bill 713 by Representative Kathleen Passidomo (R- Naples) and Senate Bill 562 by Senator Kelly Stargel (R-Lakeland). SB 562 passed the Senate but died in House Messages and HB 713 died in its last committee of reference, House Regulatory Affairs. High achievement always takes place in the framework of high expectation - Jack Kinder The bill also allows a debtor to notify the creditor of representation by oral notice in response to a communication initiated by the credit in respect to the particular debt and requires a creditor to cease direct communication with the debtor within five days of receiving notice of representation. Impact: Making these changes helps creditors to be more aware of when a debtor is being represented by an 16

17 PROPERTY INSURANCE Limited Sinkhole Coverage Insurance (SB 1274) Description: These bills permit an insurance company to offer additional residential sinkhole coverage. The bill allows that the coverage may be limited to only stabilization of the building and repair for the foundation, requires specific advisory acknowledgements be signed by the insured and establishes surplus insurer requirements which exclude form filing. Impact: This bill will help to create a market for additional sinkhole insurance that does not exist in areas of the state where sinkholes have been prevalent. References: House Bill 1327 by Representative Blaise Ingoglia (R-Spring Hill), and SB 1274 by the Senator Jack Latvala (R-Clearwater). SB 1274 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1, Property Insurance Appraisers (HB 79/SB 336) Description: House Bill 79 and Senate Bill 336 establish a licensing program for property insurance appraisal umpires to be regulated by DFS. The bill establishes licensure fees, continuing education requirements and other licensure requirements. The bill provide that only retired judges, engineers licensed in Florida, contractors, architects, attorneys and qualified adjusters may be licensed. Impact: The bill provides a regulatory scheme for property insurance appraisal umpires. References: House Bill 79 by Representative Frank Artiles (R-Miami) and Senate Bill 336 by Senator Garrett Richter (R-Naples). HB 79 passed the House and died in Senate Messages. SB 336 died in the Senate Appropriations Committee. Assignment of Benefits (HB 1097/SB 596) Description: Currently, Florida law allows a homeowner to assign post-loss insurance benefits to a third party vendor who provides residential mitigation services. However, some third party vendors have gone beyond the scope of work needed, engaged in trading referral fees, and participated in other litigious practices to inflate insurance claim proceeds. The bills require that assigned benefits provide specific notice language to the insurer within three days, may be cancelled within three days, and must contain an 17

18 estimate of proposed services. The bills would also provide that an agreement is voidable if it imposes an overhead fee, exceeds the estimated cost without homeowner approval, prevents insurer and insured communications at any time, or transfers/creates the authority to settle a claim to any person not authorized to settle a claim. Impact: The bills would provide several consumer protections against predatory third party vendors seeking to inflate insurance claim proceeds beyond actual losses. References: House Bill 1097 by Representative Matt Caldwell (R-Lehigh Acres) and SB 596 by Senator Dorothy Hukill (R-Port Orange). HB 1097 died in the House Regulatory Affairs committee. SB 596 died in Senate Judiciary. Prohibited Property Insurance Practices (HB 671/ SB 1248) Description: These bills prohibit specified activities by licensees under the Department of Business and Professional Regulations (DBPR). The bill creates new grounds for disciplinary matters regarding building and construction licensees who give or receive referral fees, interpret insurance coverages, or fail to provide a good faith estimate of repairs before executing a contract authorizing work. Impact: This bill would provide authority for DBPR to revoke licenses when unscrupulous licensees engage in deceptive business practices. References: House Bill 671 by Representative Doug Broxson (R- Pensacola), and SB 1248 by the Senator Miguel Diaz de la Portilla (R-Coral Gables). SB 1248 passed all committees of reference and then died on Special Order Calendar. HB 671 passed all committees of reference and then died on Special Order Calendar. Transportation Network Companies (HB 509/SB 1118) Description: Technological advances have led to new methods for consumers to arrange for transportation, including software that allows the use of digital devices. Currently, Florida provides no uniform regulation of these transportation network companies (TNC s), or companies, such as Uber, Lyft and Sidecar, that provide rides to customers across a digital platform. There has been growing concern that TNC drivers are using their personal vehicles for a commercial purpose, without the same regulations that taxi or limo services are required to abide by. 18

