HB 1451

1
A bill to be entitled
2An act relating to insurance; creating s. 624.1275, F.S.;
3proscribing state agencies and political subdivisions from
4prohibiting or excluding licensed insurance agents from
5competing or negotiating for certain insurance products or
6plans; providing a definition; amending s. 636.044, F.S.;
7authorizing certain persons to engage in the solicitation
8and sale of certain insurance relating to air ambulance
9transportation costs; providing requirements and
10limitations; amending s. 943.135, F.S.; authorizing
11certain employing agencies to require law enforcement
12officers and correctional officers to pass certain
13physical examinations for certain purposes; providing
14criteria, requirements, and limitations; authorizing
15certain employing agencies to set tobacco use standards
16for law enforcement officers and correctional officers
17employed by local governments; amending s. 631.181, F.S.;
18providing an exception to certain requirements for a
19signed statement for certain claims; providing
20requirements; creating s. 631.1915, F.S.; providing
21requirements for policyholder collateral, deductible
22reimbursements, and other policyholder obligations;
23specifying that certain collateral held by an insurer or a
24receiver to secure policyholder obligations under a
25deductible agreement are not an estate asset; requiring
26use of such collateral to secure policyholder obligations
27under such agreement; requiring a receiver to use such
28collateral to pay noncovered claims under certain
29circumstances; providing for certain claims to be claims
30against an insurer's estate under certain circumstances;
31requiring a receiver to allocate collateral among certain
32obligations and administer such collateral; authorizing a
33receiver to continue and enforce certain alternative
34policyholder claim funding contractual agreements;
35specifying certain actions as a bar to certain claims and
36an extinguishment of certain obligations; requiring a
37guaranty association to bill a policyholder for certain
38reimbursement amounts for certain claims; specifying
39policyholder obligation for certain amounts; prohibiting
40certain defenses; requiring a receiver to use certain
41collateral for certain purposes; requiring a receiver to
42prorate certain funds of an estate under certain
43circumstances; authorizing a guaranty association to
44deduct certain expenses; requiring a guaranty association
45to provide a complete accounting of certain billing and
46collection activities; authorizing a guaranty association
47to contract for certain collections; providing for claims
48against an insolvent insurer's estate for certain
49unreimbursed claims payments; requiring a receiver to
50periodically adjust collateral held pursuant to a
51deductible agreement; specifying jurisdiction of a state
52court to resolve disputes; preserving rights of a guaranty
53association to reimbursement for certain claims; providing
54application to certain orders of liquidation; providing
55definitions; providing for nonapplication to certain
56claims; amending s. 631.54, F.S.; revising a definition;
57amending s. 631.56, F.S.; revising the membership of the
58board of directors of the Florida Insurance Guaranty
59Association, Inc.; amending s. 631.57, F.S.; revising
60requirements and limitations for obligations of the
61association for covered claims; authorizing the
62association to contract with counties and municipalities
63to issue revenue bonds for certain purposes; creating s.
64631.695, F.S.; providing legislative findings and
65purposes; providing for issuance of revenue bonds through
66counties and municipalities to fund assistance programs
67for paying covered claims for hurricane damage; providing
68procedures, requirements, and limitations for counties,
69municipalities, and the Florida Insurance Guaranty
70Association, Inc., relating to issuance and validation of
71such bonds; providing for payments on and retirement of
72such bonds from certain assessments; prohibiting pledging
73the funds, credit, property, and taxing power of the
74state, counties, and municipalities for payment of bonds;
75specifying authorized uses of bond proceeds; limiting the
76term of bonds; specifying a state covenant to protect
77bondholders from adverse actions relating to such bonds;
78specifying exemptions for bonds, notes, and other
79obligations of counties and municipalities from certain
80taxes or assessments on property and revenues; authorizing
81counties and municipalities to create a legal entity to
82exercise certain powers; requiring the association to
83issue an annual report on the status of certain uses of
84bond proceeds; providing report requirements; requiring
85the association to provide a copy of the report to the
86Legislature and Chief Financial Officer; prohibiting
87repeal of certain provisions relating to certain bonds
88under certain circumstances; providing severability;
89providing an effective date.
