Bill Amendment: FL S0966 | 2024 | Regular Session
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: Builder Warranties
Status: 2024-03-06 - Laid on Table, refer to CS/CS/HB 623 [S0966 Detail]
Download: Florida-2024-S0966-Senate_Committee_Amendment_188400.html
Bill Title: Builder Warranties
Status: 2024-03-06 - Laid on Table, refer to CS/CS/HB 623 [S0966 Detail]
Download: Florida-2024-S0966-Senate_Committee_Amendment_188400.html
Florida Senate - 2024 COMMITTEE AMENDMENT Bill No. SB 966 Ì188400uÎ188400 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Burgess) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Subsection (1) of section 634.312, Florida 6 Statutes, is amended to read: 7 634.312 Forms; required provisions and procedures.— 8 (1) Except as provided in s. 634.602:All9 (a) Home warranty contracts are assignable in a consumer 10 transaction and must contain a statement informing the purchaser 11 of the home warranty of her or his right to assign it, at least 12 within 15 days from the date the home is sold or transferred, to 13 a subsequent retail purchaser of the home covered by the home 14 warranty and all conditions on such right of transfer. 15 (b) The home warranty company may charge an assignment fee 16 not to exceed $40. 17 (c) Home warranty assignments include, but are not limited 18 to, the assignment from a home builder who purchased the home 19 warranty to a subsequent home purchaser. 20 Section 2. Section 634.331, Florida Statutes, is amended to 21 read: 22 634.331 Coverage of property for sale.—A home warranty may 23 provide coverage of residential property during the listing 24 period of such property for a period not to exceed 12 months, 25 provided that the home warranty company charges the warranty 26 purchaser a separately identifiable charge for the listing 27 period coverage in an amount equal to at least 15 percent of the 28 annual premium charged for the home warranty and the charge for 29 such coverage is due at theearlier of theend of the listing 30 periodor the date the sale of the residential property is31closed. The requirements in s. 634.602 apply to a home warranty 32 that is transferred to the home purchaser. 33 Section 3. Part IV of chapter 634, Florida Statutes, 34 consisting of sections 634.601 and 634.602, Florida Statutes, is 35 created to read: 36 37 PART IV 38 MISCELLANEOUS PROVISIONS 39 40 634.601 Definitions.—As used in this part, the term: 41 (1) “Builder” means the primary contractor of a home who 42 possesses the requisite skill, knowledge, and experience, and 43 has the responsibility, to supervise, direct, manage, and 44 control the contracting activities of the business organization 45 with which he or she is connected and who has the responsibility 46 to supervise, direct, manage, and control the construction work 47 on a job for which he or she has obtained a building permit. 48 Construction work includes, but is not limited to, construction 49 of structural components. 50 (2) “Home warranty” or “warranty” has the same meaning as 51 in s. 634.301. 52 (3) “Home warranty association” has the same meaning as in 53 s. 634.301. 54 (4) “Indemnify” means to undertake repair or replacement of 55 a home’s structural component, or pay compensation for such 56 repair or replacement by cash, check, or other similar means, 57 including, but not limited to, electronic means. 58 (5) “Structural component” means one or more essential 59 elements of a home, including the roof, foundation, basement, 60 exterior or interior walls, ceilings, floors, or spray foam. As 61 used in this subsection, the term “exterior walls” includes, but 62 is not limited to, any siding, stucco, or paint on the exterior 63 walls. 64 634.602 Structural component indemnification or coverage.— 65 (1) Except as provided in this section, if a builder is 66 obligated under and provides a home purchaser an express written 67 warranty on or after January 1, 2025, that indemnifies a home 68 purchaser against the cost of repairing the structural 69 components of a home and such warranty has not become null and 70 void or lawfully terminated under the terms of the warranty, the 71 express written warranty and all indemnification rights, terms, 72 and conditions thereunder shall automatically transfer to any 73 subsequent purchaser of the home for the duration of the express 74 written warranty. 75 (2) Except as provided in this section, if a builder 76 purchases a home warranty from a licensed home warranty 77 association on or after January 1, 2025, covering the structural 78 components of a home and such warranty has not become null and 79 void or lawfully terminated under the terms of the warranty, the 80 home warranty and all indemnification rights, terms, and 81 conditions thereunder shall automatically transfer to any 82 subsequent purchaser for the duration of the home warranty. 