19 House Bill 509 creates a full regulatory framework for TNCs, including fees and registration requirements. The bill also requires that drivers maintain: Primary automobile liability insurance in the amount of at least $50,000 for death and bodily injury per person, $1,000,000 for death and bodily injury for incident and $25,000 for property damage, if the driver is logged in but not engaged in providing the service, and, Primary automobile liability insurance that provides at least $1,000,000 for death, bodily injury and property damage, if the driver is engaged in providing the service. SB 1118 passed all committees of reference and then died on the Special Order Calendar. HB 509 passed the full House but died in Senate Messages. An invincible determination can accomplish almost anything and, in this, lies the great distinction between great men and little men. - Thomas Fuller The bill further provides that if the insurance maintained by the driver has lapsed or does not provide the required coverage, insurance maintained by the TNC shall provide the coverage required beginning with the first dollar of a claim. Impact: The House Bill sets out a regulatory framework whereby TNC s may be regulated. The Senate Bill deals only with insurance requirements of the company and the driver. References: House Bill 509 by Representative Matt Gaetz (R-Shalimar) and SB 1118 by Senator David Simmons (R-Altamonte Springs). 19

20 TAXATION 2016 Tax Package (HB 7099) Description: House Bill 7099 is the 2016 legislative compromise. Over all, the bill represents $129 million in tax reductions. Florida s Sales Tax: The bill puts forth a permanent extension of the sales tax exemption for specific manufacturing machinery. It also expands that exemption to include specific equipment and machinery used for agricultural postharvest materials and metals recycling. There are also exemptions for food and drink purchased by military veterans service organizations. The bill also puts forth a three day back-toschool holiday for clothing and footwear pieces under $60 and school supplies priced at $15 or less amongst other provisions. Florida s Property Tax: The bill specifies that for a certain period of time areas designated enterprise zones as of December 30, 2015, would receive local option economic development tax exemptions. The bill also puts forth that replacement equipment for data centers qualifies for the exemption as well and remains in effect for 20 years. Florida s Corporate Income Tax: The bill updates references to the Internal Revenue Code and revises certain filing dates to keep in conformity with the federal filing date changes. Other Changes: The bill also makes revisions to equalize the tax rates on apple and pear ciders, makes revisions to the tourist development tax, eliminates certain aviation fuel tax while reducing others, modifies the tax calculation for liquor and tobacco sold on cruise ships, and others. Impact: By making a wide array of tax modifications and reductions, the bill should directly impact both Florida s families and businesses in a positive way while also streamlining the tax administration process. References: House Bill 7099 by the House Finance & Tax Committee and Representative Matt Gaetz (R-Shalimar). HB 7099 was approved by the governor. Please see Chapter No , Laws of Florida. The law takes effect July 1, Leadership isn t about age but rather, leadership is about influence, impact, and inspiration. - Onyi Anyado 20

21 TRUST Family Trust Companies (SB 80) Description: Senate Bill 80 clarifies several regulatory issues derived from previous family trust company legislation passed in The bill generally clears up several issues in the original act, including trust company qualifications, when the financial codes apply to family trust companies and establishes registration requirements for foreign and unlicensed family trust companies. The bill also provides more reasonable examination periods, creates administrative processes for revoked or lapsed licenses and requires a court find a breach of fiduciary duty before issuing a cease and desist order, suspension or revocation. Impact: The bill helps to clean up regulatory language and clarify how family trust company offices must operate. References: House Bill 17 by Representative Ken Roberson (R-Punta Gorda) and Senate Bill 80 by Senator Garrett Richter (R-Naples). SB 80 was approved by the Governor. Please see Chapter No , Laws of Florida. The law took effect March 3 rd, Estates (SB 540) Description: Senate Bill 540 is an estates bill package governing Florida trust law. The bill provides a framework which clarifies when a trustee may use trust assets to pay attorney fees and costs in a breach of trust case. The bill further clarifies that Florida law determines the validity and effect of the disposition of property located in the state. Impact: The bill will help to clarify the trust law in regards to breach of trust cases. References: House Bill 393 by Representative Lori Berman (D- Bradenton) and SB 540 by Senator Dorothy Hukill (R-Port Orange). SB 540 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect on July 1, International Trust Entities (SB 1106) Description: Senate Bill 1106 creates a one year moratorium delaying the enforcement of licensure requirements by OFR for international trust representative offices which only act as marketing organizations for licensed international trust companies. 21