90
91Be It Enacted by the Legislature of the State of Florida:
92
93     Section 1.  Section 624.1275, Florida Statutes, is created
94to read:
95     624.1275  Insurance agents; prohibited exclusion from
96public bidding and negotiations.--A licensed insurance agent may
97not be prohibited or excluded from competing or negotiating for
98any insurance product or plan purchased, provided, or endorsed
99by a state agency or any political subdivision of this state on
100the basis of the compensation or contractual or employment
101arrangement granted to the agent by an employer, insurer, or
102licensed agency. The term "political subdivision" has the same
103meaning set forth in s. 1.01.
104     Section 2.  Subsection (5) is added to section 636.044,
105Florida Statutes, to read:
106     636.044  Agent licensing.--
107     (5)  Notwithstanding the provisions of this section, a
108person registered in accordance with part XI of chapter 559 as a
109seller of travel may engage in the solicitation and sale of
110insurance covering the cost of transportation by air ambulance,
111as defined in s. 401.23(4), that is provided by an air ambulance
112service licensed pursuant to s. 401.251. The insurance policy
113providing this coverage is subject to all applicable provisions
114of this chapter. A seller of travel may solicit and sell such
115insurance only in connection with the sale of transportation
116tickets. No such policy shall be in effect for a duration of
117more than 48 hours or for the duration of a specified one-way or
118round-trip travel event.
119     Section 3.  Subsections (5) and (6) are added to section
120943.135, Florida Statutes, to read:
121     943.135  Requirements for continued employment.--
122     (5)  An employing agency as defined in s. 943.10(4) may
123require a law enforcement officer and correctional officer as
124defined in s. 943.10(1), (2), or (3) to successfully pass a
125physical examination in order to be eligible for the presumption
126set forth in s. 112.18. The employing agency shall have the
127physical examination performed prior to or immediately upon
128employment of the officer. This provision shall not affect the
129applicability of the presumption set forth in s. 112.18 for law
130enforcement officers or correctional officers who are currently
131employed by an employing agency.
132     (6)  An employing agency as defined in s. 943.10(4) may set
133tobacco use standards for law enforcement officers and
134correctional officers as defined in s. 943.10(1), (2), or (3)
135employed by a municipality, county, or political subdivision of
136the state or any agent of the political subdivision who has
137constitutional authority or statutory authority to employ or
138appoint an officer.
139     Section 4.  Paragraph (f) is added to subsection (2) of
140section 631.181, Florida Statutes, to read:
141     631.181  Filing and proof of claim.--
142     (2)
143     (f)  The signed statement required by this section shall
144not be required on claims for which adequate claims file
145documentation exists within the records of the insolvent
146insurer. Claims for payment of unearned premium shall not be
147required to use the signed statement required by this section if
148the receiver certifies to the guaranty fund that the records of
149the insolvent insurer are sufficient to determine the amount of
150unearned premium owed to each policyholder of the insurer and
151such information is remitted to the guaranty fund by the
152receiver in electronic or other mutually agreed upon format.
153     Section 5.  Section 631.1915, Florida Statutes, is created
154to read:
155     631.1915  Policyholder collateral; deductible
156reimbursements; other policyholder obligations.--
157     (1)  Any collateral held by or for the benefit of, or
158assigned to, the insurer or subsequently the receiver in order
159to secure the obligations of a policyholder under a deductible
160agreement shall not be considered an asset of the estate and
161shall be maintained and administered by the receiver as provided
162in this section, notwithstanding any other provision of law or
163contract to the contrary.
164     (2)  If the collateral is being held by or for the benefit
165of, or assigned to, the insurer or subsequently the receiver to
166secure obligations under a deductible agreement with a
167policyholder subject to the provisions of this section, the
168collateral shall be used to secure the policyholder's obligation
169to fund or reimburse claims payments within the agreed
170deductible amount.
