Senate Bill 1130c1

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    Florida Senate - 2000                           CS for SB 1130

    By the Committee on Judiciary and Senator Casas





    308-2087-00

  1                      A bill to be entitled

  2         An act relating to explosives; creating s.

  3         552.095, F.S.; prohibiting the Division of

  4         State Fire Marshal of the Department of

  5         Insurance from issuing a user license to an

  6         applicant who has not demonstrated financial

  7         responsibility; authorizing the division to

  8         prescribe by rule the amount of financial

  9         responsibility within specified limits;

10         prescribing manner of establishing financial

11         responsibility; authorizing a civil suit to

12         obtain payment of damages from a guarantor of a

13         user's financial responsibility; prescribing

14         rights of a guarantor in such proceeding;

15         amending s. 552.13, F.S.; requiring the

16         division to adopt rules prescribing a distance

17         from a residential area within which explosives

18         may not be used and providing a procedure for

19         determining an appropriate amount for proof of

20         financial responsibility; amending s. 552.161,

21         F.S.; authorizing the division to bring a civil

22         action to recover a civil penalty for violation

23         of a rule prohibiting the use of explosives

24         within a prescribed distance from a residential

25         area; amending s. 552.23, F.S.; providing for

26         injunctive relief for substantially affected

27         persons; providing an effective date.

28

29  Be It Enacted by the Legislature of the State of Florida:

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    Florida Senate - 2000                           CS for SB 1130
    308-2087-00




  1         Section 1.  Section 552.095, Florida Statutes, is

  2  created to read:

  3         552.095  User proof of financial responsibility.--

  4         (1)  No license shall be issued to a user until he or

  5  she has filed with the division proof of financial

  6  responsibility in an amount to be determined pursuant to rule

  7  but not to exceed $1 million. Such proof of financial

  8  responsibility must be maintained for the duration of the

  9  license.

10         (2)  A user may establish financial responsibility by

11  means of cash, a trust fund, a surety bond, a letter of

12  credit, casualty insurance, a financial test, a corporate

13  guaranty, or a combination thereof.

14         (3)  Any person who is injured or whose property is

15  damaged by a user's use of explosives may join a guarantor as

16  defined as a named party defendant in any civil action brought

17  against a user.

18         (4)  When a user is in bankruptcy, reorganization, or

19  arrangement under the Federal Bankruptcy Code, or when with

20  reasonable diligence, jurisdiction in any state court or

21  federal court cannot be obtained over a user likely to be

22  solvent at the time of judgment, any claim arising from

23  conduct for which proof of financial responsibility must be

24  provided under this section may be asserted directly against

25  the guarantor providing such proof of financial

26  responsibility. In any action under this section, such

27  guarantor may invoke all rights and defenses that would have

28  been available to the user had the action been brought against

29  the user by the claimant or that would have been available to

30  the guarantor had the action been brought against the

31  guarantor by the user. The total liability of any guarantor is

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    Florida Senate - 2000                           CS for SB 1130
    308-2087-00




  1  limited to the aggregate amount that the guarantor has

  2  provided as evidence of financial responsibility to the user

  3  under this section.

  4         (5)  For purposes of this section, the term "guarantor"

  5  means any surety, bonding company, guarantor under a letter of

  6  credit, or an entity or person who must respond or otherwise

  7  guarantees the financial responsibility of the user.

  8         Section 2.  Section 552.13, Florida Statutes, is

  9  amended to read:

10         552.13  Promulgation of regulations by the Division of

11  State Fire Marshal.--The division shall make, promulgate, and

12  enforce regulations setting forth minimum general standards

13  covering manufacture; transportation other than on a public

14  street, road, or highway (including loading and unloading);

15  use; sale; handling; and storage of explosives. The division

16  shall adopt rules prescribing a distance from a residential

17  area within which explosives may not be used and rules

18  adopting the procedures and guidelines the division will use

19  to approve or modify the amount of financial responsibility

20  required under s. 552.095. Said regulations shall be such as

21  are reasonably necessary for the protection of the health,

22  welfare, and safety of the public and persons possessing,

23  handling, and using such materials and shall be in substantial

24  conformity with generally accepted standards of safety

25  concerning such subject matters.  Such regulations shall be

26  adopted by the division pursuant to the provisions of chapter

27  120.

28         Section 3.  Section 552.161, Florida Statutes, is

29  amended to read:

30         552.161  Administrative fines; civil penalty.--

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    Florida Senate - 2000                           CS for SB 1130
    308-2087-00




  1         (1)  If any person violates any provision of this

  2  chapter or any rule or regulation adopted pursuant thereto, or

  3  violates a cease and desist order, the division may impose an

  4  administrative fine, not to exceed $1,000 for each violation

  5  except as provided in subsection (2), or suspend or revoke the

  6  license or permit issued to such person.  The division may

  7  allow the licensee or permittee a reasonable period, not to

  8  exceed 30 days, within which to pay to the division the amount

  9  of the penalty so imposed.  If the licensee or permittee fails

10  to pay the penalty in its entirety to the division at its

11  office in Tallahassee within the period so allowed, the

12  licenses or permits of the licensee or permittee shall stand

13  revoked upon expiration of such period.

14         (2)  The division may bring a civil action in a court

15  of competent jurisdiction to impose and recover a civil

16  penalty of up to $15,000 per day for a violation of a rule

17  prohibiting the use of explosives within a prescribed distance

18  from a residental area.

19         (3)(2)  All such fines, monetary penalties, and costs

20  received by the division in connection with this chapter shall

21  be deposited in the Insurance Commissioner's Regulatory Trust

22  Fund.

23         Section 4.  Section 552.23, Florida Statutes, is

24  amended to read:

25         552.23  Injunction.--

26         (1)  In addition to the penalties and other enforcement

27  provisions of this chapter, in the event any person engaged in

28  any of the activities covered by this chapter shall violate

29  any provision of this chapter or any rule or regulation

30  adopted or promulgated in pursuance thereto, the division is

31  authorized to resort to proceedings for injunction in the

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    Florida Senate - 2000                           CS for SB 1130
    308-2087-00




  1  circuit court of the county where such person shall reside or

  2  have her or his or its principal place of business, and

  3  therein apply for such temporary and permanent orders as the

  4  division may deem necessary to restrain such person from

  5  engaging in any such activities, until such person shall have

  6  complied with the provisions of this chapter and such rules

  7  and regulations.

  8         (2)  Any substantially affected person may bring a

  9  civil action in circuit court to seek injunctive relief to

10  enforce compliance with this chapter or with rules adopted

11  under this chapter.

12         Section 5.  This act shall take effect July 1, 2000.

13

14          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
15                             SB 1130

16

17  Requires proof of financial responsibility by user for
    issuance of license in lieu of issuance of permit per blasting
18  activity.

19  Gives the division express rule-making authority to adopt
    procedures and guidelines for setting appropriate amounts for
20  proof of financial responsibility.

21  Removes the redundant provision relating to injunctive relief
    by a division.
22
    Relocates the new provision on injunctive relief for
23  substantially affected persons into existing section relating
    to injunctive relief.
24
    Provides definition for guarantor and clarifies that guarantor
25  may be brought in as party defendant in civil action by a
    person who is injured or whose property is damaged by blasting
26  activities.

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