22 The moratorium only applies to companies meeting certain regulatory requirements which provide necessary assurances to OFR. Impact: The bill exempts these companies from insurance licensure requirements and regulation, but specifically provides that these entities may not directly offer banking of fiduciary services. Reference: House Bill 1383 by Representative George Moraitis (R-Fort Lauderdale), Senate Bill 1106 by Senator Anitere Flores (R-Miami). SB 1106 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect upon becoming law. Let us never forget that government is ourselves and not an alien power over us. The ultimate rulers of our democracy are not a President and senators and congressman and government officials, but the voters of this country. - Franklin D. Roosevelt 22

23 REAL PROPERTY Judgments (SB 1042) Description: Senate Bill 1042 makes revision to Chapter 56, F.S., dealing with Final Process. Final Process regulates how a creditor is able to college judgments against a debtor. The bill makes several definitional changes to provide consistency throughout the chapters and moves all provisions relating to discovery into a single section. The bill also establishes a procedure for binging non-parties to the original action into supplementary proceedings and establishes that a claim filed under the Uniform Fraudulent Transfer Act that is raised during proceedings supplementary must be initiated by a supplemental complaint. Lastly, the bill states that a person asserting a claim of defense in proceedings supplementary just to delay can be subject to penalties. Impact: By clarifying current law, providing definitions and moving provisions to a single spot the bill helps practitioners to not only find all applicable law in these matters, but also helps further their understanding of statute. References: House Bill 503 by Representative Paul Renner (R-Palm Coast) and Senate Bill 1042 by Senator David Simmons (R-Longwood). SB 1042 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1, Unclaimed Property (HB 783) Description: House Bill 783 addresses issues dealing with unclaimed property. Unclaimed property constitutes any funds or other property that remain unclaimed by the owner for an extended period of time. Currently, holders of such unclaimed property must exercise due diligence to locate the owners and if the owner cannot be located, the holder must report and remit the property to the DFS. House Bill 783 makes several changes both procedural and substantively to how unclaimed property is handled. Within the body of law applicable to unclaimed property the bill revises the definition of business association, domicile, and insurance company to simply the terms. The bill also provides a definition for the term United States to help specify various rights and conditions. The bill also addresses documentary exceptions, which are not required to have the probate court order, as would a normal claim for property related to the 23

24 estate of a deceased person. The bill increases the maximum threshold value for these documentary exceptions from $5,000 to $10,000. The bill provides DFS the ability to estimate property values if the holder fails to produce sufficient records to do so. The bill also repeals the 45 day waiting period previously required for claims made under a power of attorney or purchase agreement and removes the authorization for registrants to receive social security numbers. Impact: House Bill 783 should have a small, but positive impact on the State School Fund while possibly negatively impacting the private sector by eliminating the cap on fees in certain circumstances, for when helping to recover unclaimed property. On the other hand, the bill also presents the possibility of having a small positive impact on the private sector by allowing more small estates to benefit from a simplified claim filing process. References: House Bill 783 by Representative Jay Trumbull (R-Miami) and Senate Bill 970 by Senator Garrett Richter (R-Naples). HB 783 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect July 1, Unclaimed Property (SB 966) Description: Senate Bill 966 requires life insurers to run checks upon several products including life or endowment insurance policyholders, annuitants, and retained asset account holders against the Social Security Administration Death Master File (DMF) to check for deaths. Insurers must also compare all life or endowment insurance policies, annuity contracts, and retained asset accounts that were in force on or after January 1, Should a death be found, the insurer must verify the death and verify if there were other products held with the company and if benefits due. If the policy or contract proceeds remain unclaimed five years from the date of death of the product holder, the property escheats to the state as unclaimed property. The insurer is required to do the comparison only for policies that are currently in-force if the insurer has compared all policies that were in force on or after January 1, 1992, or as of June 30, 2016, has entered into a regulatory settlement with the OIR. The bill exempts the following products: an annuity issued in connection with an employment-based plan subject to the Employee Retirement Income Security Act of 1974 or issued to fund an 24