171     (3)  If a claim is subject to a deductible agreement and
172secured by collateral and is not covered by any guaranty
173association, the receiver shall adjust and pay the noncovered
174claim using the collateral, but only to the extent of the
175available collateral. A claim against the collateral by a third-
176party claimant is not a claim against the insolvent insurer's
177estate for purposes of s. 631.193. If the collateral is
178exhausted and the insured is not able to provide funds to pay
179the remaining claims within the deductible, the remaining claims
180shall be claims against the insurer's estate subject to
181complying with other provisions in this part for the filing and
182allowance of such claims.
183     (4)  To the extent the receiver is holding collateral
184provided by a policyholder that was obtained to secure a
185deductible agreement and to secure other obligations of the
186policyholder, the receiver shall equitably allocate the
187collateral among such obligations and administer the collateral
188allocated to the deductible agreement pursuant to this section.
189The receiver shall inform the guaranty associations of the
190method and details of all the foregoing allocations.
191     (5)  Regardless of whether there is collateral, if the
192insurer has contractually agreed to allow the policyholder to
193fund its own claims within the deductible amount pursuant to a
194deductible agreement, through the policyholder's own
195administration of its claims or through the policyholder
196providing funds directly to a third-party administrator who
197administers the claims, the receiver may allow such funding
198arrangement to continue and, where applicable, shall enforce
199such arrangements. The funding of such claims by the
200policyholder within the deductible amount acts as a bar to any
201claim for such amount in the liquidation proceeding, including,
202but not limited to, any such claim by the policyholder or the
203third-party claimant. The funding extinguishes both the
204obligation, if any, of any guaranty association to pay such
205claims within the deductible amount and the obligations, if any,
206of the policyholder or third-party administrator to reimburse
207the guaranty association. No charge of any kind shall be made
208against any guaranty association on the basis of the
209policyholder's funding of claims payment made pursuant to the
210mechanism set forth in this subsection.
211     (6)  If the insurer has not contractually agreed to allow
212the policyholder to fund the policyholder's own claims within
213the deductible amount, to the extent a guaranty association is
214required by applicable state law to pay any claims for which the
215insurer would have been entitled to reimbursement from the
216policyholder under the terms of the deductible agreement and to
217the extent the claims have not been paid by a policyholder or
218third party, the guaranty association shall bill the
219policyholder for such reimbursement and the policyholder is
220obligated to pay such amount to the guaranty association for the
221benefit of the guaranty associations who paid such claims.
222Neither the insolvency of the insurer nor its inability to
223perform any of its obligations under the deductible agreement
224shall be a defense to the policyholder's reimbursement
225obligation under the deductible agreement. If the policyholder
226fails to pay the amounts due within 60 days after the bill for
227such reimbursements is due, the receiver shall use the
228collateral to the extent necessary to reimburse the guaranty
229association and, at the same time, the guaranty association may
230pursue other collection efforts against the policyholder. If
231more than one guaranty association has a claim against the same
232collateral and the available collateral, after allocation under
233subsection (4), together with billing and collection efforts,
234are together insufficient to pay each guaranty association in
235full, the receiver shall prorate payments to each guaranty
236association based upon the relationship the amount of claims
237each guaranty association has paid bears to the total of all
238claims paid by such guaranty associations.
239     (7)(a)  The guaranty association is entitled to deduct from
240collateral to be returned to a policyholder reasonable actual
241expenses incurred in fulfilling the responsibilities under this
242provision.
243     (b)  With respect to claims payments made by any guaranty
244association, the guaranty association shall provide any other
245guaranty associations and the receiver with a complete
246accounting of the guaranty association's deductible billing and
247collection activities, including copies of the policyholder
248billings when rendered and the reimbursements collected. The
249cost of reports required pursuant to this subsection shall be
250considered part of the expenses of the guaranty association.
251     (c)  The guaranty association may contract with the
252receiver for the direct collection from the policyholders on the
253same basis as the guaranty association and with the same rights
254and remedies. If so assigned, the receiver shall report any
255amounts so collected from each policyholder to the guaranty
256association.
