House Bill 1929

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    Florida House of Representatives - 2000                HB 1929

        By Representative R. Diaz de la Portilla






  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; amending s. 552.161, F.S.;

19         providing for injunctive relief; authorizing

20         the division to bring a civil action to recover

21         a civil penalty for violation of a rule

22         prohibiting the use of explosives within a

23         prescribed distance from a residential area;

24         providing an effective date.

25

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

27

28         Section 1.  Section 552.095, Florida Statutes, is

29  created to read:

30         552.095  User financial responsibility.--

31

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    Florida House of Representatives - 2000                HB 1929

    737-102-00






  1         (1)  An applicant for a user license must provide to

  2  the division proof of financial responsibility in an amount

  3  determined by rule of the division not to exceed $1 million,

  4  and based upon the extent and duration of the use of

  5  explosives.

  6         (2)  A user may establish financial responsibility by

  7  means of cash, a trust fund, surety bond, a letter of credit,

  8  casualty insurance, a financial test, corporate guaranty, or a

  9  combination thereof. The financial responsibility must be

10  maintained until the division determines that the explosive

11  activity has been completed.

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

13  damaged by a user's use of explosives may initiate a civil

14  action for payment of damages from the guarantor of the user's

15  financial responsibility.

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

17  arrangement under the Federal Bankruptcy Code, or when with

18  reasonable diligence, jurisdiction in any state court or

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

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

21  conduct for which evidence of financial responsibility must be

22  provided under this section may be asserted directly against

23  the guarantor providing such evidence of financial

24  responsibility. In any action under this section, such

25  guarantor may invoke all rights and defenses that would have

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

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

28  the guarantor had the action been brought against the

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

30  limited to the aggregate amount that the guarantor has

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    Florida House of Representatives - 2000                HB 1929

    737-102-00






  1  provided as evidence of financial responsibility to the user

  2  under this section.

  3         Section 2.  Section 552.13, Florida Statutes, is

  4  amended to read:

  5         552.13  Promulgation of regulations by the Division of

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

  7  enforce regulations setting forth minimum general standards

  8  covering manufacture; transportation other than on a public

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

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

11  shall adopt rules prescribing a distance from a residential

12  area within which explosives may not be used. Said regulations

13  shall be such as are reasonably necessary for the protection

14  of the health, welfare, and safety of the public and persons

15  possessing, handling, and using such materials and shall be in

16  substantial conformity with generally accepted standards of

17  safety concerning such subject matters.  Such regulations

18  shall be adopted by the division pursuant to the provisions of

19  chapter 120.

20         Section 3.  Section 552.161, Florida Statutes, is

21  amended to read:

22         552.161  Administrative fines; injunctive relief; civil

23  penalty.--

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

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

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

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

28  except as provided in subsection (3), or suspend or revoke the

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

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

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

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    Florida House of Representatives - 2000                HB 1929

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

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

  3  office in Tallahassee within the period so allowed, the

  4  licenses or permits of the licensee or permittee shall stand

  5  revoked upon expiration of such period.

  6         (2)  The division or any substantially affected person

  7  may bring a civil action in a court of competent jurisdiction

  8  to seek injunctive relief to enforce compliance with this

  9  chapter or with rules adopted under this chapter.

10         (3)  The division may bring a civil action in a court

11  of competent jurisdiction to impose and recover a civil

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

13  prohibiting the use of explosives within a prescribed distance

14  from a residental area.

15         (4)(2)  All such fines, monetary penalties, and costs

16  received by the division in connection with this chapter shall

17  be deposited in the Insurance Commissioner's Regulatory Trust

18  Fund.

19         Section 4.  This act shall take effect July 1, 2000.

20

21            *****************************************

22                          SENATE SUMMARY

23    Provides that an applicant for a user license to use
      explosives must provide to the Division of State Fire
24    Marshal of the Department of Insurance proof of financial
      responsibility in an amount set by the division not to
25    exceed $1 million. Provides means of providing financial
      responsibility. Authorizes a civil action against the
26    guarantor of a user's financial responsibility for
      damages. Authorizes a claim against a guarantor under
27    certain circumstances. Prescribes rights of a guarantor
      in such a proceeding. Authorizes the division to adopt
28    rules prescribing a distance from a residential area
      within which explosives may not be used. Provides
29    authority for the division or any interested person to
      bring an action for injunctive relief. Authorizes the
30    division to bring a civil action to recover a civil
      penalty for a division rule prohibiting the use of
31    explosives within a prescribed distance from a
      residential area.
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