83 (3) With respect to home maintenance contracts: 84 (a) A home warranty that is conditioned on the continuation 85 of a maintenance contract shall automatically transfer to a 86 subsequent purchaser pursuant to subsections (1) and (2) unless 87 the subsequent purchaser declines the assignment of the 88 underlying maintenance contract. If a subsequent purchaser 89 accepts the assignment of the maintenance contract, the 90 subsequent purchaser is obligated to comply with the terms and 91 conditions of the maintenance contract, including, but not 92 limited to, the payment of consideration. A builder or home 93 warranty association must provide notice of any amounts due 94 under the maintenance contract to a subsequent purchaser at the 95 home address covered by such contract unless the subsequent 96 purchaser notifies the builder or home warranty association of a 97 preferred method of notification. 98 (b) Unless a maintenance contract is a condition of a home 99 warranty, the home warranty does not automatically transfer to a 100 subsequent purchaser. Such maintenance contract shall transfer 101 to a subsequent purchaser only to the extent that the builder or 102 home warranty association and subsequent purchaser agree to the 103 assignment of the contract. 104 (4) A subsequent purchaser who receives the benefit of a 105 warranty being automatically transferred to him or her for the 106 duration of the home warranty pursuant to this section must 107 notify the builder or home warranty association that he or she 108 has purchased the home and therefore is the warrantee under the 109 home warranty. Such notice may be given at any time while the 110 warranty remains in effect. A builder or home warranty 111 association may not require in the terms of a warranty a shorter 112 notice period than provided for in this subsection. 113 (5) A builder may not charge a fee for a transfer of a 114 warranty which occurs automatically pursuant to this section. 115 (6) This section does not: 116 (a) Modify or extend the commencement date or the duration, 117 or expand the scope of coverage, of the express written warranty 118 or home warranty, as applicable, beyond the express written 119 warranty’s or home warranty’s terms. 120 (b) Require a builder or home warranty association to be 121 obligated under a warranty that has become null and void 122 pursuant to the terms of the warranty. 123 (c) Require a builder that is obligated under and provides 124 a home purchaser an express written warranty to obtain a license 125 under the Florida Insurance Code, and such practice does not 126 constitute the transaction of insurance subject to the 127 requirements of the code, unless otherwise required by law. 128 (d) Permit the provision of indemnification against 129 consequential damages arising from the failure of any structural 130 component, which practice constitutes the transaction of 131 insurance subject to the requirements of the Florida Insurance 132 Code. 133 (e) Require any subsequent purchaser to be bound by the 134 terms of a home maintenance contract unless he or she agrees to 135 the maintenance contract being assigned to him or her. 136 Section 4. Chapter 634, Florida Statutes, entitled 137 “Warranty Associations,” is renamed “Warranties and Warranty 138 Associations.” 139 Section 5. This act shall take effect July 1, 2024. 140 141 ================= T I T L E A M E N D M E N T ================ 142 And the title is amended as follows: 143 Delete everything before the enacting clause 144 and insert: 145 A bill to be entitled 146 An act relating to home warranty transfers; amending 147 s. 634.312, F.S.; providing a limitation on the 148 application of provisions relating to home warranty 149 contract assignments; amending s. 634.331, F.S.; 150 making technical changes; conforming provisions to 151 changes made by the act; creating part IV of ch. 634, 152 F.S., entitled “Miscellaneous Provisions”; creating s. 153 634.601, F.S., defining terms; creating s. 634.602, 154 F.S.; providing requirements for express written 155 warranties and home warranties transferred to 156 subsequent home purchasers; providing for the 157 assignment of maintenance contracts in certain 158 circumstances; specifying conditions for the automatic 159 transfer of home warranties that are conditions 160 included in maintenance contracts; providing 161 requirements of a subsequent purchaser who accepts the 162 assignment of a maintenance contract, and of a builder 163 or home warranty association in such instance; 164 requiring a builder or home warranty association to 165 provide certain notice to a subsequent purchaser; 166 providing that such notification be at a certain 167 address unless the builder or home warranty 168 association are notified by the purchaser of a 169 preferred method; restricting a builder or home 170 warranty association from limiting the timeframe for 171 notice by a subsequent purchaser; prohibiting a 172 builder or home warranty association from charging a 173 fee for transferring the warranty; providing 174 construction; renaming ch. 634, F.S.; providing an 175 effective date.