257     (d)  To the extent that guaranty associations pay claims
258within the deductible amount but are not reimbursed by the
259receiver under this section or by policyholder payments from the
260guaranty associations' own collection efforts, the guaranty
261association shall have a claim on the insolvent insurer's estate
262for such unreimbursed claims payments. The priority of such
263claim shall depend upon the nature of the payment that should
264have been reimbursed.
265     (e)  Periodically, but not more than annually, the receiver
266shall adjust the collateral being held pursuant to the
267deductible agreement. The receiver shall maintain adequate
268collateral to secure 110 percent of the entire estimated
269obligation of the policyholder. The receiver shall provide a
270copy of its collateral review to any obligated guaranty
271association. Once all claims covered by the collateral have been
272paid and the receiver is satisfied that no new claims can be
273presented, the receiver may release any remaining collateral.
274     (8)  The state court that has jurisdiction over the
275liquidation proceedings shall have jurisdiction to resolve
276disputes arising under this section.
277     (9)  Nothing in this section limits or adversely affects
278any right the guaranty associations may have under applicable
279state law to obtain reimbursement from certain classes of
280policyholders for claims payments made by such guaranty
281associations under policies of the insolvent insurer or for
282related expenses the guaranty associations incur.
283     (10)  This section applies to all liquidations for which an
284order is entered after July 1, 2005.
285     (11)  For purposes of this section, the term:
286     (a)  "Deductible agreement" means any combination of one or
287more policies, endorsements, contracts, or security agreements
288that provide for the policyholder to bear the risk of loss
289within a specified amount per claim or occurrence covered under
290a policy of insurance and that may be subject to aggregate limit
291of policyholder reimbursement obligations.
292     (b)  "Noncovered claim" means a claim that is subject to a
293deductible agreement, may be secured by collateral, and is not
294covered by a guaranty association.
295     (12)  This section does not apply to first-party claims.
296     Section 6.  Subsection (3) of section 631.54, Florida
297Statutes, is amended to read:
298     631.54  Definitions.--As used in this part:
299     (3)  "Covered claim" means an unpaid claim, including one
300of unearned premiums, which arises out of, and is within the
301coverage, and not in excess of, the applicable limits of an
302insurance policy to which this part applies, issued by an
303insurer, if such insurer becomes an insolvent insurer and the
304claimant or insured is a resident of this state at the time of
305the insured event or the property from which the claim arises is
306permanently located in this state. For entities other than
307individuals, the residence of a claimant, insured, or
308policyholder is the state in which the entity's principal place
309of business is located at the time of the insured event.
310"Covered claim" shall not include:
311     (a)  Any amount due any reinsurer, insurer, insurance pool,
312or underwriting association, sought directly or indirectly
313through a third party, as subrogation, contribution,
314indemnification, or otherwise; or
315     (b)  Any claim that would otherwise be a covered claim
316under this part that has been rejected by any other state
317guaranty fund on the grounds that an insured's net worth is
318greater than that allowed under that state's guaranty law.
319Member insurers shall have no right of subrogation,
320contribution, indemnification, or otherwise, sought directly or
321indirectly through a third party, against the insured of any
322insolvent member.
323     Section 7.  Subsection (1) of section 631.56, Florida
324Statutes, is amended to read:
325     631.56  Board of directors.--
326     (1)  The board of directors of the association shall
327consist of not less than six five or more than ten nine persons
328serving terms as established in the plan of operation. The
329department shall approve and appoint to the board up to nine
330persons recommended by the member insurers. The department shall
331select one Florida-licensed insurance agent to serve as a
332nonvoting member. In the event the department finds that any
333recommended person does not meet the qualifications for service
334on the board, the department shall request the member insurers
335to recommend another person. Each member shall serve for a 4-
336year term and may be reappointed. Vacancies on the board shall
337be filled for the remaining period of the term in the same
338manner as initial appointments.