25 employment- based retirement plan, credit life or accidental death insurance, a joint and survivor annuity should an annuitant still be living, a policy issued to a group master policy owner for which the insurer does not prefer recordkeeping functions, and life insurance assigned to aproned licensee to fund a preneed funeral merchandise or service contract. Impact: By requiring checks against the DMF this bill will hold insurance companies accountable for the promises made to policyholders. The bill will allow what is estimated as hundreds of thousands of Floridians to gain access to life insurance benefits that have been left to them from loved ones, possibly several years ago, that they, but for the bill, most likely would not have received. References: House Bill 1041 by Representative Bill Hager (R-Boca Raton) and Senate Bill 966 by Senator Lizbeth Benacquisto (R-Fort Myers). HB 966 was approved by the Governor. Please see Chapter No , Laws of Florida. The law took effect Housing Discrimination (HB 339/SB 7008) Description: Senate Bill 7008 deals with a recent Fourth District Court of Appeal case which interrupted the Florida Fair Housing Act to read that a person must first exhaust his or her administrative remedies before pursuing a civil action under the Florida Fair Housing Act. The bill would eliminate a prerequisite to filing a civil action alleging an injury caused by discriminatory housing practice. According to the United States Department of Housing and Urban Development (HUD) this interpretation is not substantially equivalent to the federal Fair Housing Act, and thus notified the Florida Housing Commission on Human Relations that its participation in the Fair Housing Assistance Program will be terminated if the prerequisite to filing a civil action is not eliminated by March 12, Impact: If not passed, federal funds currently provided by HUD to support the investigations, training and other administrative costs of the Florida Commission on Human Relations could be at risk. The bill would also have allowed a plaintiff who wished to file a civil action for housing discrimination to file a civil action at any time. References: House Bill 339 by Representative Darryl Rouson (D- St. Petersburg) and Senate Bill 7008 by the Governmental Oversight and Accountability Committee. HB 339 died in its second committee of reference, House Government Operations Appropriations Committee and SB 7008 passed the Senate 38-0 but died in House Messages. 25

26 ENVIRONMENTAL Contaminated Sites (SB 100) Description: Senate Bill 100 further defines several terms related to regulated/unregulated clean up levels and authorizes the Department of Environmental Protection to develop rulemaking where contaminant levels require remediation. The bills also revise the funding source of the recovery fund for the Deepwater Horizon incident. References: House Bill 697 by Representative James Grant (R-Tampa) and SB 100 by Senator Wilton Simpson (R-Trilby). SB 100 was approved by the Governor. Please see Chapter No , Laws of Florida. The law takes effect on July 1, projects for the Florida Communities Trust program and extend the exemption for flood insurers from the usual rate filing process until Finally, the bills extend the provision allowing surplus lines agents to offer flood coverage without making a diligent effort to receive coverage from another authorized insurer until Impact: The bill continues legislative efforts to strengthen the private flood insurance market for Floridians. References: House Bill 929 by Representative Larry Ahern (R- Seminole) and SB 584 by Senator Jeff Brandes (R-St. Petersburg). SB 584 passed two committees of reference and then died on in Senate Appropriations Committee. HB 929 passed all committees of reference and then died on Calendar. Peril of Flood (HB 929/ SB 584) Description: Senate Bill 584 and House Bill 929 authorize the Division of Emergency Management to administer a matching grant program that will provide financial and technical assistance for local governments to implement flood risk reduction policies and projects. The bills also add flood mitigation projects to the list of eligible Discipline is the bridge between goals and accomplishment -Jim Rohn 26