339     Section 8.  Paragraph (a) of subsection (1), paragraph (d)
340of subsection (2), and paragraph (a) of subsection (3) of
341section 631.57, Florida Statutes, are amended to read:
342     631.57  Powers and duties of the association.--
343     (1)  The association shall:
344     (a)1.  Be obligated to the extent of the covered claims
345existing:
346     a.  Prior to adjudication of insolvency and arising within
34730 days after the determination of insolvency;
348     b.  Before the policy expiration date if less than 30 days
349after the determination; or
350     c.  Before the insured replaces the policy or causes its
351cancellation, if she or he does so within 30 days of the
352determination.
353     2.a.  The obligation under subparagraph 1. shall include
354only that amount of each covered claim which is in excess of
355$100 and is less than $300,000, except with respect to policies
356covering condominium associations or homeowners' associations,
357which associations have a responsibility to provide insurance
358coverage on residential units within the association, the
359obligation shall include that amount of each covered property
360insurance claim which is less than $100,000 multiplied by the
361number of condominium units or other residential units; however,
362as to homeowners' associations, this sub-subparagraph
363subparagraph applies only to claims for damage or loss to
364residential units and structures attached to residential units.
365     b.  Notwithstanding sub-subparagraph a., the association
366has no obligation to pay covered claims that are to be paid from
367the proceeds of bonds issued under s. 631.695. However, the
368association shall assign and pledge the first available moneys
369from all or part of the assessments to be made under paragraph
370(3)(a) to or on behalf of the issuer of such bonds for the
371benefit of the holders of such bonds. The association shall
372administer any such covered claims and present valid covered
373claims for payment in accordance with the provisions of the
374assistance program in connection with which such bonds have been
375issued.
376     3.  In no event shall the association be obligated to a
377policyholder or claimant in an amount in excess of the
378obligation of the insolvent insurer under the policy from which
379the claim arises.
380     (2)  The association may:
381     (d)  Negotiate and become a party to such contracts as are
382necessary to carry out the purpose of this part. Additionally,
383the association may enter into such contracts with a
384municipality or county or such legal entity created pursuant to
385s. 163.01(7)(g) as are necessary in order for the municipality
386or county or such legal entity to issue bonds under s. 631.695.
387In connection with the issuance of any such bonds and the
388entering into of any such necessary contracts, the association
389may agree to such terms and conditions as the association deems
390necessary and proper.
391     (3)(a)  To the extent necessary to secure the funds for the
392respective accounts for the payment of covered claims, and also
393to pay the reasonable costs to administer the same, and to the
394extent necessary to secure the funds for the account specified
395in s. 631.55(2)(c), or to retire indebtedness, including,
396without limitation, the principal, redemption premium, if any,
397and interest on, and related costs of issuance of, bonds issued
398under s. 631.695, and the funding of any reserves and other
399payments required under the bond resolution or trust indenture
400pursuant to which such bonds have been issued, the office, upon
401certification of the board of directors, shall levy assessments
402in the proportion that each insurer's net direct written
403premiums in this state in the classes protected by the account
404bears to the total of said net direct written premiums received
405in this state by all such insurers for the preceding calendar
406year for the kinds of insurance included within such account.
407Assessments shall be remitted to and administered by the board
408of directors in the manner specified by the approved plan. Each
409insurer so assessed shall have at least 30 days' written notice
410as to the date the assessment is due and payable. Every
411assessment shall be made as a uniform percentage applicable to
412the net direct written premiums of each insurer in the kinds of
413insurance included within the account in which the assessment is
414made. The assessments levied against any insurer shall not
415exceed in any one year more than 2 percent of that insurer's net
416direct written premiums in this state for the kinds of insurance
417included within such account during the calendar year next
418preceding the date of such assessments.
419     Section 9.  Section 631.695, Florida Statutes, is created
420to read:
421     631.695  Revenue bond issuance through counties or
422municipalities.--
423     (1)  The Legislature finds:
424     (a)  The potential for widespread and massive damage to
425persons and property caused by hurricanes making landfall in
426this state can generate insurance claims of such a number as to
427render numerous insurers operating within this state insolvent
428and therefore unable to satisfy covered claims.
429     (b)  The inability of insureds within this state to receive
430payment of covered claims or to timely receive such payment
431creates financial and other hardships for such insureds and
432places undue burdens on the state, the affected units of local
433government, and the community at large.
434     (c)  In addition, the failure of insurers to pay covered
435claims or to timely pay such claims due to the insolvency of
436such insurers can undermine the public's confidence in insurers
437operating within this state, thereby adversely affecting the
438stability of the insurance industry in this state.
439     (d)  The state has previously taken action to address these
440problems by adopting the Florida Insurance Guaranty Association
441Act, which, among other things, provides a mechanism for the
442payment of covered claims under certain insurance policies to
443avoid excessive delay in payment and to avoid financial loss to
444claimants or policyholders because of the insolvency of an
445insurer.
446     (e)  In the wake of the unprecedented destruction caused by
447various hurricanes that have made landfall in this state, the
448resultant covered claims, and the number of insurers rendered
449insolvent thereby, it is evident that alternative programs must
450be developed to allow the Florida Insurance Guaranty
451Association, Inc., to more expeditiously and effectively provide
452for the payment of covered claims.
453     (f)  It is therefore determined to be in the best interests
454of, and necessary for, the protection of the public health,
455safety, and general welfare of the residents of this state, and
456for the protection and preservation of the economic stability of
457insurers operating in this state, and it is declared to be an
458essential public purpose, to permit certain municipalities and
459counties to take such actions as will provide relief to
460claimants and policyholders having covered claims against
461insolvent insurers operating in this state by expediting the
462handling and payment of covered claims.
463     (g)  To achieve the foregoing purposes, it is proper to
464authorize municipalities and counties of this state
465substantially affected by the landfall of a category 1 or
466greater hurricane to issue bonds to assist the Florida Insurance
467Guaranty Association, Inc., in expediting the handling and
468payment of covered claims of insolvent insurers.
469     (h)  In order to avoid the needless and indiscriminate
470proliferation, duplication, and fragmentation of such assistance
471programs, it is in the best interests of the residents of this
472state to authorize municipalities and counties severely affected
473by a category 1 or greater hurricane to provide for the payment
474of covered claims beyond their territorial limits in the
475implementation of such programs.
476     (i)  It is a paramount public purpose for municipalities
477and counties substantially affected by the landfall of a
478category 1 or greater hurricane to be able to issue bonds for
479the purposes described in this section. Such issuance shall
480provide assistance to residents of those municipalities and
481counties as well as to other residents of this state.
482     (2)  The governing body of any municipality or county the
483residents of which have been substantially affected by a
484category 1 or greater hurricane may issue bonds to fund an
485assistance program in conjunction with, and with the consent of,
486the Florida Insurance Guaranty Association, Inc., for the
487purpose of paying claimants' or policyholders' covered claims as
488defined in s. 631.54 arising through the insolvency of an
489insurer, which insolvency is determined by the Florida Insurance
490Guaranty Association, Inc., to have been a result of a category
4911 or greater hurricane, regardless of whether such claimants or
492policyholders are residents of such municipality or county or
493the property to which such claim relates is located within or
494outside the territorial jurisdiction of such municipality or
495county. The power of a municipality or county to issue bonds as
496described in this section is in addition to any powers granted
497by law and may not be abrogated or restricted by any provisions
498in such municipality's or county's charter. A municipality or
499county issuing bonds for this purpose shall enter into such
500contracts with the Florida Insurance Guaranty Association, Inc.,
501or any entity acting on behalf of the Florida Insurance Guaranty
502Association, Inc., as are necessary to implement the assistance
503program. Any bonds issued by a municipality or county or
504combination thereof under this subsection shall be payable from
505and secured by moneys received by or on behalf of the
506municipality or county from assessments levied under s.
507631.57(3)(a) and assigned and pledged to or on behalf of the
508municipality or county for the benefit of the holders of such
509bonds in connection with such assistance program. The funds,
510credit, property, and taxing power of the state or any
511municipality or county shall not be pledged for the payment of
512such bonds.
513     (3)  Bonds may be validated by such municipality or county
514pursuant to chapter 75. The proceeds of such bonds may be used
515to pay covered claims of insolvent insurers; to refinance or
516replace previously existing borrowings or financial
517arrangements; to pay interest on bonds; to fund reserves for the
518bonds; to pay expenses incident to the issuance or sale of any
519bond issued under this section, including costs of validating,
520printing, and delivering the bonds, costs of printing the
521official statement, costs of publishing notices of sale of the
522bonds, costs of obtaining credit enhancement or liquidity
523support, and related administrative expenses; or for such other
524purposes related to the financial obligations of the fund as the
525association may determine. The term of the bonds may not exceed
52630 years.
527     (4)  The state covenants with holders of bonds of the
528assistance program that the state will not take any action which
529will have a material adverse affect on such holders and will not
530repeal or abrogate the power of the board of directors of the
531association to direct the Office of Insurance Regulation to levy
532the assessments and to collect the proceeds of the revenues
533pledged to the payment of such bonds as long as any such bonds
534remain outstanding unless adequate provision has been made for
535the payment of such bonds pursuant to the documents authorizing
536the issuance of such bonds.
537     (5)  The accomplishment of the authorized purposes of such
538municipality or county under this section is in all respects for
539the benefit of the people of the state, for the increase of
540their commerce and prosperity, and for the improvement of their
541health and living conditions. Such municipality or county, in
542performing essential governmental functions in accomplishing its
543purposes, is not required to pay any taxes or assessments of any
544kind whatsoever upon any property acquired or used by the county
545or municipality for such purposes or upon any revenues at any
546time received by the county or municipality. The bonds, notes,
547and other obligations of such municipality or county, and the
548transfer of and income from such bonds, notes, and other
549obligations, including any profits made on the sale of such
550bonds, notes, and other obligations, are exempt from taxation of
551any kind by the state or by any political subdivision or other
552agency or instrumentality of the state. The exemption granted in
553this subsection is not applicable to any tax imposed by chapter
554220 on interest, income, or profits on debt obligations owned by
555corporations.
556     (6)  Two or more municipalities or counties the residents
557of which have been substantially affected by a category 1 or
558greater hurricane may create a legal entity pursuant to s.
559163.01(7)(g) to exercise the powers described in this section as
560well as those powers granted in s. 163.01(7)(g). Reference in
561this section to a municipality or county includes such legal
562entity.
563     (7)  The association shall issue an annual report on the
564status of the use of bond proceeds as related to insolvencies
565caused by hurricanes. The report must contain the number and
566amount of claims paid. The association shall also include an
567analysis of the revenue generated from the assessment levied
568under s. 631.57(3)(a) to pay such bonds. The association shall
569submit a copy of the report to the President of the Senate, the
570Speaker of the House of Representatives, and the Chief Financial
571Officer within 90 days after the end of each calendar year in
572which bonds were outstanding.
573     Section 10.  No provision of s. 631.57 or s. 631.695,
574Florida Statutes, shall be repealed until such time as the
575principal, redemption premium, if any, and interest on all bonds
576issued under s. 631.695, Florida Statutes, payable and secured
577from assessments levied under s. 631.57(3)(a), Florida Statutes,
578have been paid in full or adequate provision for such payment
579has been made in accordance with the bond resolution or trust
580indenture pursuant to which such bonds were issued.
581     Section 11.  If any provision of this act or the
582application thereof to any person or circumstance is held
583invalid, the invalidity shall not affect other provisions or
584applications of the act which can be given effect without the
585invalid provision or application, and to this end the provisions
586of this act are declared severable.
587     Section 12.  This act shall take effect upon becoming a
588law.


CODING: Words stricken are deletions; words underlined are additions.